Purchase power parity is a consolation to poor people by developed economies.It consoles in the way that though you are poor in income by any standard, you may still buy many things in your country with your paltry income, but dont think you have reached to a superior stage as tomtommed by your politicians as your actual position is a pathetic 160. To come to an actual picture of development, it is neccessary to tabulate per capita income of bottom 20% who are in BPL and also exclude the top 10%. This will only give a correct picture. As per Arjun Sengupta commitee report, 40% Indians still earn below 20 rupees a day. let us not brag abuot something which we are not.
RE:Purchase power parity
by Girish Rao on Jul 29, 2008 03:16 PM Permalink
What you say makes sense and as per goldman Sachs if India grows continuosly for 6.5 % then by 2050 we will have per-capita which is 1/3 rd of US. is it possible to have 6.5 percent growth for 40 years, I think it is possible. US took a long time to reach the present situation. So also Japan, Korea etc. We can catch up. However imagine a 1.5 billion population earning 1/3rd of US Per-capita, it will be devastating on the environment. There is no way out of the conundrum, nature is going to cull a lot us. but then PPP are useful data when western companies want to outsource jobs to other countries.
