This is a small compilation of various sources I tired to study for the Inclusive growth and issues arising from it. I will try to present the whole topic in various posts.
First of all what is Inclusive Growth?
In simple words Inclusive growth means broad based growth, shared based growth and pro-poor growth. It decreases the level of poverty in a country and increases the involvement of people into the growth process of the country. Inclusive growth as the literal meaning of the two words refers to both the pace and the pattern of the economic growth. The ‘inclusive growth’ as a strategy of economic development received attention owing to a rising concern that the benefits of economic growth have not been equitably shared. Growth is inclusive when it creates economic opportunities along with ensuring equal access to them. Apart from addressing the issue of inequality, the inclusive growth may also make the poverty reduction efforts more effective by explicitly creating productive economic opportunities for the poor and vulnerable sections of the society (as stated by planning commission 2007).
So Inclusive growth in our country is possible if the targets are set to achieve :
1. rapid growth that reduces poverty and creates employment opportunities.
2. access to essential services in health and education especially to poor.
3. empowerment through education and skill development.
4. extension of employment opportunities using National Rural Employment Guarantee Program
5. environment sustainability
6. reduction of gender inequality
7. improvement in governance.
Now taking each and every point mentioned above.
Rapid growth and Poverty reduction
For rapid growth, it is essential to achieve increase in employment and income for large number of our people. Growth should be balanced in such a way that the job creation is done in industrial and services sector and this must be accompanied with efforts to increase real incomes per-head. And also increase income opportunities for those who remain in agriculture by raising land productivity.
11th FYP's focus on inclusive growth resulted in greater attention to MSE. These enterprises create most of the employment in industry since they are less capital intensive, entrepreneurial and dispersed. The MSME is dedicated to the growth of this sector. This sector contributes 8% of country's GDP, 45% of manufacturing sector's output and 40% of exports.
The ability to generate an adequate number of employment opportunity is one of the major factor on which India's inclusive growth will be measured because India is going through the stage of Demographic Transition. This means that working people will have fewer dependents. This young demographic profile places India in a favorable place in terms of manpower availability and this could prove a great for investment when the industrial world is ageing. Since more women have entered the workforce the unemployment rate has also increased.
Access to Essential Services
Now what do we understand by essential services? They are the basic need of any individual. Yes! Roti, Kapda aur Makan (Manoj Kumar has done much research on the topic though !!) Elaborating this essential need would mean public goods and services and natural resources. Access to health services, food, electricity, roads, credit facilities for investment, education and all what u can think of. Thus in short run access to basic facilities such as health, education, clean drinking water etc impacts directly on welfare, in long run it determines economic opportunities for the future. Thus 11th FYP's vision of reduction of poverty includes major expansion in the supply of these services. There is a massive thrust in this plan on access to education and health through schemes such as National Rural Health Mission, Sarva shikha Abhiyan etc.
Empowerment through Education and Skill Development
The 11th FYP placed agreat emphasis on expanding access to all levels - elementary education, secondary education and higher education - also improving the quality of education. Sarva Shikha Abhiyan is one of the major social sector flagship program addressing the national resolve of Universalization of Elementary Education (UEE). As a result there is a reduction in drop out rate (though not a significant reduction), an increase in Gross Enrollment Rate.
The quality of teaching in our elementary schools is also not what it should be. Teacher absenteeism is widespread, teachers are not adequately trained and the quality of pedagogy is poor. These issues are being tackled by concerned authorities. Besides, there are equality concerns of disadvantaged, vulnerable social groups and urban-deprived groups with regards to access and retention; decentralization of teachers recruitment and decision-making. 11th FYP also began the process to universalize secondary education.
Some of the proposed actions in 11th FYP for secondary education includes the following :
1. Rapid up-gradation of 15000 Upper Primary Schools to Secondary Schools.
2. Establishment of high quality model schools at block level to serve as benchmarks for excellence in secondary schooling though PPP.
3. Provision of Laboratories/ Libraries and also strengthening of the existing facilities available.
4. Provision of hostels and residential schools for girls.
5. A more liberal approach on the part of State Government on allowing private schools to set up to meet the large unmet demand of quality education.
11th Plan also focused on the development of higher education and technical and professional education. GER for India currently is 18.8% which is behind China. (India And US GER Dialogue) A general improvement in the quality of universities is necessary, including up-gradation of facilities and improved methods of teaching. (Please refer to 11th FYP for initiatives taken in education sector)
Skill Development poses major challenges and also open up unprecedented doors for opportunity. The NSS 61st round results shows that among age group of 15-29 only about 2% have received formal vocational training, indicating that very few young persons actually enter the world of work with any kind of formal vocational training. Our Vocational Education and Training system needs to cover more trades. However it is suffering from disabilities such as poor infrastructure, ill-equipped classrooms/laboratories/workshops, below par faculty, absence of measurement of performance and outcomes etc.
In addition to the existing basic problems with the skill development system in the country , the urgency is felt with the demographic changes taking place.
First of all what is Inclusive Growth?
In simple words Inclusive growth means broad based growth, shared based growth and pro-poor growth. It decreases the level of poverty in a country and increases the involvement of people into the growth process of the country. Inclusive growth as the literal meaning of the two words refers to both the pace and the pattern of the economic growth. The ‘inclusive growth’ as a strategy of economic development received attention owing to a rising concern that the benefits of economic growth have not been equitably shared. Growth is inclusive when it creates economic opportunities along with ensuring equal access to them. Apart from addressing the issue of inequality, the inclusive growth may also make the poverty reduction efforts more effective by explicitly creating productive economic opportunities for the poor and vulnerable sections of the society (as stated by planning commission 2007).So Inclusive growth in our country is possible if the targets are set to achieve :
1. rapid growth that reduces poverty and creates employment opportunities.
2. access to essential services in health and education especially to poor.
3. empowerment through education and skill development.
4. extension of employment opportunities using National Rural Employment Guarantee Program
5. environment sustainability
6. reduction of gender inequality
7. improvement in governance.
Now taking each and every point mentioned above.
Rapid growth and Poverty reduction
For rapid growth, it is essential to achieve increase in employment and income for large number of our people. Growth should be balanced in such a way that the job creation is done in industrial and services sector and this must be accompanied with efforts to increase real incomes per-head. And also increase income opportunities for those who remain in agriculture by raising land productivity.
11th FYP's focus on inclusive growth resulted in greater attention to MSE. These enterprises create most of the employment in industry since they are less capital intensive, entrepreneurial and dispersed. The MSME is dedicated to the growth of this sector. This sector contributes 8% of country's GDP, 45% of manufacturing sector's output and 40% of exports. The ability to generate an adequate number of employment opportunity is one of the major factor on which India's inclusive growth will be measured because India is going through the stage of Demographic Transition. This means that working people will have fewer dependents. This young demographic profile places India in a favorable place in terms of manpower availability and this could prove a great for investment when the industrial world is ageing. Since more women have entered the workforce the unemployment rate has also increased.
Access to Essential Services
Now what do we understand by essential services? They are the basic need of any individual. Yes! Roti, Kapda aur Makan (Manoj Kumar has done much research on the topic though !!) Elaborating this essential need would mean public goods and services and natural resources. Access to health services, food, electricity, roads, credit facilities for investment, education and all what u can think of. Thus in short run access to basic facilities such as health, education, clean drinking water etc impacts directly on welfare, in long run it determines economic opportunities for the future. Thus 11th FYP's vision of reduction of poverty includes major expansion in the supply of these services. There is a massive thrust in this plan on access to education and health through schemes such as National Rural Health Mission, Sarva shikha Abhiyan etc.
Empowerment through Education and Skill Development
The 11th FYP placed agreat emphasis on expanding access to all levels - elementary education, secondary education and higher education - also improving the quality of education. Sarva Shikha Abhiyan is one of the major social sector flagship program addressing the national resolve of Universalization of Elementary Education (UEE). As a result there is a reduction in drop out rate (though not a significant reduction), an increase in Gross Enrollment Rate.
The quality of teaching in our elementary schools is also not what it should be. Teacher absenteeism is widespread, teachers are not adequately trained and the quality of pedagogy is poor. These issues are being tackled by concerned authorities. Besides, there are equality concerns of disadvantaged, vulnerable social groups and urban-deprived groups with regards to access and retention; decentralization of teachers recruitment and decision-making. 11th FYP also began the process to universalize secondary education.
Some of the proposed actions in 11th FYP for secondary education includes the following :
1. Rapid up-gradation of 15000 Upper Primary Schools to Secondary Schools.
2. Establishment of high quality model schools at block level to serve as benchmarks for excellence in secondary schooling though PPP.
3. Provision of Laboratories/ Libraries and also strengthening of the existing facilities available.
4. Provision of hostels and residential schools for girls.
5. A more liberal approach on the part of State Government on allowing private schools to set up to meet the large unmet demand of quality education.
11th Plan also focused on the development of higher education and technical and professional education. GER for India currently is 18.8% which is behind China. (India And US GER Dialogue) A general improvement in the quality of universities is necessary, including up-gradation of facilities and improved methods of teaching. (Please refer to 11th FYP for initiatives taken in education sector)
Skill Development poses major challenges and also open up unprecedented doors for opportunity. The NSS 61st round results shows that among age group of 15-29 only about 2% have received formal vocational training, indicating that very few young persons actually enter the world of work with any kind of formal vocational training. Our Vocational Education and Training system needs to cover more trades. However it is suffering from disabilities such as poor infrastructure, ill-equipped classrooms/laboratories/workshops, below par faculty, absence of measurement of performance and outcomes etc.
In addition to the existing basic problems with the skill development system in the country , the urgency is felt with the demographic changes taking place.
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