Key Modi-Appointee Arvind Panagariya Defends Income Inequality
Key Modi-Appointee Arvind Panagariya Defends Income Inequality The Wire
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New Delhi: Economist Arvind Panagariya Defends Income Inequalities in India
Date: April 2, 2024
Introduction
Economist Arvind Panagariya, the recently appointed chairman of the 16th Finance Commission and closely associated with the Modi regime, has come forward to defend stark income inequalities in India. In an article titled “Don’t lose sleep over Inequality” published in The Times of India, Panagariya argues that inequality should not be a cause for concern.
Worsening Income and Wealth Inequality in India
A recent report by the World Inequality Lab has raised alarm bells about the state of income and wealth inequality in India. The report suggests that inequality in India today is worse than during colonial rule. The research refers to the present times as the “billionaire raj” and highlights that inequality has been skyrocketing since the 1980s.
The report reveals that between 2014-15 and 2022-23, wealth concentration among the top 1% has reached its highest historical levels. India’s top 1% income share is now among the highest in the world, surpassing countries like South Africa, Brazil, and the United States. These findings confirm what has already been reported in surveys and estimates for some time now.
Oxfam’s Findings on Wealth Inequality
Oxfam’s research has also shed light on the growing wealth gap between the top and bottom segments of Indian society. The organization found that in 2017, 73% of the wealth generated went to the richest 1%, while the poorest half of the population, comprising 670 million Indians, saw only a 1% increase in their wealth. Furthermore, the top 10% of the Indian population holds 77% of the total national wealth.
Panagariya’s Defense of Inequality
Arvind Panagariya argues that income inequality should be seen as a necessary side-effect of wealth generation. He suggests that poverty reduction requires wealth creation, which often leads to an increase in inequality between wealth creators and the rest of society. Panagariya claims that while some may raise concerns about inequality, the majority of people do not resent wealth creators.
Criticism of Panagariya’s Stance
Panagariya’s defense of inequality reflects an outdated way of thinking that has been discredited, particularly after the failure of the “trickle-down theory.” As the Chairman of the Finance Commission, Panagariya is responsible for addressing inequities in the system and allocating resources between states. His lack of commitment to the principle of equality is a cause for grave concern.
Panagariya dismisses the concerns of those worried about rising inequality as “inequality alarmists” and claims that the masses are not bothered by this form of inequality. However, he fails to acknowledge the negative impact that neighborhood inequality has on those left behind.
Visual Representation of Inequality
Photographic imagery has been used extensively to illustrate the extent of inequality in India. These images depict stark contrasts between affluent neighborhoods and impoverished areas, effectively highlighting the issue.
Conclusion
The defense of crony billionaires and the dismissal of rising inequality as a necessary outcome of wealth generation are concerning. In order to achieve sustainable development and address the Sustainable Development Goals (SDGs), it is crucial to tackle income and wealth inequality. The Indian government must prioritize policies that promote equitable distribution of resources and ensure that no one is left behind.
SDGs, Targets, and Indicators
1. SDGs Addressed or Connected to the Issues Highlighted in the Article:
- SDG 1: No Poverty
- SDG 10: Reduced Inequalities
2. Specific Targets Under Those SDGs Based on the Article’s Content:
- SDG 1.4: By 2030, ensure that all men and women, in particular, the poor and the vulnerable, have equal rights to economic resources, as well as access to basic services, ownership, and control over land and other forms of property, inheritance, natural resources, appropriate new technology, and financial services, including microfinance.
- SDG 10.1: By 2030, progressively achieve and sustain income growth of the bottom 40 percent of the population at a rate higher than the national average.
3. Indicators Mentioned or Implied in the Article:
- Income and wealth inequality
- Gini coefficient (measure of income inequalities)
- Top 1% income and wealth shares
- Percentage of wealth generated going to the richest 1%
- Percentage of total national wealth held by the top 10% of the population
Table: SDGs, Targets, and Indicators
| SDGs | Targets | Indicators |
|---|---|---|
| SDG 1: No Poverty | Target 1.4: By 2030, ensure that all men and women, in particular, the poor and the vulnerable, have equal rights to economic resources, as well as access to basic services, ownership, and control over land and other forms of property, inheritance, natural resources, appropriate new technology, and financial services, including microfinance. | – Income and wealth inequality – Gini coefficient (measure of income inequalities) – Top 1% income and wealth shares – Percentage of wealth generated going to the richest 1% – Percentage of total national wealth held by the top 10% of the population |
| SDG 10: Reduced Inequalities | Target 10.1: By 2030, progressively achieve and sustain income growth of the bottom 40 percent of the population at a rate higher than the national average. | – Income and wealth inequality – Gini coefficient (measure of income inequalities) – Top 1% income and wealth shares – Percentage of wealth generated going to the richest 1% – Percentage of total national wealth held by the top 10% of the population |
Behold! This splendid article springs forth from the wellspring of knowledge, shaped by a wondrous proprietary AI technology that delved into a vast ocean of data, illuminating the path towards the Sustainable Development Goals. Remember that all rights are reserved by SDG Investors LLC, empowering us to champion progress together.
Source: m.thewire.in
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