Development Imperatives : Development Imperatives Dr. B. Yerram Raju The Fundamentals : The Fundamentals Freedom
Refers to what economists call capability of ‘doing this or that’ or ‘to do this or that’ in the pursuit of the ‘good of the society.
Involves protection of
The Right not to be hungry
The Right to shelter
The Right to freedom from disease and squalor
The Right to education
The Right to livelihood and the like. 2 copyright: yerramraju Development is --- : Development is --- Removal of
Illiteracy and ill health
And is one of ensuring participation in Government
Growth is derivative of the foregoing and not GDP 3 copyright: yerramraju Core Tenets of Development Consensus : Core Tenets of Development Consensus The need for raising domestic savings ratio
Industrialization with emphasis on building capital goods sector
An forward-looking trade strategy characterized by import substitution in a wide range of industries and export competitiveness as two wheels of trade development
Progressive investment and allocation – FII and FDI calibration and watchful interventions. 4 copyright: yerramraju Savings as engine of Growth- Reservations : Savings as engine of Growth- Reservations The ability of the Government to raise aggregate savings when households can anticipate the policy impacts on future income streams and adjust their savings accordingly.
An increase in the savings ratio provides only a temporary rather than a permanent boost to the rate of economic growth.
Year-on-year changes in domestic product suggest that only a part of growth can be explained by capital accumulation or increases in employment.
Strong link between savings, technological innovation and knowledge management. 5 copyright: yerramraju Pitfalls of Industrialization : Pitfalls of Industrialization Industrial expansion generates a net increase in demand for food even when large scale disguised unemployment and underemployment in agriculture surfaces.
SEZs are monumental strategic failures because of poor location, improper regulation and monitoring and indiscriminate legal encroachment of agricultural lands.
Emergence of Food and Forex Constraints. 6 copyright: yerramraju Infrastructure holds the key : Infrastructure holds the key Size of investments in Power, Roads, Ports, Roads are beyond the capability of Government
A calibrated policy for PPP becomes imminent
Long term strategy for investment without sacrificing the HR interests
Education to move in tandem with infrastructure expectation
Engineering, polytechnic and other technical education to move in tandem
Employment, wage and social security policies to move also in tandem 7 copyright: yerramraju Agriculture in Economic Development : Agriculture in Economic Development Intersectoral balance to be maintained
Food prices hold the key to inflation
Balance of payments to be kept in watch
Macro economic stabilization depends on managing the food surplus
Farm Subsidies – quantum, direction and utilization hold the key for farm growth
System of Minimum Support Price
Watchful flow of credit for agriculture – Investment credit and Short term credit to flow at even pace
Agriculture Marketing needs reform to distance from the strangle hold of politicians.
Strengthening rural credit institutions – Cooperatives in particular, RRBs, and Commercial Banks- is the key for farm growth 8 copyright: yerramraju Compatibility : Compatibility Advances in genetic engineering and biotechnology have profound influence on the future human formations
Natural Resource Generation and balanced growth in Forestry, Horticulture, Animal Husbandry, Pisciculture hold the key for sustainable agriculture growth.
Remote sensing of Earth will lead to monitoring, assessment and analysis of events and resources at and below the surfaces of land and sea.
Mitigation of natural disasters like floods, cyclones, holocausts, earthquakes, and landslides, critical
Restorative Agriculture (Prescription farming), Precision Farming, Climate optimization techniques, soil treatment and plant types, Water optimization and integration between surface and ground water resources will have to rule the future reform in farm sector. 9 copyright: yerramraju Rural Development – Key Factors : Rural Development – Key Factors Managing Population
Managing Environment and Resources
Managing Information Technology
Managing Tensions and Public Issues
Micro Credit and Micro Insurance and SHG efforts to improve with easy and cost-effective flow of resources – Regulation should be with the Central Bank of the country. 10 copyright: yerramraju Strengths : Strengths Well regulated financial system
Improving Public Enterprises in Oil, Airlines, Heavy Machinery, Nuclear technology and Banking
A Youthful nation – with energy and enthusiasm bubbling
Scientific and technological institutions graduated to meet the growing demands in research and development
Entry and Exit norms for foreign investments liberalized
Regulatory mechanisms calibrated for growth. 11 copyright: yerramraju Still Problems Galore : Still Problems Galore Inefficient and almost failed PDS
Subsidies led to inefficient use of inputs and low total factor productivity in agriculture
Tampering with Repayment culture thru periodical loan write-offs and interest write-offs came in the way of equity and discipline in institutional farm credit dispensation
State-run Irrigation works, Electricity Boards (GENCOs and TRANSCOs) Procurement and PDS are monumental failures and wasted resources
Flow of resources to rural areas still impeded
Narrow politics at all levels coming in the way of Growth. 12 copyright: yerramraju Unfinished Agenda : Unfinished Agenda Reforms in the Farm Sector
Spot Exchanges, Grain Storage and Futures Markets inter-relationship to be strengthened
Special Economic Zones and Open Cities to be monitored and strengthened to create employment and enhance global competitiveness in infrastructure
Analyze public expenditure programmes to ensure that poor actually benefit from them
Strengthen and reform the forestry sector to ensure environment conducive to economic growth
Off-farm and non-farm livelihood opportunities should turn out as economic opportunities for poverty alleviation
Capacity Building to hold the key for infrastructure growth. 13 copyright: yerramraju So……. : So……. Self-reliance can be achieved only by practice of self-help within local communities
Practicing self-help pre-supposes an enabling socio-economic and legal environment
Empowerment of communities and individuals have to move hand-in-hand
Poverty and Access To Endowments are closely connected in an inverse geometric proportion.
State Intervention shall remove disability or access to endowments for the extremely poor.
Federal structure shall only facilitate and not impede the strategic approaches to reducing poverty. 14 copyright: yerramraju Slide 15: Thank you 15 copyright: yerramraju