Influence of Micro Insurance Towards Poverty and Vulnerability in India

ECONOMICS

The conditions for growth and the degree of inequality are two key factors that determine the extent of poverty reduction from per capita economic growth. The lower the inequality levels the more positive effect economic growth has on poverty levels. The link between economic development and human development is dependent on the effectiveness of countries to convert income into better lives for all their citizens. The international development target of halving the proportion of people living in extreme poverty by 2015 can be attained by low-inequality countries without any change in their growth pattern and with lower growth rates. However, high-inequality countries will only reach the target if growth is pro-poor and significantly higher than in the past (twice that of low-inequality countries). If all countries belonged to the low inequality group then a forecasted growth of four per cent per annum would realize the target as early as 2005. So, this paper explores the idea of development and reduction of poverty, vulnerability and inequality by micro insurance in India.

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