Current Relevance of a New Economy for Inclusive Development

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27 Dec Current Relevance of a New Economy for Inclusive Development

Posted at 27 Dec 2023 in Current Affairs by
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(This article is from ‘Institute of New-Economy Thinking’, ‘Official website of the Ministry of External Affairs, Government of India’, ‘United States Agency for International Development’, ‘The Hindu’, ‘Indian Express’, ‘Sansad TV program Sarokar’, Brief summary of the accompanying editorials of ‘ Energy and Environment   , an interdisciplinary journal that invites energy policy analysts, natural scientists and engineers, as well as lawyers and economists to contribute to mutual understanding and learning‘  and ‘PIB ‘ This plan also includes suggestions from the PLUTUS IAS team . This article   is specifically related to the ‘ Indian Economy and Development, Growth and Employment, Sustainable and Inclusive Development and Environment and Ecology’ section of the UPSC Civil Services Examination . This article is related to the ‘Daily Current Affairs’ section. Relates to ‘ Relevance of a New Economy for Inclusive Development ‘ ).

General Studies: Indian Economy and Development, Growth and Employment, Sustainable and Inclusive Development and Environment and Ecology.

Why in discussion/ News ? 

“May everyone be happy and may everyone be healthy. Let all look for the good, and let no one suffer.” That is, “May all human beings in this entire world be happy, may all be free from disease, may all witness the good of each other and may no one suffer in this world.” This proverb , written in ancient Indian scriptures, wishes the welfare and happiness of the entire creature. The concept of ‘inclusive development’   is not new in the Indian context . If you observe the ancient scriptures, they also contain the sense of taking all people together and since the time of development of Indian civilization (ancient times) who believed in the concept of ‘ Vasudevam Kutumbkam’ and he called the entire world ‘Vasudevam Kutumbkam’ That is,   it has been a country that believes in ‘one family’ namely India has always considered this entire world human civilization as a family or mutually related / allies and this is also affirmed in Indian theologies.of sustainable and inclusive development at the recently concluded G20 meeting hosted by India India has drawn the attention of developed and developing countries all over the world towards the need for the development of a new economy. During the hosting and meetings of the G20, the Prime Minister of India used  the motto ‘Vasudevam Kutumbkam’ for the G20, which meant ‘One Earth, One Family, One Future . “ This aptly reflects our vision for the G20 Presidency. The whole earth is like a family to us. In any family, the future of each member is closely linked to that of every other member. So, when we work together, we move forward together, leaving no one behind . ”  

Key objectives/Priorities of a new economy for inclusive growth:

The priorities of the G20 meetings were also the following –

  • Inclusive, equitable and sustainable development.
  • Life (lifestyle for the environment).
  • Women Empowerment.
  • Digital public infrastructure and technology – enabling growth in sectors ranging from health, agriculture and education to commerce.
  • Skills-Mapping, Culture and Tourism, Climate Finance, Circular Economy, Global Food Security, Energy Security, Green Hydrogen, Disaster Risk Reduction and Adaptation.
  • Development cooperation, the fight against economic crime, and multilateral reform.

This concept of development emerged in a new form after ‘globalization’ arising from liberalization in the nineties because during liberalization, global economies got an opportunity to join together and this concept went out of the scope of countries and states and gained its importance in the global context. Was successful in maintaining. In India too, under liberalization, privatization and globalization in the nineties, India also moved towards a new economy under inclusive development and maintained its importance in the global context. At present, India is the fifth largest economy in the world, which is moving towards becoming the third largest economy in the world in the coming few years. 

Meaning of inclusive development:

The meaning of inclusive development can be understood on the basis of the following criteria – 

  • Inclusive development is taken to mean such development which creates employment opportunities and which proves helpful in reducing poverty.
  • It includes providing equality of opportunity and empowering people for education and skills, that is, it includes promoting development with equality of opportunities.
  • A form of development that not only creates new economic opportunities, but also ensures equitable access to such opportunities for all sections of society.
  • Objectively, inclusive development refers to a situation where high growth rates of GDP per capita are reflected in high growth rates of GDP, accompanied by reduction in inequality between the distribution of income and wealth.
  • Inclusive development focuses on providing basic amenities to all sections of the population, i.e. housing, food, drinking water, education, health as well as generating means of livelihood to live a dignified life. Along with all this, it is necessary to take care of environmental protection for inclusive development because development done at the expense of the environment can neither be called sustainable nor inclusive.

Initiatives taken by the government for new economy and inclusive development:

  • The concept of inclusive development was first introduced in the 11th Five Year Plan. The 11th Five Year Plan continued from the year 2007 to 2012 and was the second last Five Year Plan of India . The theme of which was – “Rapid and more inclusive development”. In this plan, the concept of inclusive development was introduced. It was said to improve the quality of life of all sections of people and provide them equality of opportunities.
  • The 12th Five Year Plan (2012-17) completely focused on inclusive growth and its theme was – “  Rapid, Inclusive and Sustainable Development” . In this plan, special emphasis was given on poverty, health, education and providing livelihood opportunities. So that the growth rate of 8 percent prescribed in the plan can be achieved.
  • Many schemes have been launched by the government to achieve inclusive development. These include- ‘ Deendayal Antyodaya Yojana’, ‘Integrated Child Development Programme’, ‘Mid-Day Meal Scheme’, ‘MNREGA’, ‘Sarva- Education campaign’ etc.
  • Keeping women in mind, schemes like ‘ Start-up India’, ‘Support to Training and Employment Program for Women ‘  have been started by the government. Apart from this, schemes like ‘ Women Entrepreneurship Forum’ and ‘Pradhan Mantri Kaushal Vikas Yojana’ have been started by the government. Efforts also include financial inclusion efforts for women.
  • Many initiatives/schemes have also been started by the government for financial inclusion. These  include important schemes like ‘ Mobile Banking’, ‘Pradhan Mantri Jan Dhan Yojana’, ‘Pradhan Mantri Mudra Yojana’, ‘Senior Pension Insurance Scheme’ etc. Has been done
  • Steps like Disability Act 1995, National Trust for Welfare Act 1999, SIPDA, Sugamya Bharat Abhiyan, Swavalamban Yojana and the Rights of Persons with Disabilities Rules, 2017 have been taken by the government to include the persons with disabilities in inclusive development.
  • ‘Soil-Health-Card’, ‘Neem-Coated-Urea’, ‘Pradhan Mantri Krishi-Irrigation Yojana’, ‘Pradhan Mantri Fasal-Bima-Yojana’  have been launched by the government to promote financial inclusion in agriculture sector and for farmers . And important schemes like ‘National Food Security Mission’ are being implemented.

Methods of measurement of inclusive development:

Measuring a nation’s progress based on the progress of its poorest segment, i.e. measuring per capita income based on the progress of the bottom 20 percent of the population, is the best way to measure inclusive growth.

  • An indicator of healthy inclusive development is that if there is an increase in per capita income then it is an indicator of healthy inclusive development.
  • If a country or state has to achieve high growth rate, then the weakest sections of the society will also have to be included in the mainstream pace of development. The concept of inclusive development depends on this.
  •  

 

Need for inclusive development: Relevant in the present times.

No country can develop in the absence of inclusive development. Inclusive development is not only economic development but it is also a social and moral imperative of economic development. The importance of inclusive development in the context of the development of the new economy can be understood on the basis of the following context – 

  • Inclusive growth is essential for sustainable development. Therefore, if development is not sustainable then a situation of decline will arise in the economy.  
  • Due to imbalance in income distribution, wealth will be concentrated in a few people, as a result demand for goods will decrease and GDP growth rate will also decrease. If there is no inclusive development, there will be imbalance in income distribution.  
  • Due to lack of uniform inclusive development, inequality increases in different parts of the country due to which the deprived sections are not able to join the main stream of development.
  • Disruptive tendencies like communalism, regionalism, racial and ethnic violence within the geographical boundaries of any country are born due to lack of inclusive development, which sometimes creates a situation of dissatisfaction in the country, as a result of which the geographical boundaries of the country deteriorate. Disruptive tendencies like communalism and regionalism are born .

Challenges before inclusive development:

  • Migration towards urban areas is having a negative impact on the agricultural economy due to which agricultural productivity is decreasing.
  • Due to lack of basic facilities in villages, people migrate from villages to cities. Due to this, population pressure increases in cities.
  • There is still a need to create permanent and long-term employment sources in rural areas because MNREGA and many other such employment related schemes are being implemented in rural areas but these cannot be included as permanent sources of employment.
  • Corruption also has a negative impact on the country’s economy by hindering the pace of inclusive development.

Conclusion / path to solution / path forward: 

At present, if the goal of rapid inclusive growth is to be achieved in India, then there will be a need to pay special attention to the agriculture sector, because the United Nations has set a target of eliminating all forms of poverty (unemployment, low income, poverty etc.) by the year 2030. The target is specified in Goal 1 of the Sustainable Development Goals. Since the agricultural sector in India provides employment to half of the total labor force. Apart from this, the government had also set a target of doubling the income of farmers by the year 2022, but the per capita productivity in this area is very low due to which it is associated with the highest area of ​​poverty. However, in a country with a large population like India, the biggest challenge is how to spread the benefits of development to all sections and all sections of the society and this is where the role of appropriate use of technology comes into play. The recently launched ‘Digital India Programme’ is a good initiative to face this challenge. Therefore, India is poised to become the leader of the G20 group of countries in developing a new economy for inclusive growth and the third largest economy in the world, growing at a very fast pace . Which is a sign of the bright future of India’s strong and new economy among the countries with developed economies globally . 

PRACTICE QUESTIONS FOR PRELIMINARY EXAM:

Q.1. Consider the following statements in the context of development of a new economy for inclusive growth.

  1.  The global agenda of sustainable development is possible only when all countries fulfill their share of responsibilities .
  2. India is one of the few countries in the world where forest and tree covered areas are continuously increasing despite the development process. The extent of tree covered area in India has reached 80.73 million hectares which is 24.6 percent of the total geographical area of ​​the country.
  3. The agenda of the Rural Development Program revolves around its development mantra – “Sabka Saath, Sabka Vikas” (inclusive development), which aims to ensure that the benefits of development reach the poor and deprived sections.
  4. Deen Dayal Upadhyaya Jyoti Yojana aims to provide electricity at affordable rates and focus on green energy, clean energy to increase the power supply.
  1. Only 1, 3 and 4
  2. Only 2 and 4
  3. Only 1, 2 and 4
  4. All of these.

Which of the above statement(s) is/are correct? 

Answer – (d)  

PRACTICE QUESTIONS FOR MAIN EXAM:

Q.1. In a New economy for inclusive growth, can technological change create an inclusive future of work and promote inclusive growth? How can pollution be addressed while considering inequalities and injustices in the vision of inclusive development?

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