TRIVANDRUM MANAGEMENT ASSOCIATIONSilver Jubilee Management Convention TRIMA 2011

1

THEMEINCLUSIVE GROWTH FOR DEVELOPMENT

2

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

3

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

4

Inclusive Growth : Strategy for Economic Development -1Inclusive 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.

5

Inclusive Growth : Strategy for Economic Development -2Growth is inclusive when it creates economic opportunities along with ensuring equal access to them.

6

The Sharper focusInclusive 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.

7

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

8

The 11th 5 year Plan of India 2007-2012This five year plan focuses on inclusive growth Social Sector services Agriculture Industry Services Physical Infrastructure

9

WORLD ECONOMIC FORUM, DAVOS, SWITZERLAND Jan 2011India Focus: Inclusive Growth

10

Indias Growth StoryPERIOD AVG GDP GROWTH/YEAR (%)

1st 30 years after independence

3.5

1980s1990s

5.65.8

2005 to 20102011

8.59.0 (Est)11

FUTURE GDP GROWTHIndia: 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.12

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)

13

The Socio-Economic divide in India -1

14

The Socio Economic Divide in India -2

15

The Socio Economic Divide in India -3

16

Socio Economic Divide in India -4

17

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

18

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 day19

FOUNDING FATHERS CONCEPTBefore 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 GandhiSource: genderit.org

20

FOUNDING FATHERS CONCEPTLoyal and efficient work in a great cause, even though it may not be immediately recognized, ultimately bears fruit ---- Jawaharlal NehruSource: thinkexist.com

21

Late Prime Minister Indira Gandhis take on Inclusive GrowthWe have believed and we do believe now - that freedom is indivisible, that peace is indivisible, that economic prosperity is indivisibleSource: thinkexist.com

22

PRIME MINISTER DR MANMOHAN SINGHS VIEWSIf 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

23

Infrastructure & Inclusive GrowthGeneral 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.

24

Infrastructure - 1Hard 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 etc25

Infrastructure - 2Soft Infrastructure: Social ( Education, Healthcare, Social Welfare etc) Industrial ( Manufacturing, SEZ etc) Institutional ( Financial system, Information Technology, Governance etc)

26

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

27

Critical areasThe 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

28

Role of all stakeholdersEvery 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.

29

Kerala and Inclusive Growth -1India 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 Health30

Kerala and Inclusive Growth -2India 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

31

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

32

Social Sector: Education

33

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 Obama34

Primary Health Centre

35

Social Sector: Healthcare

36

Social Sector: Corporate Social Responsibility -1

37

Social Sector: Corporate Social Responsibility -2

38

Social Sector: Corporate Social Responsibility -3

39

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

40

Role of Small and Medium Enterprises -1SME sector is estimated to account for 45 % of India's manufacturing output and 40 per cent of exports, employing 59 million people

41

Role of Small and Medium Enterprises -2

42

Relevance of Media -1

43

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

44

The Role of an NGO

45

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 Growth46

Role of Banks & Financial Institutions -1Is financial inclusion still a distant dream?

47

Role of Banks & Financial Institutions -2Some new innovations are seen now like the Bank Correspondent who is the low cost interface between a bank branch and the customer

48

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

49

Microfinance -1It 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

50

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.

51

Information Technology as a Driver for Inclusive Growth

52

Information and Communication Technology

53

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

54

India Shining

55

THANK YOU

56