Syllabus: GS- III
Subject: Economy
Topic: Growth development and inclusion
Issue: GDP centric approach to growth
| Gross domestic product (GDP) is a monetary measure of the market value of all the final goods and services produced in a country within a specific time period. |
GDP Centric approach to growth
- Based on principle of increasing the size of the pie before its redistribution.
- Replaced “socialist” models concerned with conditions at the bottom.
- Based on agriculture to industry and then industry to service transition.
- Also means transition from village to urban area.
- A fossil fuel based resource intensive economy.
Concerns:
- Wellbeing of citizens is ignored.
- Damage to climate and environment
- Resource intensive GDP race creates a contention in global climate negotiations
- Persistence of issues like inequality, jobless growth.
Suggestions:
- Local co-operatively developed community driven solution
- Gandhian models for India’s economic and social progress
- Leverage the present realities, focusing on rural development (64% the citizens living in rural areas)
- break free from Western economic theories.
- Focus on small scale industries and agriculture can lead to inclusive and sustainable growth.
