PRODUCTIVITY FOR INCLUSIVE GROWTH

The Indian economy, which has over the last six decades passed
through various phases of growth, is now all set to enter an altogether
different orbit marked by a high rate of expansion, combined with
‘inclusive growth.’ The term, inclusive growth, is finding its way
increasingly in the lexicon of government leaders, economists,
planners, academicians and businessmen, not just in India but even
internationally.

Although Indian economy has borne adverse effects of global

economic slowdown and figures GDP growth rate highs of 6.5
percent in 2009. Yet major portion of our population i.e. about 800-
1000 millions are still to participate in the country’s growth and benefit
from it directly and therefore we still need solutions to mainstream
social change, to enhance people’s productivity and their wealth
creating capabilities and these solutions need to be designed for
scale, executed at scale and sustained at scale to achieve inclusive
growth for India.

It is indeed a matter of concern that high national income growth

alone does not address the challenge of employment promotion,
poverty reduction and balanced regional development. Nor does
growth in itself improve human development. Consequently, all the
major initiatives of government of India at present – in agricultural and
rural development, in industry and urban development, in

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infrastructure and services, in education and health care etc– sought
to promote ‘Productivity for inclusive growth’.

Government’s massive efforts since independence and creation of

public sector having a focused mandate for balanced regional
development did have an impact on inclusive growth to some extent.
However, due to a variety of reasons inefficient service delivery
mechanisms hampered the best intentions of planners and policy
makers.

There is a great scope for enhancing the efficiency as well as

effectiveness of host of meaningful schemes of the government
leading to higher convergence and effectiveness. The government is
concerned with evolving a variety of innovative strategies to make its
dominant imperative of Inclusive Growth a success. One such
innovation is the public-private partnership through the involvement of
organized industry/service sector.

The pace of government reforms and work done by NGOs is still very
slow and when one talks about public access to healthcare,
education, food and water, power, energy and even infrastructure,
what we have missed out on is in getting people involved and
bringing the power of markets to the grassroots. The solution lies in
getting the private sector involved, and ensuring that its participation
goes much beyond that of the traditional ambit of Corporate Social
Responsibility.

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The recent focus on Corporate Governance as well as ethical aspects
of running business – in particular the product safety and life-cycle –
impact of the industry/product on the society are some of those
initiatives forcing the industry to look at certain facets having bearing
on Inclusive Growth. As a matter of fact, the increasingly popular
concept of triple bottom-line does focus on the need to have a relook
and introspect on the social and environmental productivity and
sustainability of the business as well.

Further, the period of Liberalization, Privatization and Globalization

has brought in intense competition and consequently enhanced focus
on commercial focus of business more than ever and could be the
reason for increasing gap between “Haves” and “Have Nots” i.e.
industrial employees and related population on one-side and rural
and urban poor & informal and unorganized sector employees on the
other.

Productivity for Inclusive growth in its simplest form means growth

that is reasonably, indeed fairly shared, and that corresponds to both
equality and equity. It includes measurable criteria and more
intangible elements. The former (the measurable) comprises of
measuring income distribution, the literacy rate, the general provision
and distribution of public goods, including education, health,
electricity, water, transport infrastructure, personal security, etc.

To successfully address the challenge of Productivity for inclusive

growth will require a mobilization of all possible stakeholders. The

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players to be included in this enormous task – and who need to be
included in all major national programs – are national governments,
local governments, international organizations, domestic corporate,
multinational corporate, entrepreneurs, NGOs, academe and the
media.

Reforms in the last two decades reveal that while there have been
achievements on the economic growth front, inequalities have
increased and exclusion continues. It is here that the enhanced and
complementary role of productivity comes at the center stage to
catalyze the efforts of the government and every stakeholder in
making it more effective in tackling the issues of Inclusive Growth for
economic reforms with equitable development. Therefore,
“Productivity for Inclusive Growth” has been chosen as the theme for
the ‘Productivity Week-2010’ (12th – 18th February 2010).