Reality Check India

Inclusive growth tutorial

Posted in Uncategorized by realitycheck on June 29, 2009

To start your week, here is a brilliant piece that gives you unprecedented insight into how a political system of stationary bandits work.

We constantly hear the phrases ‘inclusive growth’ in the electronic media, but have always wondered what it meant. Does it mean everytime an Indian citizen grows from a bicycle to a  motorcycle, a tiny ‘vacuum of inequality’ gets created ? If there really is such a ‘vacuum’, does it necessitate the involvement of the great socialist state ?

Check out this article, I have highlighted the excellent parts.

In a few days from now the first Budget of the new United Progressive Alliance (UPA) government will be presented in Parliament. This Budget would surely try to provide the financial support to a roadmap of policies spelt out in President’s address of June 4. “In 2004 my government had set before the country a vision of an inclusive society and inclusive economy. My government sees the overwhelming mandate it has received as a vindication of policy architecture of inclusion that it put in place. It is a mandate for inclusive growth, equitable development and a secular and plural India”.

Well this really is not the first budget, they have been doing this for the past 60 years.  Let us see what this ‘political architecture’ (gotta love this one) of inclusion means.

What is exactly meant by inclusive growth, which has been presented as equivalent of equitable development as the mandate of the government? Are the two concepts similar, implying a similar set of policies? Are there differences even for the same country and for the same period of time? An examination of these issues would allow us to evaluate the policies of the next Budget, meant to fulfil the mandate of the government.

Highly ambitious of the author to be able to answer all these questions in a tiny op-ed. Good, we can look forward to the rest.

Development literature, however, went much beyond in the 1980s and 1990s and brought in the concept of equity, in terms of reduction of inequality and the promotion of distributive justice. That meant a redefinition of poverty encompassing not only the lack of adequate income or purchasing power but also education, health and other determinants that sustain a rising standard of living. The reduction of inequality thus became an essential determinant of increasing welfare and development.

So, we are now being told that poverty is not just about being poor, but also being unequal in other ‘mysterious ways involving other determinants’. This means you could be in poverty, yet arrive to work in a car. Despite all of this, make no mistake that all arguments in favour of state intervention will advance ‘being poor (the without enough dough version)” as the reason for their intervention. Any state redistributive intervention will of course be via the sponge-like socialist machine.

 To conclude,

They are expecting equitable growth — with a larger share of the pie today to compensate for centuries of deprivation.

Source : DC

Thats more like it !

3 Responses

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  1. reason said, on June 29, 2009 at 2:39 pm

    Do we want “inclusive growth, equitable development”, or “Inclusive development, equitable growth”? It was just mental masturbation.

    They can get on with the program. Our headlines will be about Gay parades.

  2. reason said, on July 9, 2009 at 2:54 pm

    check this out –

  3. rc said, on July 14, 2009 at 3:00 am


    The PMK is on the right track. They realized now that workign for a larger good is counterproductive when they are elected by a narrower interest.

    The example of course is the exceptional hard work put in by the PMK to secure the BC quota at IIT/IIM/AIIMS but no efforts to secure MBC quota (which constitutes their core voter base).

    This stuff rarely goes unpunished.

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