Multilateral newsletter february 2015

1Multilateral Newsletter

this IssueInside
Focus Story
IBSA: Platform for Shared Growth..........................................2
ADB
ADB President Lauds India’s Efforts at Accelerating Growth....6
India Signs Loan Agreement with ADB for US $350 Million
Loan to Upgrade District Roads in State of Madhya Pradesh...7
India Signs Loan Agreement with ADB For $50.2 Million
Loan to Support Assam’s Power Sector Improvement..............7
WORLD BANK
The National Ganga River Basin Project....................................8
February 2015, Volume 3, Issue 2
Message from Mr Chandrajit Banerjee, Director General, CII
In the era of growing multilateral engagement, the trilateral development initiative-India,
Brazil, South Africa Dialogue Forum (IBSA) connects three nations from three continents
of the developing world. The three member countries are multi-lingual, multi-cultured,
multi-religious and multi-ethnic.
India perceives IBSA as a coalition mechanism working towards three specific objectives:
first, as a forum for consultation and coordination on global and regional political
issues, such as WTO/Doha Development Agenda, climate change, terrorism etc.; second, promote trilateral
collaboration on concrete areas / projects; and third, assist other developing countries by taking up projects
in the latter through IBSA Fund.
The trilateral coalition is an excellent example of South-South co-operation. It has led to a number of positive
outcomes on an economic, political and development level. There is a need for India and other members to
further strengthen IBSA’s agenda, so that it benefits developing countries, at large, in a tangible manner.
This month’s focus story explores the opportunities for stepping up economic cooperation between India,
Brazil and South Africa under the aegis of the IBSA Trilateral Cooperation Forum.
The Newsletter also captures some of the key developments from the Asian Development Bank (ADB), the
World Bank (WB), OECD and International Labour Organization.
Chandrajit Banerjee
Multilateral
Himachal Pradesh has Effectively Balanced Economic
Growth with Social Inclusion:World Bank Report.................10
OECD
Seminar on Fighting Bribery in Business Transactions............11
Raising the Economic Participation of Women in India:
A New Growth Engine?.......................................................12
ILO
Private sector services and the care economy,
key engines of job creation..................................................13
NEWSLETTER

2 Multilateral Newsletter
The India, Brazil, South Africa Dialogue Forum (IBSA) connects three nations from three continents of the
developing world - India from Asia, Brazil from South America and South Africa from Africa. The trilateral
developmental initiative jointly formed by the Governments of India, Brazil and South Africa to share growth
and prosperity, promote trade and investment in the regions, and facilitate exchange of information, technology,
resources and outputs.
The idea originated after prolonged discussions between the Heads of State of the member countries at the
G-8 meeting in Evian, France in 2003 followed by subsequent meetings of the Foreign Ministers of the three
countries in Brasilia on 6 June 2003. IBSA got its formal recognition with the adoption and announcement of
the landmark "Brasilia Declaration.”
The core objectives of the Forum are:
To promote the trilateral exchange of information, international best practices, technologies and skills, as•
well as to complement each-others’ competitive strengths into collective synergies
To cooperate in a range of areas including agriculture, climate change, culture, defence, education, energy,•
health, information society, science and technology, social development, trade and investment, tourism and
transport
To organize South-South dialogue, enhance cooperation and develop common positions on issues of•
international significance
To promote trade and investment opportunities among the three regions of which they are a part•
To promote international poverty alleviation and social development programmes.•
IBSA collaborates at three levels. Firstly, it works as a platform for consultation and coordination on global and
regional issues like UNSC reforms, WTO agendas, climate change, terrorism, etc. Secondly, it undertakes trilateral
collaboration on identified areas through fourteen Working Groups and six People-to-People Forums for the
common benefits of member countries. The identified areas include culture, defence, education, energy, health,
information society, science and technology, trade and investment, tourism, etc. And thirdly, it is assisting other
developing and underdeveloped countries under various projects through IBSA Fund.
Economic Relations
IBSA represents about 25% of the population with about 1.45 billion people residing in these three countries
while the combined 2014 estimated economic size is a whopping $4.9 trillion. However, their regions’ share of
GDP is much bigger. This signifies the impact of the successful IBSA collaboration. However, the intra-IBSA trade
is merely 2% of their total trade.
No doubt, the trilateral trade between the countries has tripled over the last decade; from close to $9 billion
in 2006, it jumped to $23 billion in 2013 and most interestingly, IBSA is about to achieve the initial trade target
of $25 billion by 2015. These figures do reflect the true potential of Intra-IBSA trade.
Traditional services exports (transport and travel services) have declined in importance for India and Brazil but
not for South Africa. India’s services providers are doing business with IBSA mainly in the areas of emerging
service sectors like IT & ITES, energy, telecom and health.
Focus Story
IBSA: Platform for Shared Growth

The differences in the composition of services exports among the IBSA nations indicate a strong scope for trade
and cooperation among them in both traditional and emerging services. The sectors where trading opportunities
are present include travel, transport, IT and ICT, construction, and other business services. Due to absence of
specific trade data in services it is assumed that these potential opportunity segments exist for engagement
among these countries.
India
India has turned itself into a land of promises. From ITeS to entertainment, skill development to entrepreneurship,
boost in Science and Technology to innovations, India holds the space for a billion dreams. India can help Brazil
and South Africa in the following areas:
Entrepreneurship: The favourable economic environment in India has been fostering innovations and
entrepreneurship post-liberalization. India can help others develop macroeconomic policies to develop entrepreneur-
friendly atmosphere and work together on innovation projects.
Skills Development: India has developed skilled talent pool in software services, engineering goods, gems &
jewellery and garments. India can spearhead skill development programs in these sectors.
Tourism: India’s success to expand medical tourism, heritage sites and wildlife adventures drew global attention.
Member countries can collaborate to develop tourism infrastructure, work on joint initiatives to promote tourism.
Tourism exchange among member nations is less. This can be substantially increased.
IT & ITeS: India is undisputed leader in Information Technology (IT) and IT Enabled Services (ITeS). India can
provide outsourcing solutions to Brazil and South Africa. Moreover, technological integration through ICT can
boost inclusive growth.
Investment: Indian corporate sector is strong and large. Indian businesses are investing heavily in Europe, America
and Asia. Successful FDI policy can boost investment among member countries.
Entertainment: Indian entertainment industry is second largest in the world and undergoing rapid technological
changes. The entertainment industry can help foster cultural as well as social integration within IBSA. Collaboration
can help each other sharing technical skills in animations and special effects.
Science & Technology: India ranks among the leading nations in terms of the number of scientists and technical
experts. India has been quite successful in space and defence research recently. Brazil and South Africa can also
take advantage of India’s development in space and defence.
Brazil
Brazil has been quite ahead of others in many sectors. Its proximity to US has been a critical factor for the
success. This also means other members can leverage equally. There are many areas India and South Africa can
learn a lot from Brazil.
Agriculture: Brazil has quite successfully emerged as a major agricultural powerhouse of Latin America and ranks
among the world’s five largest agricultural producers and exporters. Its agriculture products range from coffee,
soybeans, wheat to rice, corn, sugarcane, cocoa, citrus and beef. Its major products for exports are coffee,
soybeans, beef, sugar cane, ethanol and frozen chickens. Advanced farming technology and farmers with extensive
experience and food processing facilities are major reasons for the success apart from favorable climate, arable
Focus Story

land and advance irrigation facility. Agriculture is of special importance to both India and South Africa. Brazil’s
experience and technology can help other members to increase productivity and overall output.
Food Processing: Brazil’s successful agriculture is supported by its successful Food Processing industry. In 2012,
its Food Processing industry generated $219 billion which is about 9.8% of the GDP. The industry is supported by
approximately 45,000 food processing companies. Apart from strong national enterprises, there are a number of
MNCs like Nestle, Unilever, Bunge, Kraft, Cargill, and Cadbury operating in Brazil. One of the secrets of its success
is unique channels or value chains which comprise retail, wholesale, and other food processing companies and
the foodservice segment. In addition, the industry follows strict standards to purchase or import ingredients.
Energy: The ethanol industry has been Brazil’s unique success. It is helping the nation to achieve energy
independence. Its booming ethanol industry was well supported by the private-sector-driven growth. The
government played a decades-long role in developing the industry. It also found biodiesel as a development tool
for rural communities. All these together, Brazil aspired to become a net energy exporter. Access to technology
and techniques will help India and South Africa.
Franchise Industry: While entrepreneurship found a success route in India, Franchise Industry has made a
remarkable entry in Brazil. The sector has been growing 10% to 13% annually for the past decade. According to
Sebrae, Brazil’s small business support department, the risk of failure in a franchise business is 15%, compared
to 80% for non-franchising businesses. This can also be a critical area of experience sharing among the member
nations.
Tropical Deforestation - The rate of deforestation in the Brazilian Amazon has dropped by 70% over the last
decade. Success is largely due to government policies and enforcement actions at both the federal and state
levels, concerted pressure exerted by NGOs on the government and also positive response by the soy and beef
industries. Deforestation for both India as well as South Africa is a key concern. Brazil has achieved success. It
can help India and South Africa.
South Africa
Many South African companies are working in India in various industries. South African companies produce world
quality productions. This has given competitive advantage to some of the industries that other IBSA members
can learn from.
Strength of Institutions, Financial Markets: South Africa has one of the strong financial markets and some of the
best financial institutions. It tops in Africa in the regulation of securities exchanges; stand second in soundness
of banks and third in financing through the local equity market. South Africa can help set Indian as well as
Brazilian financial markets to grow.
Tourism: Tourism is also one of the key competitive advantages of South Africa. It can help other member
nations to develop their tourism infrastructure and promote tourism.
IT Sector: Realising the true potential of technology, South Africa is strengthening its IT sector. The government
is active in promoting IT in education. The government is also willing to introduce IT facilitated Public Sector
Services and developing International IT links for knowledge and experience sharing. India and South Africa can
work together for mutual advantage.
Mining: Mining has been the main driving force behind South Africa’s growth and prosperity. South Africa has
the world's sixth largest mining industry. It has expertise in coal, gold, diamonds, Platinum and Chromium. In
Focus Story

Focus Story
1995, it modified its constitution to allow foreign ownership in mining projects. Vale, the largest South African
mining firm became a privately-run company. India needs a revamp in its mining sector. Brazil too needs to
develop and exploit its mining resources.
Fruit Processing Industry: South Africa exports 85% of its output of peaches, pears, and apricots and pineapples.
South Africa’s success in fruit processing technology and mechanism can help save huge fruits wastage in
India.
Chemicals Manufacturing Industry: Its chemicals manufacturing industry is compared with that of the successful
countries in key performance areas such as growth, competitiveness and productivity. It suffers from small
domestic sales market. While India and Brazil can be a huge market for them, South Africa can also help them
to develop chemical manufacturing industries.
Textiles: Textiles is the other sector South Africa has technical expertise while it faces shortages of various types
of fabrics. India is among the largest exporters of different kind of fabrics. Both countries can collaborate for
mutual growth and development.
This only means that each of the member countries has something unique to offer to other members. Foresighted
strategies can boost and accelerate fruitful collaborations. IBSA has huge promises. All three member countries
are multi-lingual, multi-cultured, multi-religious, multi-ethnic, multi-castes and multi-climatic. They share common
concerns; global issues like UNSC reforms, trade protectionism; social issues like poverty eradication, sanitation,
health care improvement; and economic issues like industrialization, skill development and Infrastructure
development. Successful collaborations will boost trade and mitigate common social malaises like poverty,
epidemics, water, sanitation, etc. not only in their countries but also in the three continents.

ADB
Asian Development Bank (ADB) President Takehiko Nakao met India’s
Prime Minister Narendra Modi and Finance Minister Arun Jaitley
to discuss ADB’s partnership with India as the government aims to
address the country’s development challenges.
At his meeting with the Prime Minister, Mr. Nakao lauded India’s
brighter growth prospects in the light of the government’s bid to
improve the business environment and accelerate infrastructure
investment. He commended efforts to introduce a goods and services
tax as it would unify internal markets and support economic growth
by removing tax distortions. He also highlighted the importance of
recent reform measures such as the reduction of fuel subsidies,
raising the foreign direct investment (FDI) ceiling in several sectors,
and fast-tracking infrastructure projects by expediting clearances.
ADB’s latest economic forecast for India published last December
projects a significant improvement from the 5.5% growth rate
expected in the current fiscal year to 6.3% in the year ending 31 March, 2016. The fall in global oil prices
should boost growth and reduce India’s current account deficit. The government’s commitment to a strong
macro-economic framework – and new initiatives to improve the investment climate such as the ‘Make in India’
campaign and a plan to build 100 smart cities – should attract strong FDI.
ADB achieved record lending of $3 billion in 2014 – of which $2.2 billion was for sovereign loans and $0.8 billion
to the private sector. Mr Nakao said: “ADB is planning to maintain the high lending level of $7-$9 billion during
2015-2017 to support the government’s vision of a faster, sustainable and more inclusive growth.
Among India’s most pressing challenges are addressing its infrastructure shortfall, especially in power and
transport. ADB will continue to finance new and improved roads and urban infrastructure, as well as renewable
energy, including the development of solar parks and transmission lines. In addition, ADB will support the
development of industrial and economic corridors. ADB is working with the government on the Vizag-Chennai
Industrial Corridor with a renewed focus on the manufacturing sector. ADB will also assist development of 10-
20 smart cities. Recently approved technical assistance (TA) to the Government of India will further support
the enabling environment for PPPs
Click here for more information
ADB President Lauds India’s Efforts at
Accelerating Growth

ADB
India Signs Loan Agreement with ADB for US $350
Million Loan to Upgrade District Roads in State of
Madhya Pradesh
The Government of India and the Asian Development Bank (ADB) India signed an agreement for a US $350
million loan to upgrade district roads in the state of Madhya Pradesh.
The Madhya Pradesh (MP) District Connectivity Sector project will improve about 1,600 kilometers of major
district roads in Madhya Pradesh through lane widening, surface improvements, strengthening of culverts and
bridges.
In addition to improving the roads, the project envisages to include five-year performance-based maintenance
contracts integrated as an adjunct to the construction contracts, to ensure road assets are constructed to higher
standards and well maintained after initial work is completed. The project roads will also be covered under an
accident response system being developed by the state, with assistance under ADB’s prior loans.
ADB’s loan will cover 70% of the total project cost of $500 million, with the state government of Madhya Pradesh
providing the balance of $150 million. It is expected to be completed by April 2018. Madhya Pradesh has a
road network of about 127,000 km, including 4,700 km of national highways, 11,000 km of state highways, and
20,000 km of major district roads. Rural roads make up the balance.
India Signs Loan Agreement with ADB For $50.2 Million
Loan to Support Assam’s Power Sector Improvement
The Government of India and the Asian Development Bank (ADB) signed a $50.2 million loan agreement to
continue to support improvements to transmission and distribution systems in the State of Assam for better
electricity service to end users.
The fourth tranche loan under the $200 million multi-tranche financing facility for the Assam Power Sector
Enhancement Investment Program will build on earlier loans which aimed to improve operational efficiency in
the sector through better transmission and distribution networks.
The project, which is expected to be completed by December 31, 2018, will help APDCL add an additional 222
megavolt amperes (MVA) substation capacity and reduce system losses by 4%. Part of the loan will be used to
enhance energy efficiency through renovation and modernization of existing 33/11 kilovolt (kV) substations. It
will also deliver a dedicated power supply to tea estates by undertaking feeder separation for better service to
the economically important tea sector.
The loan of $50 million from ADB’s ordinary capital resources makes up to 74% of the total project cost of
almost $68 million, with the Government of Assam providing counterpart finance of $18 million.

The Ganga is India's most important and iconic river. It flows
down from its glacial source in the high Himalayas to course
through five states in the northern plains before draining into
the swirling waters of the Bay of Bengal through the Sunderbans
delta, the largest mangrove system in the world. Along its 2,500
km journey, the river enriches huge swathes of agricultural land
and sustains a long procession of towns and cities.
The sprawling Ganga basin, an area of 860,000 sq km spread
across 11 states, is the world’s most populous river basin. It
is home to more than 600 million Indians, close to half the
country’s population; and over 40 percent of the country’s GDP
is generated in this region. The basin provides more than one-
third of India’s surface water, 90 percent of which is used for
irrigation. Paradoxically, this fertile region is also home to some
of the poorest sections of India’s population, with more than
200 million people living below the national poverty line.
As India's holiest river, the Ganga has a cultural and spiritual
significance that far transcends the basin’s boundaries. It is
worshipped as a living goddess and, since time immemorial, people from across the country have flocked to
the many historic temple towns the lie along the river’s banks to pray and bathe in its flowing waters.
Pollution in the Ganga
Despite this iconic status and religious heritage, the Ganga today is facing formidable pollution pressures, along
with the attendant threats to its biodiversity and environmental sustainability. An ever-growing population,
together with inadequately planned urbanization and industrialization, has affected the quality of the river’s
waters. Today, the Ganga’s waters are sullied by the incessant outpouring of sewage, as well as by the large
volumes of solid and industrial waste that are churned out by human and economic activity along the river’s
banks.
The absence of adequate infrastructure, along with weak environmental governance and little technical expertise
to manage these extreme pollution pressures, has resulted in the rapid deterioration of the water’s quality in
recent decades.
World Bank Assistance
The World Bank is supporting the Government of India in its effort to rejuvenate the Ganga River. The $1 billion
National Ganga River Basin Project is helping the National Ganga River Basin Authority (NGRBA) build institutional
capacity for rejuvenating the river. It is also financing key infrastructure investments in the five mainstem states
- Uttarakhand, Uttar Pradesh, Bihar, Jharkhand and West Bengal.
The National Ganga River Basin Project
WORLD BANK
STORY HIGHLIGHTS
The Ganga River Basin is home to
more than 500 million Indians.
As India's holiest river, the Ganga has
a cultural and spiritual significance
that far transcends the boundaries
of its basin.
Despite this iconic status and religious
heritage, the Ganga today is facing
formidable pollution pressures and
associated threats to its biodiversity
and environmental sustainability.

ASEAN
The project has two key components: Component 1 ($200 million) supports institutional development that
includes the operationalization of institutions at the central and state level; a communications and stakeholder
engagement program; water quality monitoring; and technical assistance for city service providers and
environmental regulators. Component 2 comprises a $800 million financing window for infrastructure investments
in four sectors: wastewater collection and treatment, control of industrial pollution, solid waste management,
and riverfront development.
The Institutions
The National Mission for Clean Ganga (NMCG), the operational wing of the NGRBA, has been set up to coordinate
the river’s clean-up program. State Program Management Groups (SPMGs) have been established in all five
mainstream states.
The Investments
The project aims to plug some of the major infrastructure gaps in cities along the Ganga’s mainstem. Several
key investments have been identified primarily to address the problem of untreated domestic sewage from
towns and cities along the river. Work has already begun on wastewater investments in the cities of Rishikesh,
Haridwar, Kanpur, Allahabad, Patna, and Kolkata, as well as in smaller towns that lie along the river’s critically
polluted stretch in Uttar Pradesh. This will result in the installation of over 300 MLD of new sewage treatment
capacity and over 2,000 km of new sewerage networks in these urban centres.
Building on lessons learnt from earlier efforts to clean the Ganga, these investments have been designed to
ensure their long-term sustainability. The new wastewater investments will be developed in the PPP mode but
innovative 10-year Design–Build–Operate (DBO) contracts will ensure that the private operator maintains the
infrastructure for 10 years. This period will be utilized for strengthening the technical and financial capacity
of the ULB service providers to manage the long-term operation of these assets. In a bid to ensure that the
new assets do not remain unutilized, all houses/properties will be connected to the sewerage networks; these
networks will, in turn, be connected to new or existing treatment systems.

WORLD BANK
Himachal Pradesh has Effectively Balanced
Economic Growth with Social Inclusion: World
Bank Report
Over the years Himachal Pradesh has made great strides in reducing extreme poverty and has emerged as one
of the states with the best human development outcomes in India, says a new World Bank report.
The report – Scaling the Heights: Social Inclusion and Sustainable Development in Himachal Pradesh – is a
macro-social account of the state’s achievements over the past several decades and an attempt to understand
the factors that allowed Himachal Pradesh to move toward social inclusion and sustainable development. Given
the state’s success in the past decades, the report is optimistic about its future. “The chances that the future
will be a reflection of the past are high,” it says.
“The World Bank Report highlights how Himachal Pradesh has effectively balanced economic growth with
good human development outcomes and has successfully reduced poverty among different groups in the state.
However, it has also captured issues of concern for the state such has the decline in the female child sex ratio,
under nutrition in children and an ageing population. Moving forward, the analysis contained here will help us
strike a balance between the aspirations of our citizens, who have high expectations from their government,
and the state’s new path of high growth, said Hon. Dr. (Col) Dhani Ram Shandil, Minister for Social Justice,
Empowerment & Sainik Welfare, Himachal Pradesh.
One of the main achievements of Himachal Pradesh was its success in raising people out of poverty. Between
1993–94 and 2011, there was a fourfold drop in poverty in the state. Rural poverty, where 90 percent of its
population lives, declined from 36.8 percent to 8.5 percent. The overall poverty decline benefitted all social
groups across rural and urban areas.
Educational attainment in Himachal Pradesh is among the best in the country; poverty headcount is nearly one-
third of the national average; life expectancy is 3.4 years longer than an average Indian expects to live; and,
per capita income is the second highest in India.
The labor market in Himachal Pradesh has been another arena for inclusive outcomes, when compared to
elsewhere in India. Men’s employment rates are similar to the rest of the country, but the bigger success story
is in women’s employment. In 2011–12, about 63 percent of rural women in the state reported themselves as
being employed.
The report identifies two factors as having driven the state’s inclusive labor market outcomes. First, almost half
of urban men and one-fifth of urban women of working age, in Himachal Pradesh had regular salaried jobs in
2011. Further, among those who were employed in 2011, almost one-third held public sector jobs. In contrast,
only 10 percent of all employed Indians work in the public sector..

OECD
Stressing the citizens’ Right to Services as the cornerstone of a society founded on the principle of democracy,
Dr. Jitendra Singh, Hon’ble Minister, Ministry of Personnel, Public Grievances and Pensions, Government of India,
remarked that as a society, we need to develop the conviction to fight bribery while speaking at a Seminar on
Fighting Bribery in Business Transactions organized by the Confederation of Indian Industry (CII) in partnership
with the Organisation for Economic Co-operation and Development (OECD) and the World Economic Forum in
New Delhi.
Likening bribery to an insidious social evil hampering economic growth and promoting a culture of dishonesty in
the society, he added that self-certification and the abolition of attestation is a significant step towards achieving
transparency in processes and curbing corruption. Discussing some of the most prominent measures taken by
the Indian government to fight bribery and corruption, he mentioned the roles played by the Prevention of
Corruption Act, 1988, the Central Vigilance Commission, the Lokpal and Lokayukta Act, 2013, the Central Bureau
of Investigation, etc. to be of particular significance.
Mr. Sanjay Kothari, Secretary to the Government of India, Ministry of Personnel, Public Grievances and Pensions,
remarked that bribery is a bane for good governance which is unethical as well an amoral. It is anti-business,
increasing the cost of doing business and fostering a business environment ridden with other social evils, he
added. In his opinion, a sincere commitment towards fighting corruption is imperative in order to uphold the
democratic values our constitution has been founded upon. He further shed some light of the approach of the
Indian government to fight bribery through the bifurcation of efforts into measures to promote transparency
and accountability. Amongst the most important steps to attain transparency, he discussed the importance
of simplification of procedures, elimination of redundancy in compliances, digitalization of transactions and
processes, reducing transaction costs, self-certification and abolition of the requirement of affidavits, leveraging
the application of technology, etc. to be paramount. According to him, accountability can be strengthened through
the rendering of the Right to Services as a statutory obligation and recognizing the citizens’ right to quality and
timely service delivery. He added that it is of utmost importance to make training for government employees
Seminar on Fighting Bribery in Business Transactions
Inculcate Incorruptibility as an Instinct in the Society: Dr. Jitendra Singh, Hon’ble Minister,
Ministry of Personnel, Public Grievances and Pensions, Government of India

mandatory. In his opinion, the Right to Information Act is a strong step towards fighting corruption. As part
of the measures that mark the way forward, he highlighted the importance of adoption of good governance
practices like e-governance, e-tendering, zero tolerance towards corrupt practices by the government as well
as the citizens, etc.
During a special address, Mr. Patrick Moulette, Head, Anti-Corruption Division, Directorate for Financial & Enterprise
Affairs, OECD, stated that the Anti-Bribery Convention of OECD is determined to fight bribery in international
as well as national business transactions. Strongly urging India to join the convention, he highlighted the social
as well economic ills perpetrated by corruption. Amongst these, he recounted increased cost of transactions,
promotion of dishonesty and uncertainty in business processes, compromised integrity and corporate reputation,
etc. to be most crucial.
Mr Deep Kapuria, Chairman, CII Northern Region Committee on Governance and Chairman, Hitech Group of
Companies, stated that corporates, being an integral part of society, reflect the value system and morality of
a society. In his opinion, we need to model the society as an eco-system which rejects corruption and bribery
and promotes clean business practices. He added that CII is dedicated to efficient business systems and will
take all measures required to clean the business practices in India of the ills of corruption.
Raising the Economic Participation of Women in India:
A New Growth Engine?
Economic participation of women in the labour force or as entrepreneurs is low compared to peers and has
declined over the past decades despite strong growth. The gap with men is over 50%--the largest among key
emerging markets. Participation declines with higher education achievements and family incomes. The reasons
are complex: socioeconomic and cultural factors are important - family status increases if women stay home,
house work has become more attractive than poorly paid market work as husband’s incomes have risen; and
safety concerns and poor infrastructure keep women from market work. Nevertheless, high unemployment
among educated women and revealed preference for work in surveys indicate that many women would work
if conditions improved. Availability of jobs is also an issue as the high growth has not created enough jobs for
men and especially for women.
Specific gender policies will be needed to enlarge economic opportunities for women and to overcome
socioeconomic and cultural barriers.
This paper by OECD analyses the determinants of low female economic participation and recommends•
policies for raising it.
The paper also estimates long-term growth effects of raising participation with selected policies. More and•
better jobs for women in India could raise growth by about 2 percentage points a year over time.
This Working Paper relates to the 2014 OECD Economic Survey of India.•
OECD

ILO
Private sector services and the care economy, key engines of job creation
The greatest single source of new jobs will be found in private sector services, such as business and administrative
services, and real estate, according to the latest ILO World Economic and Social Outlook.
These and related industries will employ more than a third of the global workforce over the next five years.
Public services in health care, education and administration will continue to be a major source of employment.
While increasing at a slower pace, they will still represent 15 per cent of total employment.
In contrast, the report said that industrial employment is expected to stabilize globally at slightly below 22 per
cent.
This is because the pace of job creation in the construction sector will decline in comparison to the period
2010-2013, although it is expected to remain above 2 per cent per year on average. Employment levels in
manufacturing, meanwhile, will remain largely unchanged over the next 5 years and will account for only 12
per cent of all jobs in 2019.
“Service sector employment will remain the most dynamic with respect to job creation in the next five years,”
said Raymond Torres, head of the ILO Research Department.
Rising share of high-skilled occupations and impact on wages and inequality
The shift of employment to services and the decline in manufacturing means a significant change in the skills
demanded by the labour market.
Individuals who once occupied these jobs will need to acquire new skills or instead face the prospect of competing
for jobs at the lower end of the skill spectrum.
There is also growing demand for jobs that require face-to-face interaction, such as in health and personal
services. This signals the emergence of a large care economy.
The global trends show significant regional variations, with medium-skilled jobs disappearing in advanced
economies at a faster pace than is the case in emerging and developing countries.
This polarization between higher and lower-skilled jobs is having a direct impact on labour incomes. The increase
in jobs at both the lower and upper ends of the skills ladder, at the expense of those in the middle, has and
will continue to contribute to widening income inequality.
Consumption and poverty
Employment shifts also affect consumption and poverty levels. The number of routine jobs, such as machine
operator or assembler has decreased in many countries, raising concerns over the role of manufacturing in
helping workers to escape poverty.
Without manufacturing jobs, opportunities for rural workers to improve their employment situation will be scarce.
Higher-skilled occupations are not accessible to those who lack formal education and have not opportunities for
training.
“These trends highlight the role of policies to help enterprises and workers seize the opportunities associated
with new technology, while at the same time breaking barriers for moving up the economic and social ladder,
especially for women,” Torres concluded.
Copyright © 2015 by Confederation of Indian Industry (CII), All rights reserved.
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Published by Confederation of Indian Industry (CII), The Mantosh Sondhi Centre; 23, Institutional Area, Lodi Road, New Delhi-110003 (INDIA)
Tel: +91-11-24629994-7, Fax: +91-11-24626149; Email: info@cii.in; Web: www.cii.in
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Multilateral newsletter february 2015

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Multilateral newsletter february 2015