Economic reforms, changes in the industrial policy and better utilization of available resources
are expected to reduce the problem of unemployment and poverty in our country. In the light
of this statement explain government policies and programmes implemented to alleviate poverty
and to generate employment in the economy ? in 100 to 150 words.
Answers
Answer:
Economic growth is the most powerful instrument for reducing poverty and improving
the quality of life in developing countries. Both cross-country research and country case
studies provide overwhelming evidence that rapid and sustained growth is critical to
making faster progress towards the Millennium Development Goals – and not just the
first goal of halving the global proportion of people living on less than $1 a day.
Growth can generate virtuous circles of prosperity and opportunity. Strong growth and
employment opportunities improve incentives for parents to invest in their children’s
education by sending them to school. This may lead to the emergence of a strong and
growing group of entrepreneurs, which should generate pressure for improved
governance. Strong economic growth therefore advances human development, which,
in turn, promotes economic growth.
But under different conditions, similar rates of growth can have very different effects on
poverty, the employment prospects of the poor and broader indicators of human
development. The extent to which growth reduces poverty depends on the degree to
which the poor participate in the growth process and share in its proceeds. Thus, both
the pace and pattern of growth matter for reducing poverty.
A successful strategy of poverty reduction must have at its core measures to promote
rapid and sustained economic growth. The challenge for policy is to combine growth-
promoting policies with policies that allow the poor to participate fully in the
opportunities unleashed and so contribute to that growth. This includes policies to make
labour markets work better, remove gender inequalities and increase financial inclusion.
Asian countries are increasingly tackling this agenda of ‘inclusive growth’. India’s most
recent development plan has two main objectives: raising economic growth and making
growth more inclusive, policy mirrored elsewhere in South Asia and Africa.
Future growth will need to be based on an increasingly globalised world that offers new
opportunities but also new challenges. New technologies offer not only ‘catch-up’
potential but also ‘leapfrogging’ possibilities. New science offers better prospects
across both productive and service sectors.
Future growth will also need to be environmentally sustainable. Improved management
of water and other natural resources is required, together with movement towards low
carbon technologies by both developed and developing countries. With the proper
institutions, growth and environmental sustainability may be seen as complements, not
substitutes.
DFID will work for inclusive growth through a number of programmes and continues to
spend heavily on health and education, which have a major impact on poor people’s
ability to take part in growth opportunities.
More and better research on the drivers of growth will be needed to improve policy. But
ultimately the biggest determinants of growth in a country will be its leadership, policies
and institutions.