This visionary and thought-provoking study is a must read for political leaders, policymakers, business executives, and leaders of civic society interested in India's long-term development. It presents a much needed longer term vision of Indian society and economy within which today's policy debates and actions must be anchored. The volume presents a persuasive case that if India succeeds in sustaining its recent economic success over the longer term (as many East Asian economies have done in the past), India can realistically aspire to become an affluent society within one generation. The study is being released just as the new Indian government is taking office in a political environment that presents a truly unique opportunity to put India into a longer term sustained growth trajectory with financial stability.
Chapter 5: Inequities and India's Long-Term Growth: Tackling Structural Inequities
Inequities and India's Long-Term Growth: Tackling Structural Inequities
[Page 68][Page 69]Does inequality matter for long-run development in India? With the extraordinary acceleration in growth of the past 25 years, can't troublesome arguments over distribution be put aside? Rapid growth is indeed the most effective way of improving the incomes of the poor and generating government revenues for service provision in the long term. But is this story incomplete?
Questions over inequality are usually framed in terms of whether all Indians are adequately sharing in this extraordinary burst in aggregate economic performance. Incomes of the poor have increased significantly, but at a slower pace than overall growth in incomes per capita. Malnutrition in rural areas has failed to go down, ...