Comparing Median Income & Wealth Data For India & Pakistan

[RiazHaq]

http://www.riazhaq.com/2017/01/comparing-median-income-wealth-data-for.html


Top 1% of Indians own 58% of wealth in India, according to a recent report by Oxfam as published by Wall Street Journal. The report said the global average for wealth ownership of the top 1% is 51%.


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[TD="class: tr-caption, align: center"]Source: Oxfam[/TD]
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The income and wealth concentration in the hands of the richest top 1% skews the average per capita incomes and makes the material well-being of average citizen look better than it is. The best way to measure how well or poorly an average citizen is doing is to look at the median income and wealth, not the average or mean.

Median Incomes in South Asia:

Centre for Global Development has estimated 2014 median incomes of countries around the world. Here's what it reported for India and Pakistan:

Pakistan: Median Income per capita: $1204.50, Median Household Income: $6,022.50 Mean (Average) per capita $4,811.31

India Rural: Median per capita $930.75 Median Household $4,653.75 Mean (Average) per capita $5,700.72

India Urban: Median per capita $1295.75 Median Household $6,478.75 Mean(Average) per capita: $5,700.72

It shows that India's urban median income is slightly higher than Pakistan's median income. However, India's rural median income is significantly lower than Pakistan's. It should be noted that 70% of India's population lives in rural areas, much higher than Pakistan's 61%, according to the World Bank.

Median Wealth in South Asia:

Average Pakistani adult is 20% richer than an average Indian adult and the median wealth of a Pakistani adult is 120% higher than that of his or her Indian counterpart, according to Credit Suisse Wealth Report 2016. Average household wealth in Pakistan has grown 2.1% while it has declined 0.8% in India since the end of last year.

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[TD="class: tr-caption"]Source: Credit Suisse Wealth Report 2016[/TD]
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Here are the key statistics reported by Credit Suisse:

Total Household Wealth Mid-2016 :

India $3,099 billion Pakistan $524 billion

Wealth per adult:

India Year End 2000 Average $2,036 Median $498.00

Pakistan Year End 2000 Average $2,399 Median $1,025

India Mid-2016 Average $3,835 Median $608

Pakistan Mid-2016 Average $4,595 Median $1,788

Average wealth per adult in Pakistan is $760 more than in India or about 20% higher.

Median wealth per adult in Pakistan is $1,180 more than in India or about 120% higher

Summary:

The income and wealth concentration in the hands of the richest top 1% skews the average per capita incomes and makes the material well-being of average citizen look better than it is. The best way to measure how well or poorly an average citizen is doing is to look at the median income and wealth, not the average or mean. Median income and wealth figures in South Asia show that average Pakistanis are better off economically than their counterparts in India.


http://www.riazhaq.com/2017/01/comparing-median-income-wealth-data-for.html

 

[nepali.nationalist]

yaani kay ch@ddi pehlay bhi bhikari tha aur ab bhi bhikari hi hai .....ache din anay kay baad bhi [hilar][hilar][hilar]

 

[nepali.nationalist]

abey OH bhikari ...shabaash idher aaa aur yeh credit suisse ki research ka jawab day ...abhi to remitances bhi Pakistani boht kertay hain Endia mein....Kuch sherm ker !:biggthumpup:

 

[Dawood Magsi]

And thats Pakistan's income is after over 16 Years of war of Terror and 10 years of most corrupt Govt in history of Pakistan. Just imagine the potential of this nation under a genuine honest leader.

 

[RiazHaq]

The Income Of The Average Indian Is Significantly Lower Than The Average Income Of India


http://swarajyamag.com/economy/the-...cantly-lower-than-the-average-income-of-india


"As Charles Wheelan writes in Naked Statistics: “The mean, or average, turns out to have some problems in that regard, namely, that it is prone to distortion by “outliers”, which are observations farther from the center.”


So basically, the Ambanis, Adanis, Birlas and Tatas, of the world, essentially India’s rich, push up the average income of India i.e. the per capita income. As Wheelan writes: “The average income...could be heavily skewed by the megarich.”


In this scenario, the average income does not give us a correct picture. Further, it is safe to say, that the income of the average Indian is lower than the average income of India.


At this point it is important to introduce another term i.e. the median. As Wheelan writes: “The median is the point that divides a distribution in half, meaning that half of the observation lie above the median and half lie below.”


Hence, the median income is the income of the average Indian. Given this, the median income is the right representation of the income of the average Indian. This is because the rich outliers (the Ambanis, the Adnanis, the Tatas and the Birlas) are taken into account. Data from World Bank shows that the top 10 percent of India’s population makes 30 percent of the total income. And this pushes up the per capita income."

 

[RiazHaq]

A 2011 World Bank report titled "Perspectives on poverty in India : stylized facts from survey data"
discusses various causes of high poverty and higher inequality in India, particularly discrimination against certain castes and tribes who make up most of the poor. It describes exclusion based on caste (SC or scheduled caste) and tribes (ST or scheduled tribes) and describes it as follows:

The Hindu hierarchy is said to have evolved from different parts of the body of Brahma—the creator of the universe. Thus, the Brahmans, who originated from the mouth, undertake the most prestigious priestly and teaching occupations. The Kshatriyas (from the arms) are the rulers and warriors; the Vaishyas (from the thighs) are traders and merchants. The Shudras, from the feet, are manual workers and servants of other castes. Below the Shudras and outside the caste system, lowest in the order, the untouchables engage in the most demeaning and stigmatized occupations (scavenging, for instance, and dealing with bodily waste).

Similarly, the scheduled tribes are also referred to as the Adivasis. .... we use the terms SC and ST, as these are standard administrative and survey categories. In the text we use the terms Dalits and Adivasis or tribals interchangeably with SCs and STs, respectively.

http://documents.worldbank.org/curated/en/103691468041447795/Main-report

 

[RiazHaq]

Credit Suisse Global Wealth Report 2016 puts the wealth of India's top 1% at 58.4%, pretty close to what Oxfam does.



[FONT=&quot]The share of the top 1% is up from 53% last year. In the last two years, the share of the top 1% has increased at a cracking pace, from 49% in 2014 (when Modi became PM) to 58.4% in 2016. [/FONT][FONT=roboto slab, serif]
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[FONT=roboto slab, serif]http://www.livemint.com/Money/MML9O...chest-1-of-Indians-now-own-584-of-wealth.html[/FONT]

 

[RiazHaq]

#Pakistan’s Middle Class Soars as Stability Returns - WSJ. #economy #middleclass
https://www.wsj.com/articles/pakistans-middle-class-soars-as-stability-returns-1485945001

Pakistan, often in the headlines for terrorism, coups and poverty, has developed something else in recent years: a burgeoning middle class that is fueling economic growth and bolstering a fragile democracy.

The transformation is evident in Jamil Abbas, a tailor of women’s clothing whose 15 years of work has paid off with two children in private school and small luxuries like a refrigerator and a washing machine.

For companies like the Swiss food maker Nestl SA, such hungry consumers signal a sea-change.

“Pakistan is entering the hot zone,” said Bruno Olierhoek, Nestl’s CEO for Pakistan, saying the country appears to be at a tipping point of exploding demand. Nestl’s sales in Pakistan have doubled in the past five years to $1 billion.

Although often overshadowed by giant neighbors India and China, Pakistan is the sixth most-populated country, with 200 million people. And now, major progress in the country’s security, economic and political environments have helped create the stability for a thriving middle class.

An unpublished study last year that measured living standards, from Pakistani market research firm Aftab Associates, found that 38% of the country is middle class, while a further 4% is upper class. That’s a combined 84 million people—roughly equivalent to the entire populations of Germany or Turkey.

Such households are likely to have a motorcycle, color TV, refrigerator, washing machine and at least one member who has completed school up to the age of 16, the study found. Official figures show that the proportion of households that own a motorcycle soared to 34% in 2014 from 4% in 1991, and a washing machine to 47% from 13% over that same period. These trends are also attracting international business.

In December, Royal FrieslandCampina NV, a Dutch dairy company, paid $461 million to buy control of Engro Foods, a Pakistani packaged milk producer in a country where most milk is sold unpasteurized from open milk containers.

“What we see is consumer spending is rising and a middle class coming up,” said Hans Laarakker, Engro’s new chief executive.

Late last year, China’s Shanghai Electric Power agreed to pay $1.8 billion for a majority of Karachi’s electric supply company; Turkish electrical appliance maker Arelik paid $258 million for a Pakistani appliance maker, Dawlance, saying Pakistan has an “increasingly prosperous working and middle class”; and French car maker Renault SA said it was seeking to set up a plant in Pakistan.

Meanwhile, during the past three years, deaths from terrorist attacks have fallen by two-thirds, as the army battles jihadists. Economic growth reached an eight-year high of nearly 5% in the past financial year, and China has begun a multibillion-dollar infrastructure investment program. The Karachi stock market rose 46% last year and continues to soar.

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In the developing world, the ability to purchase durable goods such as motorcycles—which itself can lead to new opportunities in employment, education and leisure—is generally viewed as an indicator of a middle class lifestyle. Motorcycle purchases soared in Pakistan to 2 million a year now from 95,000 in 2000, leading Honda Motor Co. to double its production capacity there. Buyers of Honda’s cheapest motorcycle typically earn between just $200 and $300 a month, which would put them well below the poverty line in the West, but here that gives them disposable income.

“All these big companies globally, if they’re not looking at Pakistan, need to look at Pakistan, because it’s a huge consumption economy emerging,” said Saquib Shirazi, chief executive of Honda’s Pakistan joint venture.