Open Forum
New Delhi, 25 April 2013
Inclusive Growth
AN ELECTION SLOGAN?
By Dr.S.Saraswathi
(Former Director, ICSSR, New Delhi)
Narendra Modi’s “development mantra” flaunted by him in recent speeches is countered by his
Congress opponents raising the issue of “inclusive growth” for the forthcoming
general elections. Variously termed as “development
with equity” or “accessible development”, this dimension of economic reforms
has acquired enhanced significance as a poll issue.
However, the concept of “inclusive growth” is not any new
innovation. It was spelt out as a goal
of the 11th Plan (2007-12) and strategic initiatives to reach the target
are also being taken. The current 12th
Plan also focuses on “inclusive growth” to bring more
and more poor and marginal groups under its ambit. It has adopted “faster, sustainable, and more
inclusive growth” as the key development paradigm.
In fact, the importance of social sector planning as part of
economic planning has been acknowledged long time back. It is intended to ensure that the benefits of
economic planning reach all sections. Basically, inclusive growth means
comprehensive and broad-based, shared and pro-poor growth. It is oriented to the clientele as much as to
the substance of growth and hence people-oriented.
Importantly, it aims at reducing the rate of poverty and
disparities, removing deprivation, and also enhancing the involvement of people
in the growth process. Inclusive growth
is more concerned about the impact of development on the life of the poor more
than on the total growth of goods and services in the country. It is therefore, a socio-economic concept.
Besides, growth is quantitative and is indicated in GDP. Inclusive
growth adds qualitative element to it and is reflected in the Human Development
Index.
Rahul Gandhi recently spoke of his vision of inclusive
development in his inter-action at the annual CII meeting in New Delhi.
He sought partnership with the
corporate sector, but deprecated what he termed as the “politics of alienating
communities”. He claimed that the UPA Government
had achieved faster growth because it lessened tension between
communities.
The Congress No 2 leader himself criticized the existing system
for keeping the aam aadmi away from
decision-making, a situation which would be remedied by an inclusive system of
management.
As it stands, India’s quest for inclusive
development has been going on for several decades. It is carried on in various names and in
different forms. Social justice, reservation
policy, decentralization, Panchayati Raj and empowerment of women are some of
the results of this policy of inclusiveness pursued by all Governments. The policy underlies the Constitution itself,
and is specifically incorporated under the Directive Principles of State Policy.
Notably, in the context of economic reforms and
globalization, inclusive growth needs to be specially stressed. For, there is a genuine fear that reforms are
likely to leave the poor untouched or even exploited.
Primarily, because the term “economic growth” is a
quantitative term signifying increase or decrease in the value of goods and
services produced. The term “economic
development” takes into account the mode of production and distribution and
hence qualitative. Though the terms, in
common parlance, are used interchangeably, there is a difference between them.
Clearly, growth is necessary for development and is indeed a
vital part of it, but development is wider and touches the common man more
intimately.
The Millennium Development Goals (MDG) adopted by several
countries including India
has set eight targets to be reached by 2015.
They include eradication of poverty and hunger, achievement of universal
primary education, promotion of gender equality, empowerment of women,
reduction in child mortality, improvement in maternal health, combating
HIV/AIDS, malaria and other diseases, ensuring environmental sustainability and
global partnership for development.
True, economic growth which focuses on rising income is
necessary, but not sufficient to reach all these MDGs. The need of the hour is that all services
should reach the poor people. This
accessibility is the true indicator of inclusive development. It is another
name for human development approach.
Further, an indispensable element of this is enlargement of
people’s choice. It can be achieved only
when growth and equity are simultaneously pursued, and productive economic
opportunities are open to the poor and vulnerable sections as for the rich.
Consequently, financial inclusion is a key area in this.
It is achieved by the process of ensuring access to
financial services and timely and adequate credit where needed by vulnerable
groups such as weaker sections, marginal farmers, etc.
In addition, forcible acquisition of land for development
projects, eviction and relocation of
people to make room for industrial expansion, submergence of villages for
construction of dams, deprival of forest tribes of their traditional rights so
as to establish a common system of law
and administration are some of the major
reasons giving rise to the demand for
inclusive development.
Undeniably, project-affected people generally nurse a grievance
that the benefits of the projects would go elsewhere. Therefore, we not only need big projects but also
have to ensure that benefits are widely shared.
Resettlement of project-displaced people must get priority over other issues.
The present trend of cornering of public amenities ---
water, energy etc --- by the well-to-do must give way to amenities for
all. Health care, education, sanitation,
transport, etc. should be equally accessible to all. Law, justice, police, and public
administration should look upon every citizen without fear or favour. All these are essential ingredients of the
policy of inclusiveness.
Indisputably, in India’s present day politics,
inclusive growth is often equated with populist policies and programmes. Namely,
subsidies, loan waiver schemes, freebies, direct cash transfer, food
security schemes, small unskilled employment guarantee schemes offered by the Union and State Governments are mistaken as pro-poor
strategies for equitable distribution of resources and services.
However, these are only clutches, a means to an end, and
should be short-term arrangements to tide over crisis situations. They must be designed to help recipients
build their capacities to stand on their own.
In sum, what we witness today is bitter competition among political
Parties in expanding their pattern of largesse but there is little effort to
see that development is total. Clearly,
all regions, States, rural and urban areas, every economic sector and all
communities must be part of the development process and also the beneficiaries.
Sadly, inclusive growth has become a mere election slogan
like Garibi Hatao! ----- INFA
(Copyright,
India News and Feature Alliance)
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