Making growth inclusive / Infrastructure shortages

Making growth inclusive
A major concern of policy –makers is that despite the significant acceleration in growth in the period since the Earth Summit, the benefits of economic growth have eluded large disadvantaged sections of the population. Much of the growth has occurred in the industrial and service sector, with the agricultural sector being stagnant. Some of the poorer states, with large sections of their population in the agricultural sector have shown low growth rates resulting in increasing regional disparities. Inter-personal, inter-regional as well as inter-community inequalities have been on the rise. The states with developed markets and good physical and social infrastructure have grown at a much faster rate than the others. In twelfth Five-Year Plan (2012-2017), the Planning Commission’s focus has been on instilling ‘inclusive growth.’
Infrastructure shortages
India has infrastructure shortages, a consequence of its economic growth outstripping infrastructure availability. This has impeded investment flow and constrained economic growth in the country. For ensuring sustainability of the growth process, it is imperative that infrastructure constraints are removed particularly in energy, roads, ports, airports and urban rural infrastructure. While in some areas, such as roads and airports, it has been possible to have the private sector participate in infrastructure investment; in many other areas the progress has been slow. Many new projects, and improved cargo handing at ports have been initiated, but there continues to be a massive gap. Public private partnerships (PPP) to execute infrastructure projects will be essential in the years to come. Projected investment required for infrastructure development during the twelfth Plan period (2012-2017) is INR 40.99 trillion; half of this is expected to come from the private sector.
Environmental quality concerns

Production and consumption patterns

Production and consumption patterns
In global debates pertaining to climate change, unsustainable production and consumption patterns in the developed world have been highlighted. Even in the domestic context, environmental degradation is linked closely to unsustainable production and consumption patterns. According to a study carries out by TERI on Environmental Kuznets Curve, India’s total SO2 and NOx emission had increased from almost 7.12 million metric tons to 9.82 million metric tons between 1995 and 2005 with a CAGR of 3.63% .

Greendex, an indicator developed by the National Geographic Society and Globescan ranks India and Brazil as first in terms of environmentally sustainable consumption and lifestyle. With rising middle class developing countries are taking initiatives to promote sustainable consumption. However, the continuation of unsustainable patterns of consumption and lifestyles still need to be addressed adequately by developed countries.

Unsustainable patterns of consumption and lifestyles still need to be addressed adequately by
developed countries.

Several traditional practices that are sustainable and environment friendly continue to be a regular part of the lives of people in developing countries. With increasing purchasing power, consumption linked to market driven consumerism is stressing the resource base of developing countries further. Moreover, subsidies often lead to wasteful and unsustainable consumption by distorting the value of a resource.

Urbanization and migration

Urbanization and migration
India has witnessed rapid urbanization in the last few years. The urban population has been growing and is projected and is projected to grow at a much faster rate than the rural population. The increase in urban population has been attributed both to natural growth and push migration form villages. In some states, urban poverty seems to be greater than those in rural areas. Among urban areas, poverty rates in small towns are markedly higher than those in large metropolitan areas. Since a disproportionate share of India’s urban population resides in small and medium size cities, the urban poor are also found to be greater in these smaller places.

The growth generates pressure on public infrastructure, including basic health and sanitation services creating a disorganized urban landscape, and constitutes a social crisis that can result in major health risks and pose threats to sustainable development. This growth in urban population leads to the creation of urban slums. Which are at high risk from outbreaks of contagious diseases, such as tuberculosis, malaria, dengue, cholera, typhoid and plague resulting from poor environmental conditions?

Urban sprawl also creates a mobility challenge – access to transportation that is required to meet economic and social needs. The growing transport demand in India accompanied by massive urbanization, increasing vehicular density and growing consumption of energy (mostly fossil fuels) Government and undertaken various initiatives to promote sustainability in the transport sector. These initiatives include the National Urban Transport Policy, National Highway Development Project, and implementation of strict emission norms and development of vehicle efficiency standards. Much more needs be done to address sustainability concerns at the urban level through working with local bodies and other stakeholders.

Health Challenges / Regional disparities / Sanitation and drinking water-related challenges / Education access and quality

Health Challenges
Though the government spending on health has increased over the last years and the been as important element in reducing poverty, much more attention is required of the poverty-health linkage. Child malnutrition and under-nutrition in particular, remains high, and improvements have been much lower than what would be expected given India’s pace of GDP growth. Besides inadequate access to public sector health facilities, there are also concerns with the quality of the services provided. This has resulted in an increase in the demand for private health care services, which create their own concerns given the wide differences in quality of private health care, high prices, which makes it unaffordable for many and high medical costs, which push many people into poverty. What is needed to meet this challenge is the complementarity between the high government spending in the health sector and reforms to improve accountability in service delivery, both by the private and public sector. Better regulation and oversight of private providers will play an important role. The design of the health insurance scheme, which the government is planning to toll out in the near future to improve access to health care, will be very critical to improved outcomes.
Regional disparities
Low- income states of Bihar, Odisha, and Madhya Pradesh are behind other states on most social indicators. The Multidimensional Poverty index (MP) study report indicates that eight Indian states, namely Bihar, Jharkhand, Madhya Pradesh, Chhattisgarh, Uttar Pradesh, Rajasthan, Odisha, and West Bengal are home to 421 million multidimensional poor persons. Similarly disparities are evident in India at the inter- state and rural –urban level in the provision of basic services, which include water supply sanitation and clean energy.
Sanitation and drinking water-related challenges 

Green Economy / Impact of the outcome of Rio+20 the development agenda of India

Green Economy

There is no one agreed definition of Green Economy. India has viewed the concept to Green Economy in the context of sustainable development and poverty eradication; which was one of the themes of Rio+20 Green Economy is one of the means to achieve sustainable development. The concept should not lead to any form of green protectionism, imposition of conditionality or any intrusion in the domestic policy space. The document affirms that there are different approached, visions, models and tools available to each country, in accordance with its national circumstances and priorities to achieve sustainable development in its three dimensions which is the overarching goal. Green economy in the context of sustainable development and poverty eradication is one of the important tools available for achieving sustainable development and that it could provide options for policy making but should not be a right set of rules. The outcome of summit firmly rejects the unilateral measures and trade barriers as well as unwarranted conditionalities on ODA and finance under the guise of Green Economy.

Impact of the outcome of Rio+20 the development agenda of India

One of the key priorities of India in the negotiations was to protect the domestic policy space for our development. The outcome document has done so by reaffirming the Rio principles including CBDR and equity and avoiding a prescriptive outcome with unilateral norms and targets. Thus, we could follow our own policies on sustainable development and poverty eradication. We would keenly follow up on the four process/ mechanisms proposed in the outcome document on finalizing strategy , technology transfer, SDGs and high level political forum with a view to protecting our interests.