NEXT IAS GS PRE CUM MAIN FOUNDATION COURSE for CSE - 2022 MODULE-2: Inclusive Growth by Vibhas Jha SirInclusive Growth (Notes) GS Pre cum Main Foundation Course for CSE 2022 | Vibhas Jha Sir Growth and Development Growth is a quantitative idea based on higher income, larger industrialisation, greater commercialisation and larger investment. It assumes that a larger stock of capital goods will result in larger output, higher growth and higher standard of living. Therefore, the stress was on increasing the flow of saving and investment to increase flow of GDP by adding to stock of capital and wealth. Note: Difference between a stock variable and a flow variable Stock variables are measurable at a point of time. Example; capital stock, population, wealth. Flow variables are measurable over a period of time. Example; GDP growth, wages, savings and investment. Every flow variable will add to the stock variable. Development is a qualitative concept. It is more wholesome than growth. The traditional approach of development defined it as sustained increase in GDP at 5-7% per annum along with changes in structure of production and employment, that is, decrease in share of agriculture and increase in manufacturing and services. It believed that higher economic activities will result in increasing the productivity of workers and make everybody better off over a period of time. This is called the trickle- down approach. Development changed its view in the 1960s when it was realised that 40% of the world population gained nothing from growth in spite of higher GDP growth. The modern definition of development is capability enhancement by removing poverty, inequality and lack of opportunities with sustainable development and equitable distribution of resources for all. Inclusive growth implies the growth process which must include all sectors of society, therefore, the growth strategy should be designed such that it reduces burden on the poor through progressive distribution. 2|PageInclusive Growth (Notes) GS Pre cum Main Foundation Course for CSE 2022 | Vibhas Jha Sir The focus should be on equity and not equality. The key features of Inclusive growth are as follows: - Economic growth is a precondition for inclusive growth, though the nature and composition of growth has to be conducive to inclusion. - _ Inclusive growth is to include the poor and lagging socio-economic groups such as ethnic / tribal groups, weaker sections as well as lagging regions as partners and beneficiaries of economic growth. - The Inclusive growth addresses the constraints of the excluded and the marginalised. It has to open up opportunities for them to be partners in growth. - Inclusive growth should be non-discriminatory and favourable for the excluded. This implies that inclusive growth has to be broad- based in terms of coverage of regions, and labour-intensive in terms of creating large-scale productive employment opportunities in the economy. - Inclusive growth is expected to reduce poverty faster in the sense that it has to have a higher elasticity of poverty reduction. - Inclusive growth has to ensure access of people to basic infrastructure and basic services/capabilities such as basic health and education. This access should include not only the quantity, but also quality of these basic services. - Inclusive growth should reduce vertical as well as horizontal inequalities in incomes and assets targeting all vulnerable groups. Inclusive growth can be attained through two major processes: a. Physical development b, Human development Physical development implies equitable quantitative growth which can be achieved by improving standard of living through concentration on employment opportunities for the poor. The general tools with which it can be achieved are: a. _ Better physical infrastructure growth. b. _ Removing poverty by increasing, capabilities among people. 3/PageInclusive Growth (Notes) GS Pre cum Main Foundation Course for CSE 2022 | Vibhas Jha Sir c. Providing better regional balance to the growth process by targeting comparative advantage of individual areas. Example; developing the food bowl industry in areas like West Bengal, UP and Bihar. PM Gram Sadak Yojana Rural Road Connectivity is not only a key component of Rural Development by promoting access to economic and social services and thereby generating increased agricultural incomes and productive employment opportunities in India, it is also as a result, a key ingredient in ensuring sustainable poverty reduction. Hence, Government launched the Pradhan Mantri Gram Sadak Yojana on 25th December, 2000 to provide all-weather access to unconnected habitations. The Ministry of Rural Development along with state governments is responsible for the implementation of PMGSY. PMGSY - Phase I PMGSY - Phase I was launched in December, 2000 as a 100 % centrally sponsored scheme with an objective to provide single all-weather road connectivity to eligible unconnected habitation of designated population size (500+ in plain areas and 250+ in North-East, hill, tribal and desert areas, 00 - 249 population in LWE districts as per Census, 2001) for overall socio-economic development of the areas. Also, upgradation (to prescribed standards) of the existing roads in those Districts where all the cligible Habitations of the designated population size have been provided all-weather road connectivity was to be taken up. However, Upgradation is not central to the Programme. In Upgradation works, priority was to be given to Through Routes of the Rural Core Network, which carry more traffic. Under the scheme, 1,35 436 habitations were targeted for providing road connectivity and 3.68 lakh km. for upgradation of existing rural roads (including 40 % renewal of rural roads to be funded by the States) in order to ensure full farm to market connectivity. PMGSY - Phase II The Phase II of PMGSY was approved during May, 2013. While the ongoing PMGSY - I continued, under PMGSY phase II, the roads already built for village connectivity was to be upgraded to enhance rural 4|PageInclusive Growth (Notes) GS Pre cum Main Foundation Course for CSE 2022 | Vibhas Jha Sir infrastructure. For the 12th Five Year Plan period a target of 50,000 Km length under PMGSY-II. 75 percent of the cost of the upgradation was by the Centre and 25 per cent by the state. For hill states, desert areas, Schedule V areas and Naxal-affected districts, 90 percent of cost was borne by the Centre. PMGSY - Phase III Phase II was approved by the Cabinet during July 2019. It involves consolidation of Through Routes and Major Rural Links connecting habitations to Gramin Agricultural Markets (GrAMs), Higher Secondary Schools and Hospitals. Under the PMGSY-III Scheme, it is proposed to consolidate 1,25,000 Km road length in the States. The duration of the scheme is 2019-20 to 2024-25. The funds would be shared in the ratio of 60:40 between the Centre and State for all States except for 8 North Eastern and 3 Himalayan States (Gammu & Kashmir, Himachal Pradesh & Uttarakhand) for which it is 90:10. (Relevant scheme for Physical development would be discussed along with discussion on Infrastructure) Human Development Basic tools to provide human development are better education and healthcare. Education Literacy rate was16% (7% female) by census (1950-51). Proper education at basic level is one of the primary requirements for inclusive growth. The literacy rate in 2011 was 73% with male literacy at 80.9% and female literacy at 64.6%. But the decade of 2001-2011 had certain achievements in the field of literacy improvement. They were: a. The improvement in literacy rate of females was higher (10.9% increase) as compared to that of males (5.6% increase). b. Right to education Act was passed in 2009 to be implemented under Sarva Shiksha Abhiyan (SSA). 5|PageInclusive Growth (Notes) GS Pre cum Main Foundation Course for CSE 2022 | Vibhas Jha Sir c. The total enrollment in primary school increased continuously and by 2013-14 it had reached almost 100%. Enrollment in secondary school also increased, which is a healthy trend showing lesser dropouts. d. Better provision of civic amenities like mid-day meal, drinking water facility and sanitation also resulted in improving enrollment and attendance in schools. In the last few years, the government has initiated several schemes under the Ministry of Skill Development to improve educational level. They are: 1. Rashtriya Madhyamik Shiksha Abhiyan (RMSA); to improve the quality of middle school education. It has been followed by Rashtriya Uchhatar Shiksha Abhiyan (RUSA) to improve high school education. Both these schemes along with model school schemes have been combined and brought under Saakshar Bharat Scheme from 2015-16. 2. To improve the quality of technical education, the government has set up Technical Education Quality Improvement Programme and National Skill Qualification Framework (NSQF). Both these programmes have been brought under All India Council for Technical Education (AICTE). 3. The government has created a dedicated Department of Skill Development and Entrepreneurship in the Ministry of Skill Development which has initiated several schemes like Deendayal Upadhyay Grameen Kaushal Yojana (DDU-GKY) for the skill development of rural youth with placement opportunities. 4. Upgrading Skills and Training in traditional Art and Craft Development (USTAAD). 5. “Nai Manzil” and “Nai Roshni” are programmes initiated to educate the dropouts and women; respectively. From 2015-16 budget, the government introduced “Padhe Bharat Badhe Bharat” as a flagship scheme to promote basic skills at lower level of the population pyramid. Criticism. 1, Annual Status of Education Report (ASER), done by an NGO called “Pratham” annually, has reported that learning levels have notInclusive Growth (Notes) GS Pre cum Main Foundation Course for CSE 2022 | Vibhas Jha Sir improved in the last 10 years and students at upper primary level could not solve problems of lower primary level. 2. Programme of International Student Assessment (PISA) conducted evaluation tests in which only two Indian states (Tamil Nadu, Himachal Pradesh) participated and their rank was 72 and 73 among 74 nations (2009). 3. Lack of teacher attendance and basic infrastructure especially in rural areas. 4, Lack of proper coordination between formal education networks and industries related to the field which results in inadequate skill training and absence of industry required skills. Health Total Fertility Rate (TFR), (the number of children that a woman is expected to have in a country), is 2.3 in India. Lowest TFR is reported in Kerala at 1.7 and highest in UP at 4.1. Maternal Mortality Rate (MMR), that is, the number of women who die during delivery of a child, was 141 in 2015 compared to 6-7 in developed countries. Child (under 5) Mortality Rate, that is, the number of children who die per 1000 children before reaching the age of 5 years. In India, it was 42/1000 in 2015-16. In MMR and CMR, India has achieved the Millenium Development Goals. Health improvement is dependent on provision of clean water, sanitation, proper nutrition and better health infrastructure like the presence of hospitals, Primary Healthcare Centres (PHCs) and their accessibility for the poors. The government has taken several steps for provision of better healthcare. They are: 1. Appointing Accredited Social Health Activists (ASHA workers) under Anganwadi Programme to help women during pregnancy and post pregnancy for nutritional requirements.Inclusive Growth (Notes) GS Pre cum Main Foundation Course for CSE 2022 | Vibhas Jha Sir 2. Initiating National Rural Drinking Water Programme to supply purified water to rural areas using solar power. 3. Initiating Swachh Bharat Programme (2nd october, 2015) to remove open defecation completely by 2019. 4. Maylynnong in Meghalaya was declared Asia's cleanest village by the East Asian Community of Social Welfare. 5. The government has set up a separate department under the Ministry of Health for Alternative Medication, called AYUSH. 6. The government has combined National Urban Health Mission (NUHM) and National Rural Health Mission (NRHM) into a single category of National Health Mission (NHM). 7. The government has initiated health insurance facilities and health protection facilities under Rashtriya Swasthya Bima Yojana, Pradhan Mantri Swasthya Suraksha Yojana (PMSSY) and Ayushmaan Bharat Programme. 8. The efforts of the government over the period have been mainly concentrated on preventing disease through medical provisioning but the larger requirement is to take precautions to restrict the spread of disease. (Discussion on financial inclusion, healthcare initiatives and educational initiatives will be further done in the class.) Other Relevant Schemes for Inclusive Growth PM Garib Kalyan Yojana Pradhan Mantri Garib Kalyan Yojana (PMGKY) was launched by the Government of India and came into effect in 2016. It allows individuals to deposit money that has not been taxed. Financing of the scheme initially is through 50% of the untaxed amount that must be paid. The scheme was initially valid from December 2016 to March 2017. However, it was later extended till the month of June 2020 Union Finance Minister Nirmala Sitharaman announced a package of Rs.1.70 lakh crore under the scheme shortly after the announcement of national lockdown. As part of the package, the government announced medical insurance coverage of Rs.50 lakh per person to around 20 lakh COVID-19 warriors. Bl PageInclusive Growth (Notes) GS Pre cum Main Foundation Course for CSE 2022 | Vibhas Jha Sir ‘The benefits of the package were divided into two parts, They are: 1. Food security 2. Direct Benefit Transfer (DBT) Food security As part of food related relief measures, the government announced that around 80 crore people will be receiving, 5 kg of rice or wheat along with one kg of preferred pulse every month till the end of November. This benefit will be provided in addition to the 5 kg of rice or wheat already provided every month. Direct Benefit Transfer (DBT) While under DBT (Direct Benefit Transfer), specific announcements were made by the Finance Minister. 1. Benefit to farmers: Farmers will be provided an additional amount of Rs.2,000 by the government as front-load under the Kisan Samman Nidhi program. 2. Increase in daily wage: The daily wage of workers under MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act) has been increased to Rs.202 for the next 100 days. It is expected to benefit 5 crore families. 3. Exegratia of Rs.1,000: The government will be providing 3 crore poor senior citizens, disabled persons and widows ex-gratia of Rs.1,000 over three months. 4, Free LPG cylinders: Free LPG cylinders will be provided for the next three months to 8.3 crore BPL families that hold LPG connections under the Ujjwala scheme. Ex-gratia for women account holders: 20 crore women account holders under the Jan Dhan Yojana Scheme will be receiving ex- gratia amount of Rs 500 for the next three months. 6. Avail collateral-free loans: Under National Rural Livelihood Mission (NRLM), 63 lakh women Self-Help Groups (SHGs) will be able to avail collateral-free loans up to Rs.20 lakh. 7. _EPF benefit for workers from organized sector: For the next three months, the Government will pay the EPF contribution for both 9|PageInclusive Growth (Notes) GS Pre cum Main Foundation Course for CSE 2022 | Vibhas Jha Sir employer and employee (12% each). Establishments which have employees up to 100 with 90 percent of them drawing salary below Rs.15,000 per month will be benefited by the move. The government also amended regulations of EPFO to allow employees to avail non- refundable advance of three months’ salary, or 75% of the total fund, whichever is lower. 8. Utilization of welfare and district mineral fund: The government has directed state governments to utilise welfare fund and district mineral fund. While the welfare fund is being asked to protect the construction workers, the district mineral fund is to be used for screening, testing, and other requirements in order to combat COVID-19. PM Jan Dhan Yojana Pradhan Mantri Jan-Dhan Yojana (PMJDY) is National Mission for Financial Inclusion to ensure access to financial services, namely, basic savings & deposit accounts, remittance, credit, insurance, pension in an affordable manner. Under the scheme, a basic savings bank deposit (BSBD) account can be opened in any bank branch or Business Correspondent (Bank Mitra) outlet, by persons not having any other account. Benefits under PMJDY 1. One basic savings bank account is opened for unbanked people. 2. There is no requirement to maintain any minimum balance in PMJDY accounts. Interest is earned on the deposit in PMJDY accounts. Rupay Debit card is provided to PMJDY account holders. Accident Insurance Cover of Rs.1 lakh (enhanced to Rs. 2 lakh to new PMJDY accounts opened after 28.8.2018) is available with RuPay card issued to the PMJDY account holders. 6. Life Insurance Cover of Rs. 30,000 to eligible PMJDY account holders who opened their account for the first time between 15.8.2014 to 31.1.2015 is available. - aS 10|PageInclusive Growth (Notes) GS Pre cum Main Foundation Course for CSE 2022 | Vibhas Jha Sir 7. An overdraft (OD) facility up to Rs. 10,000 to eligible account holders is available. 8. PMJDY accounts are eligible for Direct Benefit Transfer (DBT), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY), Atal Pension Yojana (APY), Micro Units Development & Refinance Agency Bank (MUDRA) scheme. Analysis of Jan Dhan Yojana in class Millennium Development Goals and Sustainable Development Goals In September 2000, building upon a decade of major United Nations conferences and summits, world leaders came together at the United Nations Headquarters in New York to adopt the United Nations Millennium Declaration. The Declaration committed nations to a new global partnership to reduce extreme poverty, and set out a series of eight time-bound targets - with a deadline of 2015 - that have become known as the Millennium Development Goals (MDGs). The final MDG Report found that the 15-year effort has produced the most successful anti-poverty movement in history: 1. Since 1990, the number of people living in extreme poverty has declined by more than half. 2. The proportion of undernourished people in the developing regions has fallen by almost half. 3. The primary school enrolment rate in the developing regions has reached 91 percent, and many more girls are now in school compared to 15 years ago. 4. Remarkable gains have also been made in the fight against HIV/AIDS, malaria and tuberculosis. 5. The under-five mortality rate has declined by more than half, and maternal mortality is down 45 percent worldwide. 6. The target of halving the proportion of people who lack access to improved sources of water was also met. 11| PageInclusive Growth (Notes) GS Pre cum Main Foundation Course for CSE 2022 | Vibhas Jha Sir 7. The concerted efforts of national governments, the international community, civil society and the private sector have helped expand hope and opportunity for people around the world. Yet the job is unfinished for millions of people — we need to go the last mile on ending hunger, achieving full gender equality, improving health services and getting every child into school. Now we must shift the world onto a sustainable path. 8 MDGs Eradicate extreme hunger and poverty. Achieve universal primary healthcare. Promote gender equality and empower women. Reduce child mortality. Improve maternal health. Combat HIV/AIDS, malaria and other diseases. Ensure environmental sustainability. ena Pr PPP Develop a global partnership for development. Sustainable Development Goals (SDGs) The Sustainable Development Goals (SDGs), also known as the Global Goals, were adopted by all United Nations Member States in 2015 as a universal call to action to end poverty, protect the planet and ensure that all people enjoy peace and prosperity by 2030. The 17 SDGs are integrated —that is, they recognize that action in one area will affect outcomes in others, and that development must balance social, economic and environmental sustainability. Through the pledge to Leave No One Behind, countries have committed to fast-track progress for those furthest behind first. That is why the SDGs are designed to bring the world to several life-changing ‘zeros’, including zero poverty, hunger, AIDS and discrimination against women and girls. Everyone is needed to reach these ambitious targets. The creativity, knowhow, technology and financial resources from all of society is necessary to achieve the SDGs in every context. 12|PageInclusive Growth (Notes) GS Pre cum Main Foundation Course for CSE 2022 | Vibhas Jha Sir What is UNDP's role? As the lead UN development agency, UNDP is well-placed to help implement the Goals through their work in some 170 countries and territories. It can support countries in achieving the SDGs through integrated solutions. Today’s complex challenges—from stemming the spread of disease to preventing conflict —cannot be tackled neatly in isolation. For UNDP, this means focusing on systems, root causes and connections between challenges—not just thematic sectors—to build solutions that respond to people's daily realities. But UNDP cannot do this alone. Achieving the SDGs requires the partnership of governments, private sector, civil society and citizens alike to make sure we leave a better planet for future generations. @ deerme GOALS ets Intergenerational Equity The term intergenerational equity states that “every generation holds the Earth in common with members of the present generation and with other generations, past and future. The principle articulates a concept of fairness among generations in the use and conservation of the environment and its natural resources”. 13|PageInclusive Growth (Notes) GS Pre cum Main Foundation Course for CSE 2022 | Vibhas Jha Sir Some important acts have been introduced in the Indian Legal system such as: © The National Green Tribunal Act 2010 © The Air (Prevention and Control of Pollution) Act, 1981 © The Water (Prevention and Control of Pollution) Act, 1974 © The Environment Protection Act, 1986 * The Hazardous Waste Management Regulations, etc. However, these laws are facing a severe problem of implementation at the ground level, making many question the effectiveness and seriousness of environmental laws in the country. It was a while before the Constitution added the “right to live in a healthy environment” under Article 21 explicitly. India is one of the few countries with elaborate provisions for the environment in the legal framework. The courts in India largely relied on Article 21 for applying the law to the decision making process on various perspectives and provisional duties related to the environment. Protection of the environment can give rise to many challenges in a developing country. Hence, administrative and legal strategies are extremely important to ensure environmental harmony. Intergenerational Equity Through Public Debt High public debt will result in contributing to high future obligations due to accumulated principal and interest. This obligation can be paid back only if higher taxes are imposed on future generations or development work is compromised which results in compromising intergenerational equity. Major Indices on Measurement of Development Human Development Index The Human Development Index is published by UNDP under the Human Development Report since 1990. HDI is calculated on three parameters: a. Health b. — Education 14| PageInclusive Growth (Notes) GS Pre cum Main Foundation Course for CSE 2022 | Vibhas Jha Sir c. Standard of living Health The progress here is measured in terms of life expectancy at birth as follows: Life expectancy of given country - 20 years LE. of country at highest level - 20 years Education In the case of education, we observe “mean years of schooling” and “expected years of education”. a. Mean years of schooling for adults in given country - 0 years MY. of schooling for adults in highest level country - 0 years b. Expected years of education for a child entering school in a given country - 0 years Expected years of education for a child entering school in highest performing country - 0 years Both (a) and (b) are assigned a weightage of ¥2. Standard of Living Log (GNP/capita) of given country - log(100) Log 75000 dollars - log 100 dollars The final HDI value is calculated as a geometric mean of “health”, “education” and “standard of living”. HDI = (I¢heath) X Teducation) X Htandard ofiving)”* HDI uses a cutoff of 20 years for minimum age because it is considered that any society with life expectancy less than 20 years will become extinct. It is an improvement on the previous method because the rank of a country does not get affected by change in the lowest achieving country’s position. Educational index has been changed to include Gross Enrollment Ratio and Dropout Rate by considering expected years of schooling for a child and qualitative valuation of adult literacy by giving weight to average years of schooling for adults. This dimension also helps in incentivising countries with 100% literacy to strive for better educational achievement. 15|PageInclusive Growth (Notes) GS Pre cum Main Foundation Course for CSE 2022 | Vibhas Jha Sir It also incentivises the government to not only introduce the child to school but also to restrict dropout rates. Standard of living uses 100$ as the lowest margin to assure that it is easier to calculate and aso because the poorest countries over the years have per capita GNP above 100 dollars. 75000 dollar has been taken as the upper limit beyond which income ceases to matter with respect to affecting human development. Log values are taken to reduce variation and to reflect diminishing importance of income with increase in it on provision of human development. Log values increase at a decreasing rate which means that the increment in income will add to the index value but comparatively lesser than increment in other indicators. It was suggested that log value should be used even for other indicators but no empirical evidence was found of their declining importance with increment in their value. The data for life expectancy is provided by the United Nations Department on Economic and Social Administration, the data on education is provided by UNESCO Institute of Statistics and data on GNP is taken by evaluation from the World Bank and IMF. In case of missing data 2 possible methods are used: a. Taking data of neighbouring countries as substitutes b. Taking long term average (25-30 years) to substitute the value If both of these are missing then data is collected by using substitution technique from any relevant study in the past. Criticisms of HDI 1, Itdoes not include parameters of poverty and inequality. 2. The index has no parameter for gender inequity. 3. It does not reflect clearly the qualitative aspects of indicators. To cover for the criticisms, the Human Development Report started including certain measures from 2010. They include: a. Gender development index which is calculated by taking a ratio of HDI of female to HDI of male in a country. GDI = HDI of female/HDI of male 16|PageInclusive Growth (Notes) GS Pre cum Main Foundation Course for CSE 2022 | Vibhas Jha Sir b. HDR also measures inequality adjusted HDI where a country is penalised by reducing its human development score on the basis of inequality. c. Multidimensional poverty index which measures poverty on the basis of 10 parameters like accessibility to primary education, drinking water, availability of basic minimum calories etc. According to this parameter, 55.6% of the population in India was found to be poor and 27.3% of India’s population was severely poor. Multidimensional Poverty Index (MPI) ¢ The Multidimensional Poverty Index was launched by the UNDP and the Oxford Poverty & Human Development Initiative (OPHI) in 2010. e MPI is based on the idea that poverty is not unidimensional (not just depends on income and one individual may lack several basic needs like education, health etc.), rather it is multidimensional. * The index shows the proportion of poor people and the average number of deprivations each poor person experiences at the same time. © MPI is significant as it recognizes poverty from different dimensions compared to the conventional methodology that measures poverty only from the income or monetary terms. MPT uses three dimensions and ten indicators which are: 1. Education: Years of schooling and child enrollment (1/6 weightage each, total 2/6); 2. Health: Child mortality and nutrition (1/6 weightage each, total 2/6); 3. Standard of living: access to electricity, type of flooring, access to drinking water, access to sanitation, type of cooking fuel and type of assets (1/18 weightage each, total 2/6) * A person is multidimensionally poor if she/he is deprived in one third or more (means 33% or more) of the weighted indicators (out of the ten indicators). Those who are deprived in one half or more of the weighted indicators are considered living in extreme multidimensional poverty. 17|PageInclusive Growth (Notes) GS Pre cum Main Foundation Course for CSE 2022 | Vibhas Jha Sir * Since the adoption of the 2030 Agenda, UNDP has closely aligned the MPI with the Sustainable Development Goals (SDGs) as MPI is one of the preeminent tools to understand the many forms of poverty experienced by those left behind. © The 2018 global MPI sharpens the picture of poverty worldwide, but it is about more than SDG-1 (End poverty in all its forms everywhere). The MPI assesses the intersecting impact of policy choices across multiple SDGs, and it gives evidence to support integrated responses to complex development challenges. © A key advantage of the MPI is that it not only provides a headline number for each country, but it can also be broken down by indicator to show what deprivations create poverty in that country. Gender Inequality Index (GI) © The gender inequality index (GII) provides insights into gender disparities in health, empowerment and the labour market. Unlike the human development index (HDI), however, higher values in the GIl indicate worse achievements. © The Gender Inequality Index is a composite measure reflecting inequality in achievements between The GIl is a composite measure, reflecting inequality in achievements between women and men in three dimensions: reproductive health, empowerment and the labour market. The health dimension is measured by the maternal mortality ratio and the adolescent fertility rate. © The empowerment dimension is measured by the share of parliamentary seats held by each gender, and by secondary and higher education attainment levels. * The labour dimension is measured by women's participation in the workforce. * The Gil varies between 0 (when women and men fare equally) and 1 (when men or women fare poorly compared to the other in all dimensions). It is designed to reveal the extent to which national human development achievements are eroded by gender inequality, and to provide empirical foundations for policy analysis and advocacy efforts. 18|PageInclusive Growth (Notes) GS Pre cum Main Foundation Course for CSE 2022 | Vibhas Jha Sir Physical Quality of Life Index (PQLI) Morris D. Morris developed "Physical Quality of Life Index (PQLI)". He included three indicators like life expectancy, infant mortality rate and literacy rate. For each indicator he devised a scale which includes the numbers ranging from 1 to 100 where 1 represents the worst performance by any country and 100 is the best performance. For life expectancy, the upper limit of 100 was assigned to 77 years which was achieved by Sweden in 1973, and the lower limit of 1 was assigned to 28 years which was the life expectancy of Guinea-Bissau in 1960. The PQLI method is superior because it is devoid of those flaws which exist in per capita GNP measure. The PQLI measure keeps in view the welfare considerations, and it attaches the fruits of economic growth with human betterment. The GNP measure is criticized that it does not throw light on the distribution of income, whereas the PQLI also analyses the nature of distribution of income as the more life expectancy, decrease in infant mortality rate (IMR) and increase in literacy rates can become possible due to better distribution of income. The PQLI can also be used like the GNP method to make comparisons between countries. But PQLI is objected to on the ground that it is a limited measure, it has not included so many social and psychological properties which have been identified by the measure of quality of life, as the case of security, justice and human rights. This is the reason that the Population Crisis Committee and the International Human Suffering Index reformulated it in 1987. Indicators of PQLI This index has been employed to measure the difference in living. In such index of suffering 10 following indicators have been included: 1. Income 2. Inflation 3. Chances of new jobs Pressure of population in urban areas The infant mortality rates Nutritional level Nn oP Clean water 19|PageInclusive Growth (Notes) GS Pre cum Main Foundation Course for CSE 2022 | Vibhas Jha Sir 8 Use of energy 9. Adult education 10. Personal freedom. On the basis of this measure the highest 'Sufferings' was observed in case of Angola and Afghanistan, while the best living conditions were observed in case of the countries like Switzerland, Germany and Luxembourg. The PQLI is also objected to because it gives equal weightage to the indicators like IMR and life expectancy. Global Hunger Index The Global Hunger Index (GHI) is a tool designed to comprehensively measure and track hunger at global, regional, and national levels. GHI scores are calculated each year to assess progress and setbacks in combating hunger. The GHI is designed to raise awareness and understanding of the struggle against hunger, provide a way to compare levels of hunger between countries and regions, and call attention to those areas of the world where hunger levels are highest and where the need for additional efforts to eliminate hunger is greatest. Measuring hunger is complicated. GHI scores are calculated using a three-step process that draws on available data from various sources to capture the multidimensional nature of hunger. First, for each country, values are determined for four indicators: - UNDERNOURISHMENT: the share of the population that is undernourished (that is, whose caloric intake is insufficient); - CHILD WASTING: the share of children under the age of five who are wasted (that is, who have low weight for their height, reflecting acute undernutrition); - CHILD STUNTING: the share of children under the age of five who are stunted (that is, who have low height for their age, reflecting chronic undernutrition); and - CHILD MORTALITY: the mortality rate of children under the age of five (in part, a reflection of the fatal mix of inadequate nutrition and unhealthy environments). 20|PageInclusive Growth (Notes) GS Pre cum Main Foundation Course for CSE 2022 | Vibhas Jha Sir Second, each of the four component indicators is given a standardized score on a 100-point scale based on the highest observed level for the indicator on a global scale in recent decades. Third, standardized scores are aggregated to calculate the GHI score for each country, with each of the three dimensions (inadequate food supply; child mortality; and child undernutrition, which is composed equally of child stunting and child wasting) given equal weight. This three-step process results in GHI scores on a 100-point GHI Severity Scale, where 0 is the best score (no hunger) and 100 is the worst. In practice, neither of these extremes is reached. A value of 0 would mean that a country had no undernourished people in the population, no children younger than five who were wasted or stunted, and no children who died before their fifth birthday. A value of 100 would signify that a country’s undernourishment, child wasting, child stunting, and child mortality levels were each at approximately the highest levels observed worldwide in recent decades. Conc Eek) extremely alarming Gross National Happiness Index (GNH) © The phrase ‘gross national happiness’ was first coined by the 4th King of Bhutan, King Jigme Singye Wangchuck, in 1972 when he declared, “Gross National Happiness is more important than Gross Domestic Product.” The concept implies that sustainable development should take a holistic approach towards notions of progress and give equal importance to non-economic aspects of wellbeing. Since then the idea of Gross National Happiness (GNH) has influenced Bhutan’s economic and social policy, and also captured the imagination of others far beyond its borders. In creating the Gross National Happiness Index, Bhutan sought to create a measurement tool that would be useful for policymaking and create 21|PageInclusive Growth (Notes) GS Pre cum Main Foundation Course for CSE 2022 | Vibhas Jha Sir policy incentives for the government, NGOs and businesses of Bhutan to increase GNH. @ The GNH Index includes both traditional areas of socio-economic concern such as living standards, health and education and less traditional aspects of culture and psychological well being. It is a holistic reflection of the general wellbeing of the Bhutanese population rather than a subjective psychological ranking of ‘happiness’ alone. The GNH Index includes nine domains: Psychological well being Health Education Time use Cultural diversity and resilience Good governance Community vitality Ecological diversity and resilience Sena PF YN PP Living standards The GNH Index is decomposable by any demographic characteristic, meaning it can be broken down by population group, for example, to show the composition of GNH among men and among women, or by district, and by dimension, for example to show which group is lacking in education. The indicators and domains aim to emphasise different aspects of wellbeing, and different ways of meeting underlying human needs. e The GNH index is based on the Alkire-Foster method of multidimensional measurement, which has been adapted for this purpose. It identifies four groups of people: - Unhappy - Narrowly happy - Extensively happy - Deeply happy. 22|PageInclusive Growth (Notes) GS Pre cum Main Foundation Course for CSE 2022 | Vibhas Jha Sir The analysis explores the happiness people enjoy already, then focuses on how policies can increase happiness and sufficiency among, the unhappy and narrowly happy people. Classification as Developing, Emerging and Developed (Discussed in class) Characteristics of a Developing Economy FF SPP een nr 10. 11. 12. 13. 14. 15. Low GNP per capita Scarcity of capital Rapid population growth and high dependency burden Low levels of productivity Technological backwardness High levels of unemployment and underemployment Lower level of human well-being Wide income inequalities High incidence of poverty Agrarian economy Lower participation in foreign trade Traditional social life Far less developed human capital Lack of social discipline and ineffective legal system Dualism in the economy Dualism in Indian Economy At present, the Indian economy is characterised by a dualistic economic structure where a modern economy is existing along-with a primitive traditional economy. Dualism is one of the important characteristics of an underdeveloped economy. So under dualism, two sectors, ic., modern or advanced sectors and traditional or backward sectors exist and operate side by side. 23| PageInclusive Growth (Notes) GS Pre cum Main Foundation Course for CSE 2022 | Vibhas Jha Sir Dualism may be broadly of two types, ie., technological dualism and social dualism. Technological Dualism indicates the applications of different production functions in the advanced sector as well as in the traditional sector. Under this dualism, the advanced sector is capital-intensive and the backward sector is labour-intensive. Again Social Dualism indicates two different strata, i.e. upper strata and lower strata in the society. Boeke’s social dualism indicates the presence and conflict of an alien social system with an indigenous social system of the country itself. In India, social dualism is limited and such consequent conflict is nascent. But in Indian economic structure, technological dualism prevails. In this type of dualism, productive employment opportunities are limited; not because of lack of effective demand, but because of resources and technological restraints in the two sectors. Ina less developed country like India, the economy is represented by the traditional rural sector characterised by peasant agriculture, small and cottage industries and handicrafts which are largely adopting labour- intensive techniques of production. On the other hand, the economy is also supporting an advanced modern sector consisting of large-scale industries, like mining industries, iron and steel, plantations, power plants etc. which are characterised by fixed technical coefficients, lower degree of substitutability of factors and largely adopting capital-intensive techniques of production. Again India is facing a peculiar situation where the country is facing population explosion resulting from increasing natural growth rate of population and slow growth of employment opportunities in the industrial sector due to its fixed technical coefficients. Due to this low rate of absorption of labourers in the industrial sector, more and more labourers are being engaged in the agricultural sector due to its variable technical coefficients. This increasing absorption of labour force in the agricultural sector has resulted in an increase in the ratio of labour to both land and capital. Moreover, the increasing absorption of labour has been resulting in disguised unemployment in the agricultural sector. Due to this excess labour supply, labour productivity, levels of technology, pace of mechanisation remain low in the agricultural sector. 2a| PageInclusive Growth (Notes) GS Pre cum Main Foundation Course for CSE 2022 | Vibhas Jha Sir Another peculiarity of technological dualism exists in the Indian labour market where an artificially high wage rates prevail among the organised industrial labourers due to increasing trade union activity and direct intervention by the government in the labour market. Simultaneously, the level of wages in the unorganised rural sector remained low. Thus considering all these peculiarities, Indian economy can be considered as a dualistic economy. 25|Page