TRIVANDRUM MANAGEMENT ASSOCIATION

Silver Jubilee Management Convention TRIMA 2011

THEME
INCLUSIVE GROWTH FOR DEVELOPMENT

Inclusive Growth
Inclusive growth as per the literal meaning of the two words, refers to both the pace and the pattern of the economic growth of a country
It focuses on economic growth which is a necessary and crucial condition, for poverty

reduction

Inclusive Growth
It adopts a long term perspective and is concerned with sustained growth.

Inclusive Growth : Strategy for Economic Development -1

Inclusive growth as a strategy of economic development, received attention owing to a rising concern that the benefits of economic growth, have not been equitably shared.

Inclusive Growth : Strategy for Economic Development -2

Growth is inclusive when it creates economic opportunities along with ensuring equal access to them.

The Sharper focus

Inclusive growth is now finding its way increasingly in the lexicon of government leaders, economists, planners, academicians and businessmen, not just in India but even in international forums.

UNITED NATIONS
Focus Area of the United Nations Millennium Development Declaration 2000 Improve the lives of the impoverished people in their countries by 2015

The 11th 5 year Plan of India 2007-2012

This five year plan focuses on inclusive growth Social Sector services Agriculture Industry Services Physical Infrastructure

WORLD ECONOMIC FORUM, DAVOS, SWITZERLAND Jan 2011

India Focus: Inclusive Growth

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Indias Growth Story

PERIOD AVG GDP GROWTH/YEAR (%)

1st 30 years after independence

3.5

1980s
1990s

5.6
5.8

2005 to 2010
2011

8.5
9.0 (Est)
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FUTURE GDP GROWTH

India: Currently a $1.3 Billion Economy with a population of 1.2 billion To sustain 9% growth and progress to a double digit growth rate, inclusiveness of all members of society in India is required.
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BPL: Tendulkar Committee Report

32.7% of population ( 410 million) are Below Poverty Line ( Less than $ 1.25/day UN factor) Kerala data just released and shows that 42 % families are below poverty line This is debatable (!) ( Source: The Hindu)

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The Socio-Economic divide in India -1

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The Socio Economic Divide in India -2

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The Socio Economic Divide in India -3

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Socio Economic Divide in India -4

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What is routine at the bottom of the pyramid?

Hunger Malnutrition

Employment insecurity
Poor or non existent social security Lack of proper Healthcare facility & support

Threat of livelihood

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Collective aspirations of the people at the bottom of the pyramid in India (?)
Moving out of poverty Give their children an opportunity for a better

life Build up some capital Have at least the basic needs of food, shelter & clothing met without thinking what will happen the next day
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FOUNDING FATHERS CONCEPT

Before you do anything, stop and recall the face of the poorest, most helpless destitute person you have seen and ask yourself, Is what I am about to do going to help him?
~ Mahatma Gandhi
Source: genderit.org

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FOUNDING FATHERS CONCEPT

Loyal and efficient work in a great cause, even though it may not be immediately recognized, ultimately bears fruit ---- Jawaharlal Nehru
Source: thinkexist.com

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Late Prime Minister Indira Gandhis take on Inclusive Growth

We have believed and we do believe now - that freedom is indivisible, that peace is indivisible, that economic prosperity is indivisible
Source: thinkexist.com

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PRIME MINISTER DR MANMOHAN SINGHS VIEWS

If those who are better off do not act in a more socially responsible manner, our growth process may be at risk, our polity may become anarchic and our society may get further divided. We cannot afford these luxuries.
Source: CII AGM

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Infrastructure & Inclusive Growth

General Perception: India with over 1.2 billion people has a serious problem of infrastructure and this will be an impediment to generate growth, particularly Inclusive Growth.

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Infrastructure - 1
Hard Infrastructure: Transportation (Road, Rail, airports, seaports etc) Energy ( Power, Natural Gas, Coal mines, petroleum etc) Water Management (Drinking water, sewage, irrigation etc) Communication (Postal, Phones, TV/Radio etc
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Infrastructure - 2
Soft Infrastructure: Social ( Education, Healthcare, Social Welfare etc) Industrial ( Manufacturing, SEZ etc) Institutional ( Financial system, Information Technology, Governance etc)

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World Bank & Inclusive Growth

The inclusive growth program is inspired by the World Bank's mission to help developing countries alleviate poverty

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Critical areas
The role of the Government would be to provide: An honest and transparent administration, enactment of appropriate laws and the resources and the infrastructure that will make it possible for the weakest Indians to receive the benefits of economic growth

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Role of all stakeholders

Every stakeholder namely the Government, bureaucrats, the public sector, private sector, NGOs, media and civil society, has not only a role to play but has to treat it as a challenge, to achieve the vision of the founding fathers and other leaders.

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Kerala and Inclusive Growth -1

India Today Study of all states:
Kerala ranks as No 1 in terms of

Governance And No 2 in Primary Education.

Rank No 3 in Primary Health
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Kerala and Inclusive Growth -2

India Today Study of all states
Kerala ranks as No 4 in the areas of

Infrastructure development, composite development and consumer markets

Rank No 8 for Agriculture and Micro Economy

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Session No 1: Importance of Social Sector for Inclusive Growth

Role of Education for Inclusive Growth

Importance of healthcare for Inclusive Growth

Corporate Social Responsibility &

Environment Protection

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Social Sector: Education

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State of the Union Address 2011 Meanwhile, nations like China and India realized that with some changes of their own, they could compete in this new world. And so they started educating their children earlier and longer, with greater emphasis on math and science.
.. US President Barack Obama
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Primary Health Centre

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Social Sector: Healthcare

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Social Sector: Corporate Social Responsibility -1

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Social Sector: Corporate Social Responsibility -2

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Social Sector: Corporate Social Responsibility -3

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Session No 2: Role of Industry, Media and NGOs for Inclusive Growth

Importance of Small and Medium Enterprises (SMEs) for Inclusive Growth The relevance of Media for Inclusive Growth

The Role of NGOs for Inclusive Growth

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Role of Small and Medium Enterprises -1

SME sector is estimated to account for 45 % of India's manufacturing output and 40 per cent of exports, employing 59 million people

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Role of Small and Medium Enterprises -2

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Relevance of Media -1

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Relevance of Media -2
A fine balance between business and journalism/editorial, perhaps is the way out for media to support Inclusive Growth (!)

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The Role of an NGO

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Session No 3: Role of Financial Institutions and IT in Inclusive Growth

Role of Banking and Financial Services for Inclusive Growth Importance of Microfinance for Inclusive Growth IT as a driver for Inclusive Growth
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Role of Banks & Financial Institutions -1

Is financial inclusion still a distant dream?

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Role of Banks & Financial Institutions -2

Some new innovations are seen now like the Bank Correspondent who is the low cost interface between a bank branch and the customer

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Microfinance -1
The MFI business focus is to provide small loans

to the poor and needy

Private MFIs get funds from banks at a low

interest rate and offer loans to those living below the poverty line at rates substantially cheaper than money lenders

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Microfinance -1
It is one of the great success stories in the developing world in the last 30 years and is widely recognized as a just and sustainable solution in alleviating global poverty.
Source: Opportunity International

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Microfinance -2
Many Private sector MFIs now tend to be more

profit oriented and wealth creation vehicles for their promoters.

Commercialization of Microfinance in India as

news reports suggest has the central government now planning to put in place a Regulator in the microfinance space.

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Information Technology as a Driver for Inclusive Growth

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Information and Communication Technology

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VISION 2020
President APJ Kalam spoke of his second vision i.e. to : see India as a Developed Nation

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India Shining

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THANK YOU

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