INCLUSIVE GROWTH AND CHALLENGES

(Sociology paper 2)

Practice Question : Despite government measures, inclusive growth is elusive. Comment.
Approaching the Question: Introduction; Challenges in achieving inclusive growth, briefly mention government measures; Conclusion.

INCLUSIVE GROWTH : DEFINITION

Inclusive growth is a concept that advances equitable opportunities for economic participants during economic growth with benefits incurred by every section of society. The definition of inclusive growth implies direct links between the macroeconomic and microeconomic determinants of the economy and economic growth. 

ELEMENTS AND FEATURES OF INCLUSIVE GROWTH

1. Reduction in poverty.
2. Equal opportunities.
3. Education and skill development.
4. Environment friendly growth.
5. Good Governance.
6. Gender-sensitive society.
7. Financial Inclusion.
8. Technological advancement to leverage growth.
9. Social development.


CHALLENGES IN ACHIEVING INCLUSIVE GROWTH

1. 19.3% of population are vulnerable to multi-dimensional poverty
2. As per the Periodic Labour Force Survey of NSSO, total unemployment rate is at 6.1%.
3. 80% of people work in the formal sector without any social security.
4. Agricultural backwardness – Around 44% of people is in agriculture- related employment but its contribution to GDP is 16.5% only; low productivity ; disguised and seasonal unemployment.
5. Regional disparities and unbalanced growth.
6. Issues with social development- gender inequality, poor performance in social indicators liker health and education, etc.
7. Useless and careless labour- underemployment; lack of high productivity and high wage jobs ; unskilled labour; casualisation of workforce.


GOVERNMENT MEASURES TO ACHIEVE INCLUSIVE GROWTH

1. MGNREGA, Mudra Bank Scheme, DAY-NULM, NRHM, Mission Ayushman, PMJDY, Sarva Shiksha Abhiyan (SSA), etc.
2. NITI Aayog’s strategy for New India@ 75 – “To have a rapid growth, which reaches 9-10% by 2022 -23 which is inclusive, clean , sustained and formalized.”


REMEDIAL MEASURES / WAY FORWARD

WorId Economic Forum suggested 3 practical ways:
1. Countries should increase public and private investment in their citizen’s capabilities.
2. Governments should upgrade national rules and institutions relating to work.
3. Government should increase public and private investment in labour sensitive
sectors.

Leave a Comment

Your email address will not be published. Required fields are marked *

Contact Us
close slider