Poverty reduction not up to mark post liberalisation: Montek

from The Hindu

Economic liberalisation has not resulted in rapid reduction in poverty, as was expected, Planning Commission Deputy Chairman Montek Singh Ahluwalia said.

There was a doubt raised by few about liberalisation being an antidote to poverty, but a counter view also existed. However, liberalisation has not resulted in a desired level of poverty reduction, Ahluwalia said at the launch of a book titled 'Ending Poverty in South Asia: Ideas that Work' last evening.

Decline in poverty is less than what the government had perceived, he added.

He, however, admitted that reduction in poverty was better than the previous economic regime and the pace had improved.

"Massive amount of investment in infrastructure is required if we want to get rid of poverty," he said adding investment is required in building roads, ports, electricity generation, etc.

Investment in infrastructure will have to be about 350 billion dollars in the next five years to propel overall growth of economy to over eight per cent, he said.

This chunk of the money would have to be in the form of foreign direct investment and private sector participation, he said.

He also stressed on the need to increase productive employment for reducing the level of poverty.

A comprehensive approach for ending poverty needs to be adopted, he said.