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Significance of Inclusive growth and various government initiatives

May 30, 2023

Context:

  1. The theme at the Global Solutions Summit held in Berlin, “was a new paradigm for the economy”.

What is inclusive growth?

  1. Inclusive growth is economic growth that is distributed fairly across society and creates opportunities for all.
  2. According to a recent Oxfam report, the top 10% of the Indian population holds 77% of the total national wealth. 73% of the wealth generated in 2017 went to the richest 1%.
  3. This editorial argues that 50 percent of Indians are now left behind the fruits of development. 

Global solution summit:

  1. The Global Solutions Summit – the World Policy Forum – is an international conference aimed at addressing key policy challenges facing the G20 and G7.
  2. Global solution summit focuses on Leveraging the Diaspora, Youth, and the African Continental Free Trade Area to Harness Science, Technology and Innovation for the SDGs 2030.

Changes noticed:

  1. The rising inequality across the world has pushed the world to a corner of the revolution and has developed a stressed situation.
  2. The extreme left wants revolutionary change in order to bring parity in society whereas the rightist wants to preserve the stability of the country.
  3. Most of the economies have been reformed in recent times in order to meet the needs of the local people.
  4. This is done by devolving various socialist principles in order to fit into the needs of the people.
  5. In the US  the government increased the taxes and brought various social schemes to raise resources and finance the needs of the people.

New initiatives:

  1. Efforts were being made to encourage investors to invest in the market so as to generate employment for the people.
  2. Private sectors were encouraged to undertake operations since they showcase greater efficiency in comparison to public enterprises.
  3. This type of initiative has led to a rise in global citizenship which can be set into different environments.
  4. Taxes were reduced to the bottom in order to further encourage investors to invest in the economy.

Outcome:

  1. GDP has become the sole factor for the calculation of a country’s growth across the globe whether or not it meets the needs of different sections of society.
  2. Such types of growth factors have led to the development of the few at the cost of many across the world.