CALL FOR PAPERS for May 2010 issue of IER journal published at the IIPM Think Tank, Hyderabad Topic: INCLUSIVE INDIA: DOES MARKET OFFER A SOLUTIONS FOR GROWTH?

1. The IIPM Think Tank, Hyderabad
INCLUSIVE INDIA: DOES MARKET OFFER A
SOLUTIONS FOR GROWTH?
There are facts like 80% of Indian population has
access to only 20% of healthcare, 17% of Indian
villages does not have even primary schooling
facilities, 200 million people in India lack access
to safe drinking water or that 33% Indians suffer
from lack of sanitation hold no novelty. Equally
well documented is the fact that India has
witnessed unprecedented economic growth since the
mid 90’s, but it is trailing on essential social
parameters of development. Accordingly inclusive
growth has become a leitmotif of the policy
discourse in recent times.
Addressing social issues will require mainstream
intervention models that are implemented on a
massive scale. The key to inclusive growth and
social cohesion is creating of jobs in millions.
Each year for the next three decades nearly sixteen
million will enter Indian labour force- the
potential demographic dividend. But without a
massive increase in education and training aimed at
the acquisition of skills relevant to future job
markets, it will be hard to make growth inclusive.
These potential job seekers will face a labour
market where 94% of employment is in the low
productivity informal sector. For growth to be
inclusive, all Indians must be connected to the
markets through suitable infrastructure.
Incidentally 13 million households in India face
financial exclusion. Finally, universal access to
quality basic services---education, health, water
and sanitation, financial infrastructure- is
essential to include all Indians in the growth
story. The question is: How to do it?
Philanthropies, development organizations and the
state have played important roles in formulating
Concept Note for May 31st 2010 Issue of IER Journal 1

2. The IIPM Think Tank, Hyderabad
and implementing solutions to some of these issues.
But for a variety of reasons, significant success
has eluded them so far. So influential thinkers are
proposing an alternative model.
For a continent size country like India, inclusive
growth makes for a sound business decision. This
should encourage private enterprises to meet market
demand by servicing under penetrated markets with
customized and cost effective products, leveraging
the potential of untapped resources while enhancing
social benefits. Truly sustainable inclusive growth
requires intervention models implemented on a large
scale using efficient scalable mechanisms to
enhance impact. While state and the not for profit
agencies continue to work, the role of the private
sector becomes critical given that it embodies
attributes such as sustainability, efficiency, and
scale that are vital to make a difference. While
the government is expected to play a key role in
broadening access to economic opportunities and
build resilience of the most vulnerable against
economic shocks, the market driven forces of growth
should be able to access the social sector through
marketization of these activities.
But as ever, the dissenting voices say it is akin
to abdication of the responsibility of the state
towards correcting the market failure. We need more
state here, not less.
We invite your valued arguments. Please feel free
to approach for any other additional information at
m.chaitanya@iipm.edu
Concept Note for May 31st 2010 Issue of IER Journal 2