Does inclusive growth has been happened to our country?

Looking at the rates of poverty, unemployment and malnutrition in India, I would say no.
Probably growth is important, but only reaches a selected few. Probably classism exists here too. Probably growth helps only a few classes and enables them to live a better life. Probably it is not just growth that leads to a better life but other elements and factors that are often missed out in growth. Probably there is a need to redefine growth.

Probably all this is true and if the probability of what I am saying is high, who will make a change?
India’s economy is currently in its boom phase with the growth rate of about 7%.  Where on one side India s economy is booming at a rate of 7%, the growth in employment remains stagnant at 2%. Thus accompanying this rosy picture of development is also a grim side of growth. What good is growth in an economy if it has been unable to resolve the basic problems of poverty and unemployment in an economy?

The biggest problem in India has been that growth has not been inclusive. While growth has benefited a few, many have been left out from its reach and benefits of economic growth have not been equitably shared. The neo-liberal policies guarantee growth, however, is it just about the rate of growth or also about its nature, composition and implications on various socio-economic classes?

In an economy, it is usually believed that when growth takes place, trickledown effect also accompanies it and eventually the benefits of growth reach everyone. According to trickledown effect, growth initially benefits the high income groups and the benefits eventually trickle down to the lower income groups. However, while this concept looks feasible in theory, in reality, it does not exist. If it did, we wouldn’t be experiencing the massive inequality gap that we are experiencing in India.

Thus, there is a need to redefine growth. Growth needs to be made inclusive. It must tackle inequalities in incomes, health, education and well-being. For this to be achieved, barriers to inclusive growth must be broken down and changes must be brought about in policy making and its implementation.

Everyone should be able to realize their potential and to share the benefits of growth and increased prosperity regardless of their economic class, gender, sex, disability and religion. Inclusive growth refers to both the pace and the pattern of the economic growth and implies a direct link between the macroeconomic and micro economic determinants of the economy and economic growth.

The inclusive growth approach takes a longer term perspective as the focus is on productive employment rather than on direct income redistribution, as a means of increasing incomes for excluded groups. Thus distinct from income distribution schemes which can in the short run reduce the disparities, between the rich and the poor, inclusive growth implies sustainable growth. While income distribution schemes can allow people to benefit from economic growth in the short run, inclusive growth allows people to contribute to and benefit from economic growth in the long run. Inclusive growth may also make the poverty reduction efforts more effective by creating economic opportunities for the poor and vulnerable sections of the society.

Sustainable economic growth requires inclusive growth. However, achieving inclusive growth is sometimes difficult because economic growth may give rise to negative externalities including a rise in corruption, which is evidently felt and seen in every sphere of our Indian economy.

However, an emphasis on inclusiveness still remains very important as it guarantees equality of opportunity in different terms including access to markets, resources, and an unbiased regulatory environment. It is an essential ingredient of successful growth. The inclusive growth approach takes a longer-term perspective, as the focus is on productive employment as a means of increasing the incomes of poor and excluded groups and raising their standards of living which may look like a difficult task to achieve at first, and doesn’t suit the interests of many but eventually ensures benefits for all. Hence, we must think about the betterment of each and every section of our society and lay pro-people comprehensive policies that redefine growth to be inclusive.

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Most of us, including myself, believe that it is the environment that comes before everything else, however there are also many who believe that there are other things including economic progress which comes before the environment and today I intend to explore that other side.

According to a recent finding, government efforts to regulate environmental quality and achieve “sustainable development”, can have a negative impact on economic growth. There are many examples around the world where the country’s economic growth has been affected by environmental laws. It was found that American regulations on air and water had a total cost of about $320 billion and decreased its GDP by 5.8%.

Proponents of the view that economy comes before the environment suggest that rapid industrialization does not have to put pressure on the environment. Advances in science and technology have made industries much less polluting for example, efficient new steelworks use much raw materials, power and less water while producing lesser pollution than traditional factories. Nuclear generating plants can provide greater energy than coal while their contribution to global warming is far lesser. Alternative renewable types of energy such as solar, wind and hydro-power are also being explored with economic development.

Hence, with a strong economy supporting a country, it can take initiatives regarding the environment while it not the other way around. A good economy leads to a great financial growth of the nation, while a bad economy leads to a nation that is incapable and leads to the collapse of the nation. There are a few Mediterranean countries which have an excellent environment, but people there are having a difficult time finding jobs and the countries are in debt. If the world’s economy is not developed first, then the world may not have enough money to help the as economic growth enables people to reduce pollution and improve the environment, without trashing the standard of living. Hence they advocate that environmental protection is important but not more than economic growth.

The proponents of this view might be wrong or they might be correct but I still maintain my stand that both economic growth and environment protection are equally important and are two simultaneous processes and not sequential.

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The dry bulk industry is an important part of the international shipping market however, it is a fragmented industry beset by overcapacity and rock-bottom freight rates. Iron ore and coal form two-thirds of the dry bulk shipping industry and China is the biggest consumer of these commodities and a major driver on the demand side. The supply side of dry bulk shipping got a major boost by China’s increasing demand for iron ore and coal almost eight years ago and thus resulting in a growing order book. This is driving the current oversupply in the market.

Earlier this year the Baltic Dry Index hit a thirty year low and to stay afloat amidst the crises, many shippers resolved to the formation of dry bulk shipping pools and Joint Ventures. Since the beginning of the year two shipping ventures in the dry bulk segment have been launched- ‘ The Capesize Chartering joint venture’- launched by Bocimar International, C Transport Maritime, Golden Union Shipping Co, and Star Bulk Carrier Corp and ‘The Sapphire Pool’- consisting of Supramax vessels, was set up by ship-owner Clipper.

Dry bulk joint ventures benefit shipping pools as well as individual ship-owners as they enable them to take up Contracts of Affreightment (CoA) which they would not have been able to take up otherwise due to capacity constraints or due to the high risk factor involved, enjoy economies of scope- size and flexibility of scheduling, economies of scale to a certain extent as it brings the venture in a strong negotiation position and allows them to bargain for cheaper factors including bunkers, attract charterers by its size and standards and help in diversification and risk-spreading. They also help with triangulation strategies such as higher load factors, reduction of ballast bonuses and demurrage payable by charterers/cargo owners and idle time since always the best positioned vessel can be offered for a fixture of a cargo. Given the number of benefits these alliances offer the shipowners, these can certainly be very useful during the difficult times in the business cycle.

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Kashmir has been the root of boundary dispute between India and Pakistan since independence of both the countries in 1947.

The independent states were given the option whether to join India, Pakistan or remain independent. Maharaja Hari Singh, the ruler of the princely state of Jammu and Kashmir then opted to join India and thereby signed the “instrument of accession” on 25 th October 1947 subsequently accepted by the Government of India on 27^th October 1947. Pakistan expected Kashmir to join it since it had majority of Muslims and Pakistan had the vision of an independent Muslim state outside India. Whereas India, on the other hand, had the goal of retaining Kashmir in order to portray India as a secular state. Thus, began the First Kashmir War in 1947 when Pakistani Pathans started invading Kashmir from its northwest region. The Second Kashmir War took place between April-September 1965. This again began with Pakistan invading India following their Operation Hibraltor . This five-month war ended with 11 UN resolutions and the Tashkent Declaration of 1966.The Third Kashmir War (Kargil War) began in May 1999 again when Pakistani soldiers infiltrated Jammu & Kashmir and reached NH1 (National Highway 1). Bill Clinton then called Kashmir “the most dangerous place in the world.” At that point of time, India had a more stable economy than Pakistan. India’s GDP was more than six times Pakistan’s GDP. Thus, the war ended with India regaining control of the occupied territory, and thus forcing the Pakistani military to retreat.

However, today the tables have turned for the good where both countries have expressed their willingness to begin a new era of bilateral relations. War, even though highly debatable and seemingly only solution has curbed both the country’s economic development. The neighborhood rivalry has cost both the sides. Hence, there’s a need for a clear solution, which invites more economic prosperity to both, decreases terrorism and makes the state of Kashmir a heaven indeed.

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While books are the set of written and printed ideas and experiences of some different person or people, traveling is a self-experience. In other words through books one can see the world through someone else’s eyes and get an insight about their perspectives while through travelling one can experience that world through one’s own eyes.

We have always heard that a book is a man’s best friend. A friend who is always there for you no matter what your mood or condition is. Travelling on the other hand gives you the opportunity to make many real friends from different corners of the world, with different cultures, Backgrounds, appearances. It gives you a chances with people with different moods, thought processes, ideas expressions and emotions. Friends whom you can love and who can love you back. Books are based on the ideas, thoughts, incidents and experience of a particular person. Other than imparting knowledge, books help in motivating ourselves but it is just like being motivated by something that is virtual. You can be motivated up to a certain extent, but when you actually experience it all in real, it is only then that you realize the importance of different things .Reading about poverty is a different thing than actually travelling to the poor countries and seeing it for yourself. Studying about global warming is different than actually going to Antarctica and experiencing it. Travelling inspires and makes us more cautious and sensitive to what is actually going around the world. You cannot read about entrepreneurship and become successful unless you have actually travelled and seen how these big players function around the world .

Books are made to share the story of an incidence through which you can learn about the experiences of a person. But it will not help gain the ‘Real Experience’.

Another interesting thing about travelling is that it can be enjoyed by everyone and not just literate and book lovers.What a book can’t do, travelling cannot.  You can read about the speed and length about the fastest roller coaster in the world but you can never truly experience that unless you actually go to Dubai and sit on it.  During traveling you don’t get knowledge of a particular thing but also get the real experience.

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Recently, there is a rapidly developing notion that private schools are superior to government schools. . But, is this perception true? Is complete privatization of the education sector the only solution to schooling in India?

The mismanagement and lethargy of most public schools, which account for 80 percent of the India’s education system today, calls for privatization of schools. In an overpopulated country like India, the government cannot provide enough number of schools and hence allowing the private sector to step in is an inevitable step. In public schools, teachers are less liable to impart quality education due to the job security provided by the government. However, a strict code is followed by the school administration and management in private schools thereby, effectively controlling the teaching staff. In recent times, it has been seen that the standard of education that students get from private schools is invariably much higher than in comparison to governmental schools, barring a few exceptions. Most private schools have better infrastructural and technological facilities.  Apart from providing conventional education, private institutions also focus on developing a child’s vocational skills providing them with a plethora of extra-curricular and sports opportunities.

While on one side we see why privatization of schools is essential for our country, it is also important to see the other side and understand why it is not.The annual fee charged by private schools is so high that even middle class families find it very difficult to afford it let alone the poor families. Hence affordable education at government schools gives some of the economically weaker sections of the society a chance to gain education and do well in life. There is no reason for these private schools to quote such an exorbitant price for education because most government schools have equally good standards.Though they do not have any extravagant facilities like AC’s and stylish canteens, it is not a negative point but a boon for them as students are not exposed to such luxuries at any early age. Government schools have the best faculty as most teachers prefer to join a government institution because of the excellent pay, job security and pension. This is the reason why government schools students do so well in competitive examinations like IIT-JEE.

Thus while privatization has benefited the quality of schools, public schools have their own important role to play and steps must be taken to improve the quality of the existing government schools.

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How important are the oil resources in India and how important is oil trade?  The answer could be understood by looking at some of the facts. India is world’s fourth largest crude oil consumer. However, India’s oil reserves meet only 25% of the country’s domestic oil demand and hence it imports almost 70% of its total consumption.The maximum quantities of imports in India are that of oil and other petroleum products . Crude oil plays a vital role in the country’s economic growth as empirical studies show that the oil sector can cause other non-oil sectors to grow.

Saudi Arabia, Iran, Nigeria, Iraq, Kuwait, UAE, Malaysia and Yemen are amongst the few countries India imports its oil from. Iran used to be India’s second-largest crude oil supplier however the US and European sanctions have reduced the crude oil imports from Iran. India’s oil imports from Iran have decreased by considerably and it is now the fifth-largest crude oil supplier to India.

Sanctions on Iran came into force in 2002 after Iran’s nuclear program became public and it was expected that these would severely affect oil prices in India. Now is this really so?

To answer this we must first understand the Iran sanctions.

As the International Atomic Energy Agency (IAEA) had been unable to confirm Tehran’s assertions that its nuclear activities are exclusively for peaceful purposes and that it has not sought to develop nuclear weapons the United Nations Security Council had adopted six resolutions since 2006 requiring Iran to stop enriching uranium – which can be used for civilian purposes, but also to build nuclear bombs and co-operate with the IAEA. However recently under the agreement reached in Geneva, Iran has committed to halt enrichment above five per cent, halt progress on its enrichment capacity and to halt progress on its plutonium track after which some of the sanctions were lifted. Does this mean good news for India? No it doesn’t as deal this did not bring any respite for India as it has to continue reducing its oil imports from Iran.

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Can money buy happiness? Is every rich person happy and every poor person unhappy? If we assume this assertion to be true then the possible reason behind it could be that due to poverty, people cannot afford the basic necessities of life like good food, shelter and healthcare facilities which reduces their life expectancy and increase their chances of acquiring diseases. With no proper sex education they have large families and supporting them is a huge task for the poor, which could also be one of the reasons for their unhappiness. On the contrary, if it is true the other way round and we assume that the poor people are happier than the richer ones then the possible explanation for that could be that the poor lead a much calmer and peaceful life as they don’t face the stress of a job or the tension of getting good marks in school.

The Easterlin Paradox is a key concept in happiness economics. It is named for the economist and USC professor Richard Easterlin. According to the Easterlin within a society, rich people tend to be much happier than poor people but, rich societies tend not to be happier than poor societies and as countries get richer they do not get happier. This could possibly be because life satisfaction does rise with average incomes but only up to a point. Beyond that the marginal gain in happiness declines.

However In “The New Stylized Facts about Income and Subjective Well-Being” Daniel W. Sacks, Betsey Stevenson, and Justin Wolfers offer a compact and readable summary of the evidence that income is not just relative–and so more income does increase happiness

There is a continuous debate about whether income is an accurate and effective measure of our well-being. However it cannot be ruled out that income is indeed a very important factor amongst the many other factors that influence how satisfied we are with our lives.

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India exports a variety of commodities to other countries. Some of the exported good include mineral fuels, mineral oils and products of their distillation including products like coal and oil natural , cultured pearls, precious or semiprecious stones, vehicles, electrical machinery and their equipment and parts including products like televisions and sound recorders, iron and steel, fertilizers and cotton.

UAE is one of the biggest importers of Indian commodities and is closely followed by the USA. While India exports coal to Hong Kong, it exports tea and apparels to UK. To Canada it exports ready made garments, textiles and cotton yarn while to Australia it exports gems, pearls, and jewelry, chemicals and agricultural products. Other important importers from India include Singapore, China, Saudi Arabia, Netherlands, Germany and Brazil.

Growth of an economy is directly related to exports and according to ‘Daily OJO’ export growth is important because of its effect on internal trade and economic stability. Even more, the rate of economic growth and the distribution of income and wealth in a country are closely related to export growth.  Exports as a whole affect the industrial environment. India’s GDP growth rate in exports is an important factor contributing to it.The government had earlier this year also announced several export boosting measures like extension of its interest subvention scheme to boost textile and engineering exports.

Hence it is very important for India to expand its exports and one of the steps to achieve this is to start exporting to new countries. There are 196 countries in the world. International expansion to new countries is a very important step boost exports. According to an article by Sparta Strategies the top five emerging markets for Indian exporters could be South Korea, Philippines, Indonesia, Mexico and Thailand due to the high growth rate which can be seen in these countries. India should also start exporting new goods and promote the production of indigenous goods such as exotic Indian textiles like saris and suits, organic and traditional foods, ayurvedic and homemade cosmetics and medicines should be promoted.

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In political economics, entrepreneurship is a process of identifying and starting a business venture, sourcing and organizing the required resources and taking both the risks and rewards associated with the venture. Entrepreneurship is one of the most important inputs in the economic development of India as an entrepreneur is responsible for fostering economic growth and economic development. Other important economic developments an entrepreneur leads to include increasing country’s export trade and balancing trade deficit, increasing gross national product and per capita income by wealth creation and distribution and finally creating employment opportunities.

If entrepreneurship is so important than why is it that such a large country like India has a contribution of only 3% to the total number of entrepreneurs in the world while a small country like Thailand has had a contribution of 20% of the total number of entrepreneurs in the world?

It indeed is a mind boggling question with no proper answer.  Let us try exploring some of the possible solutions to this problem. One possible reason for the lack of entrepreneurs in India could be that people in India do not have the capability to dream big. Now there is certainly something wrong with this answer as we Indians are amongst the most erudite people in this world. We cannot forget the fact that we were the ones who invented the number zero and so have intelligence running in our veins. Thus ruling this one out another possible solution could be that Indians have ideas but do not know how and where to apply them and lack the knowledge about starting their own venture. Another reason could be it that we Indians are very satisfied with the jobs we are in currently doing and hence would not like to step out of this security and take risks. Finally, whichever might be the answer to this Russell’s paradox, what is important to understand is the importance of entrepreneurship and why more Indians should become entrepreneurs.

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