India Tops South Asia Hunger Chart Amid COVID19 Pandemic

[Riaz Haq]

India ranks 94th among 107 nations ranked by World Hunger Index in 2020. Other South Asian have fared better: Pakistan (88), Nepal (73), Bangladesh (75), Sri Lanka (64) and Myanmar (78) – and only Afghanistan has fared worse at 99th place. The COVID19 pandemic has worsened India's hunger and malnutrition. Tens of thousands of Indian children were forced to go to sleep on an empty stomach as the daily wage workers lost their livelihood and Prime Minister Narendra Modi imposed one of the strictest lockdowns in the South Asian nation. Pakistan's Prime Minister Imran Khan opted for "smart lockdown" that reduced the impact on daily wage earners. China, the place where COVID19 virus first emerged, is among 17 countries with the lowest level of hunger. 

World Hunger Rankings 2020. Source: World Hunger Index Report

India Among Worst Hit: 

 

India has 17.3% child wasting rate, the worst in South Asia region. Child stunting is also extremely high across South Asia. “Data from 1991 through 2014 for Bangladesh, India, Nepal, and Pakistan showed that stunting is concentrated among children from households facing multiple forms of deprivation, including poor dietary diversity, low levels of maternal education, and household poverty,” the World Hunger Report said. China, the place where COVID19 virus first emerged, is among 17 countries with the lowest level of hunger. 

Hunger and malnutrition are worsening in parts of sub-Saharan Africa and South Asia because of the coronavirus pandemic, especially in low-income communities or those already stricken by continued conflict. 

India has performed particularly poorly because of one of the world's strictest lockdowns imposed by Prime Minister Modi to contain the spread the virus. 

Global Epicenters of Covid19. Source: Bloomberg

Global Food Prices:

Global food prices are soaring by double digits amid the coronavirus pandemic, according to Bloomberg News. Bloomberg Agriculture Subindex, a measure of key farm goods futures contracts, is up almost 20% since June. It may in part be driven by speculators in the commodities markets. These rapid price rises are hitting the people in Pakistan and the rest of the world hard.  In spite of these hikes, Pakistan remains among the least expensive places for food, according recent studies. It is important for Pakistan's federal and provincial governments to rise up to the challenge and relieve the pain inflicted on the average Pakistani consumer.  

Global Agricultural Futures Contracts. Source: Bloomberg

Global Food Prices:

Global food prices are increasing at least partly due to several nations buying basic food commodities to boost their strategic reserves in the midst of the pandemic.  A Bloomberg News report says that "agricultural commodity buyers from Cairo to Islamabad have been on a shopping spree since the Covid-19 pandemic upended supply chains".  It may in part be driven by speculators in the commodities markets. Here's an excerpt of the Bloomberg story:

"Agricultural prices have been on the rise as countries stepped up purchases, adding to demand from China and a drought in the Black Sea region. That has helped push the Bloomberg Agriculture Subindex, which measures key farm goods futures contracts, up almost 20% since June. Sugar prices have gained a boost as China replenished stockpiles, said Geovane Consul, chief executive officer of a Brazilian sugar and ethanol joint venture between U.S. agribusiness giant Bunge Ltd. and British oil major BP Plc." 

Supply Constraint in Pakistan: 

The Pakistan Government estimates final wheat production ended up at 25.5 million tons, slightly above the five-year average of 25.38 million tons, according to Grain Central. While that represented a 1.2 million tons increase on the 24.3 million tons harvested in 2019, it was well short of the government’s target of 27 million tons, forcing Pakistan to import wheat at higher global prices.

Demand for fruits and vegetables is also rising at about 9.5% a year, according to Mordor Intelligence. The supply is falling short of demand, putting pressure on prices. 

Global Food Price Comparison. Source: Bayut

Food Prices in Pakistan:

The food prices have risen 14% for urban and 16.8% for rural areas of Pakistan in the last 12 months, according to Pakistan Bureau of Statistics. In spite of this inflationary trend,  the grocery prices in Pakistan remain among the lowest in the world. A comparison by Dubai-based Bayut shows that groceries in Pakistan cost 72.9% less than in the United States. Other least-expensive countries for groceries include Tunisia ( 67% less), Ukraine ( 66.7% less), Egypt (65.6% less) and Kosovo (65.6% less). 

Globally, Switzerland sells the most expensive groceries, with prices 79.1% higher than in the U.S. Norway is the second most expensive place to buy groceries, with prices 37.4% more expensive than in the U.S., and Iceland is third most expensive, where food items are 36.6% pricier, according to Bayut.

Cost of Dining Out. Source: Commodity.com

Summary:

India ranks 94th among 107 nations ranked by World Hunger Index in 2020.  China, the place where COVID19 virus first emerged, is among 17 countries with the lowest level of hunger.  Other South Asian have fared better: Pakistan (88), Nepal (73), Bangladesh (75), Sri Lanka (64) and Myanmar (78) – and only Afghanistan has fared worse at 99th place. However, global food price hikes have also hit average Pakistani hard in spite of the fact that grocery prices in Pakistan remain the lowest the world.  Bloomberg Agriculture Subindex, a measure of key farm goods futures contracts, is up almost 20% since June. It may in part be driven by speculators in the commodities markets. World food commodity prices are increasing at least partly due to several nations buying basic food commodities to boost their strategic reserves in the midst of the pandemic. It is important for Pakistan's federal and provincial governments to intervene in the markets to relieve the average Pakistani consumer's pain. 

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[Riaz Haq]

From Times of India:


The decline in India’s rankings on a number of global opinion-based indices are due to "cherry-picking of certain media reports" and are primarily based on the opinions of a group of unknown “experts”, a recent study has concluded.
A new working paper titled "Why India does poorly on global perception indices" found that while such indices cannot be ignored as "mere opinions" since they feed into World Bank’s World Governance Indicators (WGI), there needs to be a closer inspection on the methodology used to arrive at the data.

https://timesofindia.indiatimes.com/india/indias-declining-rank-in-...

The findings were published by Sanjeev Sanyal, member of the Economic Advisory Council to the Prime Minister and Aakanksha Arora, deputy director of (EAC to PM).

In the report, the authors conducted a case study of three o ..

In the report, the authors conducted a case study of three
opinion-based indices: Freedom in the World index, EIU
Democracy index and Variety of Democracy.
They drew four broad conclusions from the study:
1) Lack of transparency: The indices were primarily based on
the opinions of a tiny group of unknown “experts”.

2) Subjectivity: The questions used were subjective and
worded in a way that is impossible to answer objectively
even for a country.

3) Omission of important questions: Key questions which
are pertinent to a measure of democracy, like “Is the head of
state democratically elected?”, were not asked.

4) Ambiguous questions: Certain questions used by these
indices were not an appropriate measure of democracy
across all countries.

Here's a look at the three indices examined by the study:
Freedom in the World Index

India’s score on the US-based Freedom in the World Index —
an annual global report on political rights and civil liberties
— has consistently declined post 2018.

It's score on civil liberties was flat at 42 till 2018 but dropped
sharply to 33 by 2022. It's political rights score dropped from
35 to 33. Thus, India’s total score dropped to 66 which places
India in the “partially free” category – the same status it had
during the Emergency.

The study found that only two previous instances where
India was considered as Partially Free was during the time of
Emergency and then during 1991-96 which were years of
economic liberalisation.

"Clearly this is arbitrary. What did the years of Emergency,
which was a period of obvious political repression,
suspended elections, official censoring of the press, jailing of
opponents without charge, banned labour strikes etc, have
in common with period of economic liberalisation and of
today," the study asked.
It concluded that the index "cherry-picked" some media
reports and issues to make the judgement.
The authors further found that in Freedom House's latest
report of 2022, India’s score of the Freedom in the World
Index is 66 and it is in category "Partially Free".
"Cross country comparisons point towards the arbitrariness
in the way scoring is done. There are some examples of
countries which have scores higher than India which seem
clearly unusual. Northern Cyprus is considered as a free
territory with a score of 77 (in 2022 report). It is ironical as
North Cyprus is not even recognised by United Nations as a
country. It is recognised only by Turkey," the authors noted.
Economist Intelligence Unit
In the Economist Intelligence Unit (EIU) Democracy Index,
published the research and consulting arm of the firm that
publishes the Economist magazine, India is placed in the
category of “Flawed Democracy”.
Its rank deteriorated sharply from 27 in 2014 to 53 in 2020
and then improved a bit to 46 in 2021. The decline in rank
has been on account of decline in scores primarily in the
categories of civil liberties and political culture.
The authors found that list of questions used to determine
the outcome was "quite subjective", making objective

[Riaz Haq]

Concern grows in Modi's India over hunger deaths, food aid, and data gaps

https://www.thenewhumanitarian.org/news-feature/2022/12/19/India-hu...

The government is accused of failing to log starvation deaths, while the safety net isn’t catching all it should.

The government hasn’t logged a single death from starvation since 2016, but Mrinalini Paul, who works with the Right to Food and Work Network (RTFWN), a local NGO, said it’s clear Sardar’s death should have been recorded as one, as should many others.

The Sardar family was eligible for 35 kilos of rice and grain monthly from a government-run aid programme but had been approved for just two kilos because they lacked the right ID documents, according to Paul. “They had been without even these minimal benefits for six months,” she told The New Humanitarian.

Sunil Agarwala, the district magistrate of Jhargram, refuted the allegations, telling The Hindu newspaper they were "baseless", while insisting that Sardar’s death “was due to illness, TB, and other reasons”.

According to the World Health Organization, undernutrition is a key driver of TB, while malnutrition also makes TB therapy less effective and raises the risk of TB-related death.

The recently published Medical Certification Cause of Death (MCCD), 2020 report found that fewer than a quarter of the 81,15,882 registered deaths in India that year had known causes. Hunger activists are alarmed that a country with 1.4 billion people can only verify the causes of 22.5% of its documented fatalities.

Swati Narayan, assistant professor at the School for Public Health and Human Development at O.P. Jindal Global University, told The New Humanitarian that medical workers are unlikely to catch if the cause of death is starvation given how post-mortems are typically carried out. 

She said it was crucial to also consider the person's socioeconomic position and the condition of their body, including the weight of their organs, visceral fat, and diseases brought on by a weaker immune system and malnutrition.

“The post-mortem reports are not an accurate reflection of hunger or starvation deaths in the country,” Narayan said. “Oral autopsies are much better at determining if the cause of death was hunger.”

Worsening hunger and the fight for a stronger safety net

Question marks around Sardar’s death and others like it – a similar case involving three “hunger deaths” in the same family went before the high court last month in Jharkhand, which borders West Bengal to the east – come amid signs of growing food insecurity in India.

The 2022 Global Hunger Index ranks India at 107 out of 121 nations, six places lower than its previous ranking, and below the likes of Ethiopia, Bangladesh, and Pakistan. 

While India remains in the “serious” category rather than “alarming” or “very alarming”, it recorded the highest percentage (19.3%) of any country of children under five who are “wasting”, meaning they’re below average weight for their height.

The pandemic made hunger worse, but income losses and rising debt continued to drive it up long after the worst of the health crisis had passed. A survey by the Right to Food Campaign in late 2021/early 2022 found that nearly 80% of respondents faced food insecurity, and almost half had run out of food the previous month. 

However, the hunger problems also pre-date COVID. India’s last National Family Health Survey, which used data from 2019, found that stunting – a sign of chronic malnutrition – had risen in 11 out of the 17 states. In 13 states, wasting had also increased. 

[Riaz Haq]

In the absence of real data, India's stats are all being manufactured by BJP to win elections. 

Postponing India’s census is terrible for the country

But it may suit Narendra Modi just fine

https://www.economist.com/asia/2023/01/05/postponing-indias-census-...

Narendra Modi often overstates his achievements. For example, the Hindu-nationalist prime minister’s claim that all Indian villages have been electrified on his watch glosses over the definition: only public buildings and 10% of households need a connection for the village to count as such. And three years after Mr Modi declared India “open-defecation free”, millions of villagers are still purging al fresco. An absence of up-to-date census information makes it harder to check such inflated claims. It is also a disaster for the vast array of policymaking reliant on solid population and development data.

----------

Three years ago India’s government was scheduled to pose its citizens a long list of basic but important questions. How many people live in your house? What is it made of? Do you have a toilet? A car? An internet connection? The answers would refresh data from the country’s previous census in 2011, which, given India’s rapid development, were wildly out of date. Because of India’s covid-19 lockdown, however, the questions were never asked.

Almost three years later, and though India has officially left the pandemic behind, there has been no attempt to reschedule the decennial census. It may not happen until after parliamentary elections in 2024, or at all. Opposition politicians and development experts smell a rat.

----------

For a while policymakers can tide themselves over with estimates, but eventually these need to be corrected with accurate numbers. “Right now we’re relying on data from the 2011 census, but we know our results will be off by a lot because things have changed so much since then,” says Pronab Sen, a former chairman of the National Statistical Commission who works on the household-consumption survey. And bad data lead to bad policy. A study in 2020 estimated that some 100m people may have missed out on food aid to which they were entitled because the distribution system uses decade-old numbers.

Similarly, it is important to know how many children live in an area before building schools and hiring teachers. The educational misfiring caused by the absence of such knowledge is particularly acute in fast-growing cities such as Delhi or Bangalore, says Narayanan Unni, who is advising the government on the census. “We basically don’t know how many people live in these places now, so proper planning for public services is really hard.”

The home ministry, which is in charge of the census, continues to blame its postponement on the pandemic, most recently in response to a parliamentary question on December 13th. It said the delay would continue “until further orders”, giving no time-frame for a resumption of data-gathering. Many statisticians and social scientists are mystified by this explanation: it is over a year since India resumed holding elections and other big political events.

[Riaz Haq]

One-tenth of India's population escaped poverty in 5 years - government report
By Manoj Kumar

https://www.reuters.com/world/india/one-tenth-indias-population-esc...


NEW DELHI, July 17 (Reuters) - Nearly 135 million people, around 10% of India's population, escaped poverty in the five years to March 2021, a government report found on Monday.

Rural areas saw the strongest fall in poverty, according to the study, which used the United Nations' Multidimensional Poverty Index (MPI), based on 12 indicators such as malnutrition, education and sanitation. If people are deprived in three or more areas, they are identified as "MPI poor."

"Improvements in nutrition, years of schooling, sanitation and cooking fuel played a significant role in bringing down poverty," said Suman Bery, vice-chairman of the NITI Aayog, the government think-tank that released the report.

The percentage of the population living in poverty fell to 15% in 2019-21 from 25% in 2015/16, according to the report, which was based on the 2019-21 National Family Health Survey.

A report by the United Nations Development Programme (UNDP) released last week said the number of people living in multidimensional poverty fell to 16.4% of India's population in 2021 from 55% in 2005.

According to UNDP estimates, the number of people, who lived below the $2.15 per day poverty line had declined to 10% in India in 2021.

India's federal government offers free food grain to about 800 million people, about 57% of country's 1.4 billion population, while states spend billions of dollars on subsidising education, health, electricity and other services.

The state that saw the largest number moving out of poverty was Uttar Pradesh, with 343 million people, followed by the states of Bihar and Madhya Pradesh, according to the report.

Reporting by Manoj Kumar; Editing by Conor Humphries

[Riaz Haq]

Over 10,000 MSMEs shut during 2016-2022 period; 96% in past 3 years, shows govt data | The Financial Express

https://www.financialexpress.com/industry/sme/msme-eodb-over-10000-...

Ease of Doing Business for MSMEs: The government has come out with consolidated data on the number of MSMEs closed over the past six years including the Covid period in the country. According to the combined data from the Udyam registration portal and the erstwhile Udyog Aadhaar Memorandum (UAM), 10,067 MSMEs were shut from 2016 to 2022.

Sharing data in the Rajya Sabha on Monday in a written reply to a question on the closure of units, Minister of State for MSMEs Bhanu Pratap Singh Verma noted that 400 MSMEs (4 per cent of total closures) were shut during the 2016-2019 period as per the UAM data. On the other hand, the majority 96 per cent units — 9,667 were shut between 2019 and 2022, according to the UAM and Udyam portal data.

In reply to a separate question on the Covid impact on MSMEs, Verma shared that 2,870 MSMEs registered on the Udyam portal were shut between April 1, 2022, and July 20, 2022, along with employment loss for 19,862 people. Likewise, 6,222 Udyam-registered MSMEs were shut in FY22 with 42,662 people losing jobs. Between July 1, 2020, and March 31, 2021, 175 Udyam units were closed and 724 jobs were lost.

“Closure of MSMEs is certainly a concern for the government for which necessary steps and studies have been undertaken. The closure is one of the reasons cited by units for cancelling their MSME registrations, but the reason for closure is not always mentioned by them. Other reasons for cancelling registrations include stopping the manufacturing of goods or moving to other businesses or they just don’t need the registration anymore,” Ishita Ganguli Tripathy, Additional Development Commissioner, Ministry of MSME told Financial Express Online.

Citing studies by SIDBI, SBI, and others, Tripathy noted that while there have been closures, some of them have been temporary and due to schemes such as Emergency Credit Line Guarantee Scheme (ECLGS), many MSMEs have been able to save employment as well.

[Riaz Haq]

‘Note ban, GST, COVID shocks cost ₹11.3 lakh cr., 1.6 crore informal sector jobs’

India Ratings says in FY23, GVA in the economy by unincorporated businesses was 1.6% below 2015-16 levels; firm estimates 63 lakh informal enterprises shut down between FY16 and FY23

https://www.thehindu.com/business/Economy/note-ban-gst-covid-shocks...

In 2022-23, the Gross-Value Added (GVA) in the economy by such unincorporated enterprises was still 1.6% below 2015-16 levels. Moreover, their compounded annual growth rate (CAGR) was 7.4% between 2010-11 and 2015-16, but slipped into a 0.2% contraction since then, the rating firm reckoned based on the recently released findings of the government’s Annual Survey of Unincorporated Sector Enterprises (ASUSE).

------

The latest data suggests that the real GVA of unincorporated firms in manufacturing, trade and other services (MTO) was ₹9.51 lakh crore in 2022-23, with an 18.2% share in India’s real MTO GVA, falling sharply from 25.7% in 2015-16.

“The shrinkage has been sharper in other services and trade, with the informal sector’s share dropped to 32.3% and 21.2% in 2022-23 from the pre-shock level of 46.9% and 34.3%, respectively. In the manufacturing sector, the share of the informal sector fell to 10.2%, from 12.5% during the same period,” the firm said in its report.


-----

Had the macro shocks not taken place during the post 2015-16 period and the growth in these enterprises followed the pattern between 2010-11 and 2015-16, the total number of such firms would have reached 7.14 crore in 2022-23, with the number of workers employed rising to 12.53 crore, India Ratings concluded.

The unorganised sector contributes over 44% to the country’s GVA and employs nearly 75% of the work force employed in non-agricultural enterprises, as per the 2022-23 Periodic Labour Force Survey.

[Riaz Haq]

1.6 Crore Jobs Lost Due To Note Ban, GST, Covid: India Ratings & Research Study


https://trak.in/stories/1-6-crore-jobs-lost-due-to-note-ban-gst-cov...

India’s informal sector has faced a series of macroeconomic shocks since 2016, leading to substantial economic losses. According to India Ratings and Research, the cumulative impact of these shocks, including demonetisation, the rollout of the Goods and Services Tax (GST), and the COVID-19 pandemic, has resulted in an estimated economic loss of ₹11.3 lakh crore or 4.3% of India’s GDP in 2022-23. This blog explores the severe impact on the informal sector, job losses, and the implications for India’s economy.

Impact of Macroeconomic Shocks
Demonetisation, GST, and COVID-19
The informal sector has been severely impacted by demonetisation, the GST rollout, and the COVID-19 pandemic. These shocks have disrupted the functioning of informal enterprises, leading to a decline in economic activity and job losses. Sunil Kumar Sinha, principal economist at India Ratings, noted that 63 lakh informal enterprises shut down between 2015-16 and 2022-23, resulting in the loss of about 1.6 crore jobs.

Decline in Economic Contribution
The Gross-Value Added (GVA) by unincorporated enterprises in the economy in 2022-23 was still 1.6% below the 2015-16 levels. Their compounded annual growth rate (CAGR) fell from 7.4% between 2010-11 and 2015-16 to a 0.2% contraction since then. The real GVA of unincorporated firms in manufacturing, trade, and other services (MTO) dropped significantly, with their share in India’s real MTO GVA falling from 25.7% in 2015-16 to 18.2% in 2022-23.

Employment Challenges
Job Losses and Sector Shrinkage
The informal sector has seen a significant decline in employment. The number of workers employed in the non-agricultural sector increased to 10.96 crore in 2022-23 from 9.79 crore in 2021-22. However, this was lower than the 11.13 crore people employed in the sector in the ‘pre-shock period’ of 2015-16. The manufacturing sector witnessed a notable decline in jobs, with employment dropping from 3.6 crore in 2015-16 to 3.06 crore in 2022-23.

Structural Shift Needed
India’s over 400 million informal labour market requires a structural shift to address the challenges posed by these macroeconomic shocks. The rise in the formalisation of the economy has led to robust tax collections, but the reduced unorganised sector footprint has implications for employment generation. The informal sector’s share in various sectors has decreased sharply, highlighting the need for measures to support and revitalise this critical part of the economy.

Future Prospects and Recommendations
Addressing the Decline
To mitigate the impact of these shocks and support the informal sector, India needs targeted policies and interventions. The government should focus on providing financial assistance, improving access to credit, and enhancing the business environment for informal enterprises. Additionally, measures to ensure job security and create new employment opportunities are crucial to addressing the challenges faced by the informal labour market.

Enhancing Economic Resilience
Strengthening the resilience of the informal sector is essential for sustained economic growth. Promoting digital literacy, enhancing skill development programs, and providing incentives for formalisation can help informal enterprises adapt to changing economic conditions. Ensuring social security and welfare measures for informal workers will also contribute to building a more inclusive and resilient economy.

Conclusion
India’s informal sector has borne the brunt of multiple macroeconomic shocks, resulting in significant economic losses and job reductions. Addressing these challenges requires a comprehensive approach that supports informal enterprises, enhances economic resilience, and promotes inclusive growth. By implementing targeted policies and interventions, India can mitigate the impact of these shocks and ensure the sustained growth of its informal sector.