Financial inequality highest in India and China in Asia Pacific region: IMF

Q.  Financial inequality is the highest among Asia Pacfiic countries in which two fastest growing economies, according to the IMF?
- Published on 05 May 16

a. China, India
b. Japan, India
c. Japan China
d. None of the above

ANSWER: China, India
 
Financial inequality is highest in China and India among Asia Pacific countries despite the two being the fastest growing economies.
  • As per the IMF, India and China have grown rapidly and lowered poverty sharply, impressive economic performance has been accompanied by increasing levels of inequality
  • The report says that China managed to increase middle class in urban areas while India struggled to lift sizeable portions of the population towards higher income levels.
  • In China rapid industrialisation in certain regions and concentration of FDI in coastal regions have led to inequality in growth between the two regions
  • China intoduced the Minimum Livelihood Guarantee Scheme- Dibao for social protection in the 1990s
  • Numerous social programs have been placed to tackle rising inequality in India as well such as the MNREGA and JAM or Jan Dhan-Adhaar-Mobile initiative

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