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Amartya Sen on India and China

Merrell Tuck-Primdahl's picture

'Why is China Ahead of India? Implications for Europe and the US,' was the topic of a talk yesterday at the World Bank by Nobel winner Amartya Sen which was chaired by Kaushik Basu. In the span of just under two hours, Sen managed to pinpoint India's main Achilles Heel (primarily related to the low overall quality of education, poor health care and skewed energy and other subsidies), while weaving in references to Kido Takayoshi, Mao Zedong, David Hume, Mahatma Gandhi, Adam Smith, Jon Stuart Mill, Milton Friedman, Keynes, Marx and other thinkers and influencers. 

Amartya's talk coincided with the publication of a New York Times op ed titled 'Why India Trails China' in which he stressed that one cannot wait to fix health and education only after reaching some modicum of overall prosperity. Indeed, proper health and education, which foster human capabilities, are an essential precondition to sustainable growth and the ability to compete successfully in an integrated world. India still needs to take these East Asian lessons fully on board.  

Global investment patterns will see radical changes by 2030

Jamus Lim's picture

In an earlier post, we highlighted a feature of the global pattern of investment in recent times: that since 2000, developing countries have gradually increased their share of global investment, moving from around 20 percent through much of the second half of the last century, to around 46 percent by 2010. The rapidity of this rise notwithstanding, the natural question is whether this trend will continue into the future.

Answering this question---on changing patterns of global investment---is one of the main concerns of the most recent edition of the Global Development Horizons report, entitled Capital for the Future. In order to frame the question, the report considers how different countries will distinguish themselves in the global economy and, consequently, how by doing so they will provide investment opportunities that would attract financing from the pool of global saving.

It’s a Capital (plus Advisory) Problem not a Pipeline Problem

Aleem Walji's picture

Photo Credit: methodlogical.wordpress.comI recently returned from travel to India and East Africa where I attended a round table on social enterprise with the Government of India and met impact investors focused on Kenya, Tanzania, Rwanda, and Uganda. After listening carefully to entrepreneurs, investors, and government officials, I’m compelled to say something entirely inconsistent with conventional wisdom in the world of impact investing: there is not enough capital to support the pipeline of enterprises focused on solving our most vexing social problems. By social problems, I mean the provision of basic goods and services to the bottom of the economic pyramid where governments and markets often fail.

Take access to energy for example or access to sanitation in much of Africa and South Asia. More than 1.3 billion people on the globe still lack access to electricity and over 2.5 billion lack basic sanitation. Every 20 seconds a child dies because of poor sanitation.

These are public goods and unambiguously the responsibility of public actors. But in reality, governments often don’t have the resources, the will, or the capacity to provide these basic services to many of their citizens. And purely commercial enterprises lack incentives to provide services where financial upside is limited and the ability of poor people to pay is constrained. But this is precisely where inclusive (or socially driven) businesses and social entrepreneurs, for profit and not-for-profit, are innovating and developing new business models to solve our most pressing social challenges.

Learning from or repeating the past? Industrial zones in India (Part II)

On Tuesday, we looked at the disappointing performance of 2005’s SEZ Act when measured against the Government of India’s stated goals.

Will NIMZs be better for India's industry? ( Credit: Rajesh_India, Flickr Creative Commons)But the Indian government has an ambitious new plan to spur industrial growth, create 100 million jobs and increase manufacturing’s share in the GDP from 16 percent to 25 percent within the decade.  If ratified, the National Investment and Manufacturing Zones (NIMZs) will offer simplified regulation and better infrastructure to attract businesses. In this second installment of the series on India’s industrial zones, we assess its prospects.

Unconventional Development – Supporting Home Grown Genius

Aleem Walji's picture

Villgro, one of the largest incubators and funders of social enterprises in India, is hosting its annual Unconvention from December 1-3. Unlike other platforms, this event attracts people at the intersection of innovation and social enterprise with a clear focus on social impact and generating replicable models. I will be presenting at a panel discussion on December 3rd called Mainstreaming Your Social Business.

At the World Bank, we realize that public goods cannot be provided exclusively by governments acting alone. Private actors have a clear role to play and not just commercial enterprises. In India as elsewhere, we’re seeing the emergence of enterprises that combine the passion of NGO’s with the efficiency of business to address government and market failures. This is an extremely exciting possibility for the Bank and for our client Governments to consider. How do we encourage these actors to complement the State and how do we harness innovations around public goods to better serve the poor? The Development Marketplace is but one of many programs we support to surface, support, and diffuse innovation. The role of the Bank’s Innovation Practice is to pay attention to what’s going on around us and use the convening power and resources of the Bank to shine a light on innovations in development and scale-up what works.  

Follow me @AlWalji. I’ll be posting on #devmarket, #Innovation,  #alchemix throughout the event.

From more on the Unconvention read the interview of Sucharita Kamath at Vilgro as she describes how the Unconvention will convene different players in the social enterprise ecosystem in India to achieve broad-based social impact.

This article was originally published on NextBillion is a website and blog bringing together a community in the shared mission of development through enterprise.

Unconvention 2011 Hones in on Landing Top Socent Talent

Since its launch in 2011, Villgro has identified and assisted approximately 2,000 social innovators and positively impacted the lives of more than 360,000 people living in rural India. The organization's strength lies in finding innovators and entrepreneurs, providing skill, development and critical access to networks and other resources necessary to take their innovations to the marketplace. Critical to its continued success is the ability to connect with more homegrown geniuses just waiting to be discovered in every corner of India.

The India Paradox: Promoting Competitive Industries in a High-Growth Country

Ivan Rossignol's picture

India’s economic growth rate in the past decade has been nothing short of spectacular.  With its GDP growth around 7 to 9 percent per year, India is the second-fastest-growing large economy in the world.  However, the country’s manufacturing sector accounts for a dismal 17 percent of its employment opportunities, as compared to 60 percent in agriculture and 23 percent in services.[1]This summer, the World Bank’s Indian Visiting Scholars Program* invited two leading academics from Harvard University to visit India and to articulate potential pathways to sustain the country’s growth trajectory. These 2 scholars are Ricardo Hausmann, Professor of Economic Development at the John F. Kennedy School of Government and Director of Harvard’s Center of International Development and Dani Rodrik, Professor of International Political Economy at the Kennedy School. While there, they interacted with the private sector and key policymakers, including senior officials of the Department of Industrial Policy and Promotion, the Planning Commission, and the Ministry of Finance.