Taking
"Inclusive Development" from Myth to Reality
Vol - XLVII No. 52, December 29, 2012 | Mazher Hussain
The Planning Commission of India posted the draft Document
of the 12th Five year Plan on its website in the first week of December 2012
for feedback from the public before it is adopted by the National Development
Council (NDC) on 28 December and declared the Five Year Plan for the country
from 2012 to 2017. The stated vision of the Plan Document is “of India moving
forward in a way that would ensure a broad-based improvement in living
standards of all sections of the people through a growth process which is
faster than in the past, more inclusive and also more environmentally
sustainable”. This mantra of “faster, sustainable and more inclusive growth”’
is indeed ideal and laudable, but the question is how can we make it possible?
More importantly, what could be the consequences if we fail?
Mazher Hussain (mazherhussain11@gmail.com
) is with COVA, a national network working on communal harmony in India and
peace in South Asia. He was also a member of a Steering Committee of the
Planning Commission, Government of India, for the preparation of the Approach
Paper for the 12th Five Year Plan.
Planning Commission of India first started talking of
“inclusive growth” as an objective while formulating the 11th Five Year Plan
which was in operation from 2007 to 2012. But we find that while this 11th Plan
succeeded in achieving a remarkable rate of growth, it also witnessed
impoverishment and exclusion of large sections of the populations from benefits
of development. This was because of the singular focus of the planners on
growth and not on distribution with the assumption that accelerated growth
would trickle down to benefit all. Unfortunately this has not happened. On the
contrary, the disparities seem to have increased.
11th Plan: Exclusion and Deprivations
Despite an average 7.9 per cent growth in GDP (Gross
Domestic Product) during the 11th Plan Period -sometimes peaking to 9 per cent-
the performance of India in terms of the Human Development Index (indicative of
inclusive growth and the extent of population benefiting from development) saw
a downward slide from 128th and 127th positions in 2000 and 2005 respectively
to 134th position in 2009 and 2011. While a handful are reaping benefits and
have entered the billionaires club, millions are being forced into deprivation
and disempowerment. For the first time in history, four Indians found a place
amongst the 10 richest people of 2009, but three out of every ten poor people
in the world in the same year were also Indians - an unusual phenomenon of
continuing poverty and marginalisation in the midst of galloping plenty.
While Planning Commission of India accepts GDP as a measure
for assessing growth, it has not taken any steps to adopt any tool to
quantitatively measure “inclusive growth”. Models and measures are indeed
available to determine inclusivity of growth in the form of Gini Coefficient
(the measure of income inequality) and HDI (Human Development Index) etc., but
what seems to be lacking is the appropriate development philosophy and
political will to adopt them. With such systemic privileging of “growth” and
gross omission of any measures to assess “inclusion”, our planning process has
taken a trajectory that has resulted in the doubling of inequity in incomes in
India during the last 20 years, making it the worst performer on this count of
all emerging economies according to a report of OECD (Organisation of Economic
Cooperation and Development) released in December 2011. The OECD Report further
shows that the top 10 per cent wage earners in India now make 12 times more
than the bottom 10 per cent. Ironically, this was also a period when the GDP of
the country started increasing at an unprecedented rate making it one of the
fastest growing economies in the world.
Further, despite all assertions of social inclusion, India
spends an abysmal 5 per cent of its GDP on social protection schemes as
compared to more than 15 per cent by Brazil, and during the last two decades
India’s Gini Coefficient has climbed from 0.32 to 0.38 with 0 being the ideal
score.
Conflicts: A Product of Inequity and Marginalisation
The deprivation and exploitation of millions of poor seems
to be turning them against the system as they find themselves more and more
excluded from the benevolent and protective character of the State. This
disenchantment and exclusion of the masses is getting translated into a variety
of social and political conflicts and manifests itself as agitations, riots,
resistance, militancy and even demands for secession organised around caste,
class, communal, regional and ethnic lines. Already one-third of the country is
afflicted by some form of serious conflict due to the exploitative and
unsustainable philosophy of growth we seem to be pursuing. Even the Planning
Commission has explicitly stated in its Plan Document for the 12th Five Year
Plan that “agitations around land acquisition, deforestation, water use, air
and water pollution, and also our response to natural disasters have become
more and pose challenges which this Plan must address squarely.”
If left unaddressed, all these conflicts could lead to
increased violence between more and more groups and communities, set ablaze
most of the country and have the potential of bringing down the legitimacy of
the state and cause irreversible damage to the national polity. Hence, it is
imperative that any planning process of the State should also focus on
deliberations about how development in different spheres is contributing to
generation/enhancement of conflicts and explore the possibility of using the
planning process for mitigation of conflicts rather than provide conditions for
their accentuation as seems to be the case now.
Adoption of Multiple Parameters
The Plan Document asserts that “our focus should not be just
on GDP growth itself, but on achieving a growth process that is as inclusive as
possible” and rightly accepts that “strong inclusive growth is the only scenario
that will meet the aspiration of the people”. But in terms of its approach and
methodology, it unfortunately continues its primary focus on providing impetus
to “growth” ( fixing a target of achieving 9 per cent GDP growth), but adopts
no methodologies to measure and monitor “inclusive growth” despite explicitly
mentioning that “the extent of inequality is measured by indices such as the
Gini coefficient”. If the Planning Commission is indeed serious and honest
about “inclusive growth” then it should also fix targets for Gini coefficient,
HDI and other such measures also. Otherwise it would appear that “inclusive
growth” is being used more as a slogan for effect than a parameter for the
planning process.
Endgame
It is rightly said that growth for the sake of growth is the
philosophy of a cancer cell. Whether we are the RBCs (Red Blood Corpuscles) or
cancer cells for Mother Earth, the option can change with the Twelfth Plan. All
that is required is a politics oriented towards the underprivileged, a will that
can resist corporate greed and the power of international capital
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