Economic policies focused only on quantitative aspect of growth have not shown trickle-down effect. Inclusive growth only can ensure equitable distribution of fruits of progress. Elaborate.
Earlier economic policies were focused on growth, a quantitative approach. It was believed that ultimately prosperity would ‘trickle-down’ to the masses. However, rising inequality, hunger, disease, low-wages, poor education & healthcare are causing societies to talk about development & inclusive growth.
Inclusive Growth:
- As per OECD, inclusive growth is that which is distributed fairly across society and creates opportunities for all.
- It means equality of employment opportunities, access to essential services like health, education, etc by all.
- Empowerment of vulnerable sections of society via education & skill development.
- An environment friendly sustainable growth process.
Elements of Inclusive growth:
- Skill Development – to ensure the employability of the working age population. Education, vocational training is important for it.
- Financial Inclusion – to ensure access of vulnerable sections of society to financial services at affordable costs.
- Technological Advancement – Technology can both, decrease or increase the inequality depending on the way it is used. It can transform agriculture, education, and health sector.
- Economic Growth – focused on reducing inequalities.
- Social Development – empowerment of vulnerable sections of the society.
Conclusion:
India ranks 130 in Human Development Index and 115 in Global Hunger Index. Hence, “Sabka Sath, Sabka Vikas” approach is needed to achieve SDGs by 2030.
Topics: GS-III: Inclusive Growth and Issues Arising From It