INCLUSIVE GROWTH

INCLUSIVE GROWTH
INCLUSIVE GROWTH
Inclusive growth basically means, Broad based growth, shared growth, and pro-poor growth.








A/c to Oxford Dictionary word Inclusive means "not excluding any section of society"
Now let have a brief look on what all these meant for


PaticularsMeant for

Broad Based GrowthGrowth of broad spectrum of things or people

Shared GrowthFocus on income distribution scheme

Pro-poor GrowthWelfare of the poor

Relative Pro-poor Growth - if and only if the incomes of poor people grow faster than those of the population as a whole, i.e., inequality declines.

Absolute Pro-poor Growth - can be the result of direct income redistribution schemes, for growth to be inclusive, productivity must be improved and new employment opportunities created.


Inclusive Growth


* Inclusive growth is defines as a growth process which yields broad based benefits & ensures equality of opportunity for all.

* Inclusive growth is broad based & implies an equitable allocation of resources with benefits accruing to every section of society.

* Inclusive growth is aimed at poverty reduction, human development, health & provides opportunity to work & be creative.

* The allocation of resources must be focused on the indented short & long terms benefits & economic linkage at large & not equitable mathematically & some regional & population criteria.
Characteristics of Inclusive Growth



Need for inclusive growth -

* Inclusive growth is necessary for sustainable development & equitable distribution of wealth & prosperity.

* In India (Democratic Country) bringing 600 million people living in rural India into the mainstream is the biggest concern.




Factors encouraged India to concentrate more on inclusive growth


* India is the 7th largest country by area & 2nd by population, 12th largest economy at market exchange rate & 4th largest by PPP. Yet, India is far away from the development of the neighborhood nation (China)

* The exclusion in terms of low agriculture growth, low quality employment growth, low human development, rural urban divides, gender & social inequalities & regional disparities etc are the problems for the nation.

* Reducing of poverty & other disparities & raising of economic growth.

* Level of scientific literacy of political leadership in India is very low.

* Corruption in India amounts to over 10% of GDP.

* High ratio of child labor.

* Low literacy level

* Urgent need to change out dated philosophies & allegations in economic reforms by the politicians & opposition parties in India

* Achievement of 9% of GDP growth for country as a whole is one of the boosting factor to give importance to inclusive growth.

* Inclusiveness target to

* Income & poverty

* Education

* Health

* Women & children

* Infrastructure

* Environment

Elements of Inclusive Growth

According to MMS, the key components of the inclusive growth strategy included a sharp increase in investment in rural areas, rural infrastructure & agriculture spurt in credit for farmers, increase in rural employment through a unique social safety net & a sharp increase in public spending on education & health care.

5 interrelated elements of Inclusive Growth are:








Others elements are -


* Achievement of 119th rank among 170 countries on HDI.

* Social indicators are much lower for SC & STs.

* Malnutrition among children.

* Economy is facing under savior pressure due to global recession.

* Increase in regional disparities.

Problems before Inclusive growth strategies in India

Poverty


* Poverty Line 356.35 Rs. or appx. $7 per month in rural areas.

* The World Bank estimates that 456 million Indians (42% of the total Indian population) now live under the global poverty line of $1.25 per day (PPP).

* However, this also represents a significant decline in poverty from 60 percent in 1981 to 42 percent in 2005, although the rupee has decreased in value since then, while the official standard of 538/356 rupees per month has remained the same = Income Inequality

* On the other hand, the Planning Commission of India uses its own criteria (based on Tendulkar committee)


PercentExisting MethodologyTendulkar Methodology

RuralUrbanCombinedRuralUrbanCombined

1993-9437.332.436.050.131.845.3

2004-0528.325.727.541.825.737.2





In 2011-12, India had 270 million persons below the Tendulkar Poverty Line as compared to 407 million in 2004-05, that is a reduction of 137 million persons over the seven year period.




Employment

Employment considered as one of the big problems for inclusive growth in India.
For India real picture would be like -
Increase in Population = increase in unemployment =ceased development of country= increased in poverty= increase in illiteracy= overall fall in GDP growth

Unorganized employed people in India are around 85%. Workers in this sector do not have social security. The generation of productive employment for labor force in the economy, as employment is a key to inclusive growth is the toughest task for the country. The country is also facing in employment generation in all sectors, regions and for all socio economic groups particularly for poorer sections of population, backward regions, lagging sectors and SC/ST/OBC/women etc.

Agriculture

Traditionally, India is considered as the agricultural based country. The recent developments in the other sectors decreased this major sectors growth. Some of the problems in Indian agriculture are:


* Long term factors like steeper decline in per capita land availability, shrinking of farm size

* Slow reduction in share of employment.

* Low labor productivity in agriculture and the gap between agri. and non-agri. iswidening.

* Decline in yield growth due to land and water problems, vulnerability to world commodity prices, farmers suicides.


* Disparities in growth across regions and crops, i.e., growth rate declined more in rain fed areas.

* Thus these problems became the hurdles in the key area for the economic development of the nation, i.e., agriculture.

Problems in Social development

Social development is also one of the key concerns in inclusive growth. Social development also facing some problems, which is making the path critical to inclusive growth in the country, these are:

* Significant regional, social and gender disparities

* Low level and slow growth in public expenditures particularly on health

* Poor quality delivery systems

* Social indicators are much lower for scheduled castes and scheduled tribes.

* Malnutrition among children is one major problem.

* Since BPO brought the multi culture environment in India, this sector is facing under seviour pressure due to global recession.

* Social advancements in India is still at lower growth due to the strong influence of culture and regional disparities


Regional Disparities

Regional disparities are also a major concern for India due to different culture and traditions.
Traditional culture + Caste system +Rich & poor feelings = Increased regional disparities

Some of the regional disparities problems are:


* Per capita income is highest at Rs.16679 in Punjab and lowest per capita income is at Bihar with Rs.3557.

* Female infant mortality varies from 12 in Kerala to 88 in Madhya Pradesh.

* Female literacy varies from 33.6% in Bihar to 88% in Kerala.

* Richer states grew faster than the poorer states

Challenges before inclusive growth strategies in India

Poverty alleviation
Agriculture growth
Unemployment
Child labor
Social development
Education

Initiative of Govt. of India towards Inclusive growth

Rural Infrastructure (Bharat Nirman)
Employment (MGNAREGA)
Regional Development (Backward district development Plan)
Education (Sarva Shiksha Abhiyan)
Rural Health (NRHM)
Urban Infrastructure (National urban renewal Mission)












Bibliography
http://en.wikipedia.org
http://www.ijacl.org
http://www.factualworld.com
http://www.lawyersclubindia.com
http://planningcommission.nic.in
http://www.economictimes.com
http://www.hindu.co.in
http://www.isidelhi.org.in

by Priyanka Chauhan

POLICY MAKERS=G20 SUMMIT

POLICY MAKERS=G20 SUMMIT
G20 is the annual meet by the top 20 economically rich countries (having 80% total trade volume & 2/3 of population)at global platform to discuss about economic reforms and financially stability and sustainability which is based upon the higher investment ,trust & transparency and on regulation of market polices and practice.
Main motive is to strengthen the growth(growth in a sustainable way =debt free growth) and Development which is implemented through St Petersburg Action Plan= strategies to achieve strong, sustainable and balanced growth and boost economic activities, support the recovery and address near-term risks to the outlook.
MAJOR CHALLENGES IN GLOBAL ECONOMIC-

* Fiscal unsustainability.

* Unemployment and underemployment particular among the young people.

* Cross border tax evasion & erosion due to corruption.

* Inclusive growth=0

* Financial market fragmentation in Europe=impact on money outflow. (in case of developing countries it cause financial tightening ,volatile money outflow ,commodity price volatility)

* Monetary policy stability (as in recent cases due to federal reserve of USA ,monetary policy tighten suddenly causes Rupee depreciation in India).

* Incomplete rebalancing of global demand.

* Insufficient levels of private investment in many countries due to continuing market uncertainties, as well as internal rigidities.
G20 MEETINGS AND THEIR CONCLUSION-

2008- Washington DC(1st meeting)
* provide liquidity, strengthen the capital of financial institutions.
* short-term liquidity facility.
* Promoting Integrity in Financial Markets.
* Reinforcing International Cooperation & Financial Institutions.
* reducing systemic risks in credit derivatives markets.

2009-London
* restore confidence, growth, and jobs.
* repair the financial system to restore lending.
* strengthen financial regulation to rebuild trust.
* reform our international financial institutions to overcome crisis.

2009: Pittsburgh
* Framework for Strong, Sustainable, and Balanced Growth.
* Strengthening the International Financial Regulatory System.
* Reforming in Mission and Governance of the IMF.

2010: Toronto
* Financial Sector Reform.
* International Financial Institutions and Development.
* Fighting Protectionism and Promoting Trade and Investment.
* Capital and Liquidity.
* Financial Market Infrastructure and Scope of Regulation.

2010: Seoul
* Seoul Development Consensus for Shared Growth.
* Fossil Fuel Price Volatility.
* G20 Anti-Corruption Action Plan.
* Multi-Year Action Plan on Development Infrastructure.
* Private Investment and Job Creation assures for regional integration.

2011: Cannes
* Strengthening IMF surveillance.
* Implementing and deepening Financial sector reforms.
* Cannes Action Plan for Jobs and Growth.
* Strengthening the Medium-Term Foundations for Growth.

2012:Los Cabos, Mexico
* green infrastructure, energy and water efficiency.
* financing the fight against climate change.
* Decentralized Wastewater Treatment Plant.


2014 G20 SUMMIT-HOSTED IN TROIKA & AUSTRALIA WILL CHAIR THE G20.


2013 St.Petersburg-IMPLEMENTATION & CONCLUSION .. in detail..


MAJOR IMPLEMENTATION DURING 8TH G20 SUMMIT 2013-
1.GROWTH THROUGH JOBS(in case of INDIA ,JOBS instead of quality jobs is worth ..:D)-
Major contribution of the B20 and the L20.(B20 is the business community for shares in investments and creating new jobs.)

* Improve business environment and stimulate the creation of more jobs.

* To make targeted reforms in product and labour market.

* Government initiatives and policies-(through financial investment & coordination) RECENTLY ministry of labour and employment & ministry of finance came upon to share a platform to make new reforms and create more and more sustainable jobs & growth.

* Improve job quality=working conditions, wage bargaining frameworks through national wage-setting systems, and access to social protection.

* Integrating the national policies => create quality growth through the higher production.

* G20 Task Force on Employment- ways to address labour market and employment challenges & source of information for the economic analyses.
2.FINANCING FOR INVESTMENT=GROWTH RATE INCREASE

* Long term investment=>sustainable growth=>job creation.

* Follow work plan prepared by G20 study group for well-founded, evidence-based policy initiatives.

* Government to promote policies(prudent risk-taking) => promote & encourage institutional investors to finance long term investment.

* Project preparation funds-transparency in the prioritization, planning, and funding of investment projects, especially in infrastructure.

* Public private partnership.

3.ENHANCING MULTILATERAL TRADE=

* Free trade and investment(i.e transparent through WTO)=restoring global growth & sustainable development.(until the end of 2016-being fully committed to further progress in removing barriers and impediments to global trade and investment & to roll back new protectionist measures.) SUCCESSFUL OUTCOMES -

WTO Ministerial Conference (MC9) In Bali
* trade facilitation
* elements of agriculture and development issues

Doha Development Agenda negotiations In Doha
* new confidence in successful post-Bali Doha round negotiations.


* Regional trade agreements(RTAs)=advancing towards more transparency in multilateral trade.

* Transparency in Trade (TNT)= which will provide for open use of the trade policy data and analysis system to identify new trade opportunities and facilitate trade flows.
PARTNERS ARE=


* Global Value Chains (Gvcs)= GVCs for growth, industrial structure, development and job creation.


4.HANDLE TAX AVOIDANCE=Promote Transparency

* G20/OECD BEPS project- Reduce artificially shifting profits to low-tax jurisdictions.

* Multilateral and bilateral exchange of information.

* The Development Working Group in conjunction with the Finance Track.
5. INTERNATIONAL FINANCIAL ARCHITECTURE-

* ratification of the 2010 IMF Quota and Governance Reform

* IMF-RFA cooperation(International Mutual Funds Regional Financing Arrangement)=>Financial Ministry and Central Banks to follow such norms.

* Public Debt Management-need for raising, managing, and retiring public debt, including on state guarantees.

* IMF-World Bank Debt Sustainability =Framework for Low-Income Countries=> promote sustainable financing and sustainable growth and development through appropriate channels.

* local currency bond markets (LCBMs).
6. Promoting Development=adopted at Seoul Multi-Year Action Plan on Development (MYAP) in 2010

* strong, sustainable, inclusive and resilient growth and narrowing the development gap.

1. Food Security=>1.Secure Nutrition Knowledge Platform.
2.Food Security through Social Safety Nets & Risk Management.

* Infrastructure-Assessment of Project Preparation Facilities (PPFs) for Infrastructure in Africa.

* Financial Inclusion-Global Partnership for Financial Inclusion (GPFI) to strengthen financial inclusion.

* Human Resource Development-Global Public-Private knowledge sharing platform on skills for employment.

* Inclusive Green Growth-G20 Dialogue Platform on Inclusive Green Investments for sustainable development and poverty eradication.
Saint Petersburg Accountability Report on G20 Development Commitments= progressive achievement

NAME-ANAM SINGLA

REFERENCE - G20 LEADERS DECLARATION 2013(case study)
EUCO press report
B20G20 PARTNERSHIP FOR GROWTH AND JOBS (case study)