Policy Proposal: Foreign Aid to India

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Executive Summary: The nation of India is known for its growing economic dominance as well as recent tourist booms, which continue to bring in revenue for the country. On the other end of spectrum, the same country has an estimated 36% of the worlds poor, many of which live under an insufficient 2 dollars a day. Throughout this proposal, I offer a detailed view of what the nation has done wrong, and how foreign aid can eradicate one of the world’s biggest issues in a short course of time.

Specific Development Program: Eradicating extreme poverty in the Madhya Pradesh region of India.

Statement of Issue:
It is no secret that India is now known as one of the fastest growing economies in the world, but in Madhya Pradesh, containing over 75 million inhabitants (making it India’s sixth most populated state). Along with growing population, the number of malnourished children has gone up from 53.55 to 60 percent, while the number of anemic women has gone up from 47 to 57 percent.

India is measured to have 36% of the earth's poor. The World Bank identified that 32.7% of all individuals in the nation of India fall below the global poverty line of U.S. $ 1.25 per day. A projected 67.8% of India’s population lives on less than US $2 per day. Amartya Sen defined poverty to be a deprivation to the access of basic capabilities. In these terms, the number of impoverished people in India amounts to a staggering 300 million (Eleventh National Development Plan). Although this quantity has shown a slow decrease, almost one third of India’s population of more than 1.1 billion continues to live below the poverty line, and a large percentage of those who are impoverished live in rural areas, like Madhya Pradesh. Poverty conti...

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...ations given elsewhere for items like fertilizers etc. India also needs to implement a much more operational tax system as its private sector continues to grow exponentially. This will present the country enough time to finance the right pro poor policies and examine how efficient they are over the course of time.


Truth be told, implementing new jobs presents new trials and altering an entire system is not as easy as it sounds in theory. In a nation experiencing such an intense transition such as India, now is more crucial then ever. The state of Madhya Pradesh has lagged behind the developing world for long enough and the government has shown their true colors in their limited concern for the states well being. It is up to the international community to put weight onto any nation that fails to provide its own with basic rights and tools to survival.
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