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Thread: The World’s Largest Blackout

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    India: Economic power house or poor house?

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    Quote Originally Posted by Banz To view the link you have to Register
    Even the BBC site thought this was a big news

    I don't think those foriegners realise that those people who faced the blackout have 4-6 hours of power cuts everyday
    Of course, that sort of information, concerning unreliable infrastructure, does not help
    Mother India's image as an emerging economic power house....Check out this article:



    India: Economic power house or poor house?
    Mary Albino

    India’s economic miracle is a perfect example of how appearances can be deceiving.

    The dominant narrative on the country goes like this: as the fourth largest economy in the world, with a steady annual growth rate of close to 9 per cent, India is a rising economic superstar. Bangalore is the new Silicon Valley. Magazines such as Forbes and Vogue have launched Indian editions. The Mumbai skyline is decorated with posh hotels and international banks.

    There are numbers to back up this narrative. The average Indian takes home $1,017 (U.S.) a year. Not much, but that’s nearly double the average five years ago and triple the annual income at independence, in 1947. The business and technology sector has grown tenfold in the past decade. Manufacturing and agriculture are expanding, and trade levels are way up.

    India is also on the up and up in terms of human well-being. Life expectancy and literacy are steadily rising, while child mortality continues to decline. The poverty rate is down to 42 per cent from 60 per cent in 1981. While 42 per cent still leaves a long way to go, India’s situation seems rosy compared with that of, say, Malawi and Tanzania, which have poverty rates of 74 per cent and 88 per cent, respectively.

    If we examine these statistics in real numbers, however, a different narrative emerges, one the Indian government likes less.

    With a population as big as India’s, 42 per cent means there are some 475 million Indians living on less than $1.25 per day. That’s 10 times as many facing dire poverty as Malawi and Tanzania combined.

    It means India is home to more poor people than any other country in the world.

    To put it another way, one of every three people in the world living without basic necessities is an Indian national.

    The real number is probably even larger. The recently launched Multidimensional Poverty Index (MPI), a more comprehensive measure of deprivation than the current “poverty line” of $1.25 per day, uses 10 markers of well-being, including education, health and standard of living. The MPI, developed by the Poverty & Human Development Initiative at Oxford University, puts the Indian poverty rate at 55 per cent. That’s 645 million people — double the population of the United States and nearly 20 times the population of Canada.

    By this measure, India’s eight poorest states have more people living in poverty than Africa’s 26 poorest nations.

    A 10-year-old living in the slums of Calcutta, raising her 5-year-old brother on garbage and scraps, and dealing with tapeworms and the threat of cholera, suffers neither more nor less than a 10-year-old living in the same conditions in the slums of Lilongwe, the capital of Malawi. But because the Indian girl lives in an “emerging economy,” slated to battle it out with China for the position of global economic superpower, and her counterpart in Lilongwe lives in a country with few resources and a bleak future, the Indian child's predicament is perceived with relatively less urgency.

    One is “poor” while the other represents a “declining poverty rate.”

    What’s more, in India there are huge discrepancies in poverty from one state to the next. Madhya Pradesh, for example, is comparable in population and incidence of poverty to the war-torn Democratic Republic of Congo. But the misery of the DRC is much better known than the misery of Madhya Pradesh, because sub-national regions do not appear on “poorest country” lists. If Madhya Pradesh were to seek independence from India, its dire situation would become more visible immediately.

    As India demonstrates, having the largest number of poor people is not the same as being the poorest country. That’s unfortunate, because being the poorest country has advantages. In the same way a tsunami or earthquake garners an intense outpouring of aid and support, being labelled “worst off” or “most poor” tends to draw a bigger share of international attention — and dollars.

    When Bangladesh became independent from Pakistan in 1971, it was the poorest country in the world, so poor most economists were skeptical it would ever succeed on its own. But being labelled “dead last” worked in its favour: billions of dollars in aid money flooded in, and NGO and charity groups arrived in droves. The dominant narrative of Bangladesh at the time was of a war-ravaged, cyclone-battered and fledgling country on the brink of famine. That seemed to help rally the troops.

    No doubt India’s government wants the world to perceive the nation in terms of its potential and not its shortcomings. But because it’s home to 1.1 billion people, India is more able than most to conceal the bad news behind the good, making its impressive growth rates the lead story rather than the fact that it is home to more of the world’s poor than any other country.

    Still, at least part of the blame should be placed on the way poverty is presented on the international stage. If the unit of deprivation is a human being, then the prevalence of poverty should be presented in numbers of lives. If we know precisely how many billionaires India has — 49 in 2010, double last year’s number — than we should also know precisely how many people live without basic necessities.

    Mary Albino has lived and worked in India and writes on economic issues.

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    Very long article and it has nothing to do with the thread but I read it all.

    The people may be poor, but the government isnt. They are the ones supposed to generate and distribute electricity.
    Poor people don't even have to pay for electricity, they have a fixed monthly bill of Rs 100, which is 1.7 dollar.

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    Quote Originally Posted by Banz To view the link you have to Register
    Very long article and it has nothing to do with the thread but I read it all.

    The people may be poor, but the government isnt. They are the ones supposed to generate and distribute electricity.
    Poor people don't even have to pay for electricity, they have a fixed monthly bill of Rs 100, which is 1.7 dollar.
    It is a matter of opinion, whether that article has anything to do with this thread.

    Who is the government? In a democracy, the government is the people. It isn't some abstract dictatorial entity, that one can blame all the country's shortcomings upon.

    The people of India must hold their politicians accountable.

    I only hope that India does not sink ever deeper into the mud; and realizes instead that economic prosperity; which is not shared (at least minimally) by the majority of the population is just a total sham...

    India reminds me of a business executive traveling to meetings on a tonga cart; while he waits for the power to come back on; so that he can recharge his dead Blackberry, and make a conference call instead..


    Tonga Cart

    Here is another interesting article:
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    Those numbers are extremely misleading.
    1.25 dollar per head per day would mean 70 Rs per person, that is 350-400 per household everyday which adds up to over one lakh Rs a year.
    That's enough...

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    India. the proverbial ant-hill

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    Quote Originally Posted by Banz To view the link you have to Register
    Those numbers are extremely misleading.
    1.25 dollar per head per day would mean 70 Rs per person, that is 350-400 per household everyday which adds up to over one lakh Rs a year.
    That's enough...
    India will always go her own way. How do you expects foreigners to understand the economy of India? ...i.e.,The vast complex of low-end menial laborers, like sweepers etc., and domestic servants like ayahs, cooks etc..... the whole subculture of the Indian economy. Then there is the omnipresent "chai pani"......it boggles the mind...

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    Quote Originally Posted by hank To view the link you have to Register
    India will always go her own way. How do you expects foreigners to understand the economy of India? ...i.e.,The vast complex of low-end menial laborers, like sweepers etc., and domestic servants like ayahs, cooks etc..... the whole subculture of the Indian economy. Then there is the omnipresent "chai pani"......it boggles the mind...
    Yes it's difficult to understand those things...

    Take the example of one of Mumbai's largest slum, To view the link you have to Register.
    There are 5000 businesses and 15000 small scale factories within Dharavi itself. The total annual turnover is over 600 million dollar.
    The people live in bad conditions but the fact that they could generate so much money boggles me mind...

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    With less rain to water the fields, increases the number of farmers using electric pumps to draw water from wells.

    Power outages do not affect large industries because they have their own power plants or large diesel powered generators. But seriously harm small businesses and investment.

    "It's the second day that happens. I have ordered punishment for those who use a greater amount of electricity of their share," said Energy Minister, Sushilkumar Shinde.

    Clearly this is a problem of administration and regulation of services between users.

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    Quote Originally Posted by Banz To view the link you have to Register
    I was not affected
    I thought you were!

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    Quote Originally Posted by Jeppe To view the link you have to Register
    I thought you were!
    The northern states were affected.

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    Quote Originally Posted by Ezequiel To view the link you have to Register
    With less rain to water the fields, increases the number of farmers using electric pumps to draw water from wells.

    Power outages do not affect large industries because they have their own power plants or large diesel powered generators. But seriously harm small businesses and investment.

    "It's the second day that happens. I have ordered punishment for those who use a greater amount of electricity of their share," said Energy Minister, Sushilkumar Shinde.

    Clearly this is a problem of administration and regulation of services between users.
    Actually even small businesses have diesel generators. But the profit margin drastically reduces when using one's own diesel generator for running a small business.

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