Equality inequality..

What actually is an inclusive sector or rather is there any sector termed like that? The term inclusive growth is more of a hypothesis on which concepts like privatization or public sector interference are sold.


Even if we sit and understand the term ‘inclusive’, we will realize that it entails sustained growth based on sectors that can leverage a major portion of a country’s population, through not only employment but a productive one too. Any inclusive growth promises to remove poverty in its absolute sense, and is a pro-poor policy. In a nutshell, it talks about equality, and that too not wholly measured on the income, but even assets. Now, let us ponder of a country that is an inclusive growth country or is there any? Even if we take Germany who has the highest population in European Union, where GDP runs in trillions, has seen a steady rise in poverty in last two decades.


What is India’s solution to inequality? If we stick to inclusive growth, agriculture which still provides employment to around 60 percent of India’s population has undergone changes in terms of assets distribution. More than 80 percent of Indian farmers are marginalized. Without doubt it could be said that marginalized farmers, people from unorganized sectors who were once farmers, form a major part of more than 800 million poor people of India.


Inclusive growth is evident in the financial sector of India with micro-finance and insurance tapping rural markets. But, even micro-finance pioneered by Grameen Bank have faced challenges in the second phase with easy credit systems, and identifying ‘defaulters’ to reach millions of poor. In India, micro-finance concepts are sold to remove income inequality by granting easy to pay loans, and less collateral, but have found tightening the noose in recent times.


Public sector control on the economies is no guarantee for less inequality, simply due to the lack of resources to channelize the funds in the direction of mass improvement in terms of income and assets. Privatization means the exploitation of resources, and creation of wealth among few individuals. Disparity I think will always prevail with the current development scenarios.


Information technology which boasts of creating employment, and also puts pressure on education system in India has a bleak future. If India truly wants information technology to reduce income gaps, then product innovation is the key. India has to go the Israel’s way.


Sadly, our idea of working towards equality has been an institutional failure. Logic says, agriculture is the sector through which inclusive growth is possible. Pace and pattern which are the key to the meaning of inclusive growth is missing in India.