Inclusive Growth - where do we stand

Recently, suicide of Chinese labor hit headlines across the world. It was a painful realization for the world that glory is not in growing your GDP by 10% or becoming the second largest economy in the world. It’s about ensuring that every human being in your country can live like a human being having access to the basic needs such as food, clothing and shelter.

What I am writing about is common sense but again common sense is not that common.
Today's buzz word is inclusive growth. Every political leader or economic strategist uses this term in their speeches and analysis.

What is Inclusive growth?

Inclusive growth as a notion means – creating economic growth in a region or a country where the entire population contributes and benefits from this economic development.
Sounds quite obvious but the harsh reality is that 300 M people in India are still living below poverty line, 116,858 workers in China annually die in work related accidents due to negligence,  infant mortality rate in Brazil is 23 out of 1000 children born, only 7% of 142M Russians have access to business loans.

I am focusing on emerging economies or specifically the BRIC nations. These countries have astonishingly high GINI indexes. While 5 Indians are on Forbes 100 richest list, there are also 300 m poorest people in the world. They are debt ridden, unhealthy and illiterate. We talk about the brilliant economic performance of India in the last 2 decades and conveniently ignore this harsh reality. Noone is alien to China’s labor situation where 30M migrant workers are virtually living in hell on the east coast. Lately, Chinese labor suicides in the Pearl River Delta hit the headlines.

Why is inclusive growth so important? Because it will define how sustainable is this celebrated economic growth is in emerging economies. A society where 5% people are buying Louis Vuitton bags while 20% of population is struggling to acquire a meal a day is sure shot formula for a social disharmonious society. For ex; my chauffer in India makes US $100 a month. He drives us to a fancy restaurant where we spend
a similar amount in one evening. Somewhere in his mind, this thought definitely arises that what he works so hard to earn in a month, is spent by us in a few hours and life is unfair. The warlords in
Brazil, the Maoists in India, Russian rebels are the fruit of this economic disparity. For sustainable economic growth, it’s critical to form a society where everyone meets their basic needs and the struggle for survival is history.
The important question is - how is that possible? I am no expert but the foremost need is to provide quality education to the masses so that everyone can compete on the same leveled field. Again this is a
no brainer but sometimes reinforcing a fact makes it more credible.

Another way is urbanization. This is a controversial and a debatable proposition. After all, the miserable living conditions of migrant workers in urban China strongly advocate against it. But still China intends to urbanize 400M people in next 15 yrs. This will create 3.5 M jobs bringing some prosperity to the worker class of the country.

Providing access to banking to the poor. Almost half the world is unbanked. Yes, that’s staggering 3.5 billion people. Many of them can drastically improve their living standards if they have access to basic loans and saving accounts. Governments have realized this but a more expansive thrust should be applied on providing banking to the poor.

We read about the phenomenal growth potential of the BRIC economies in the last 3 decades. My colleagues and friends from West are inquisitive and excited by this next leap forward for 3 billion people. However, to sustain this growth and bring massive upliftment for the society, focus needs to on providing livelihood opportunities for the common masses. This proverb though an old one is very relevant to end this post.  “Give someone a fish and you feed him for a day; Teach someone to fish and you feed him for a lifetime” -  

2 mates and a bottle

"Let's get drunk!! " Were the first words out of Drew as he met Stuart.
"These are the greatest three words I have heard the entire day. Take out the goods" exclaimed Stu.
Drew eyes brightened up.

The duo crossed the creaky pathway to sneak into the barn. Drew cautiously uncovered the rusty looking bottle of country vodka out of hidden spot.
Stu though used to drinking more finer liquor, didn't complain. After a mundane and superficial evening with his father's aristocratic and self righteous friends, any kind of alcohol would content him. The two friends formed the most unlikely pair. Stu, the only son of the local parish with his polished demeanor, was so different from Drew, the son of the village locksmith, and his countryside simplicity. While Stu could read and write 5 languages, Drew could faintly read basic Russian. But sometimes intense variance forms the foundation for an everlasting relationship. The duo's alienity to each others' world formed the crux to their friendship. Maybe it was the dynamicism of the era which defined this unique friendship. 1916 Russia was a difficult place to comprehend. A bitter and violent conflict between two different worlds was on full throttle. The Tsar’s influence was weakening alarmingly and Marxism was gaining flair. However, the 2 were oblivious to the external world. All they saw today was the bottle of vodka and an evening where they could shed all their inhibitions and be themselves.

" What’s taking you so long to open the bottle. Hurry up. Will you?" blasted Stu."Patience -my good man!! Trust me, the wait will be worth it" and Drew unscrewed the cap masterfully.
The glasses were out and the liquor was poured. Cheers were shouted out loud. "Long live Gustav Mahler". “To new Russia!” and the drinks were gulped. The glasses looked pleading to be reconnected with the divine fluid. And their wishes were answered.
Drew adroitly refilled the glasses and the alcohol met its assigned destiny. When the two drank, they didn't talk. Enjoying the feeling of intoxication, both were lost in their own ocean of thoughts. They thought about the meaning of life, religion and music. But unlike their thoughts, the bottle had a finite boundary, and after 2 more drinks, it reached its limit. Now, with the bottle depleted, it was time for conversation. This was their ritual- the first half was dominated by alcohol; the second half by their conversations.
Tonight, Stu was unusually philosophical. “Drew, life can be delusive. Just when you start believing that everything is in control, life plays a ruthless trick on you. At times, I lose faith in the spirit of life”
“Well said Stu. Life is unreliable. Tell you what, this empty bottle, which is smirking at us, is more trustworthy than life. After every drink we make, it audibly shouts out loud that I am abandoning you. And when we see the empty bottle without the Vodka, it is undoubtedly hurtful but we knew its coming. This reduces the pain”.
Stu nodded in approval. Drew carried on. “One more thing Stu. You were lucky to have got out of that Stephanie Business. That girl was no good for you.
Stu was unmoved and silent. Drew smirked “It’s good that you are beyond her now. She would have made life a living hell for you. It is better that she gets married to some other chap. Maybe to that fraud banker’s son, Edward and make his life miserable.”
All of a sudden, Stu felt this pang of despair. He only saw thick dark clouds of hopelessness hovering over him. The thought of losing her forever had never occurred to him and now this reality of the situation struck him.
“Now Stu, you need to be strong. Maybe, Stephanie will want to come back to you but Stu, you need to be strong. You will not take her back. I will not let you take her back”. Stu smiled. The possibility of she coming back and they being together made him feel better.
“Watch your smile Stu. I know what you are thinking. You are not going back to her and I will ensure that”. Stu nodded but he knew that all is not over. He felt happier. Maybe if he pleads hard enough, she might take him back.
Drew was too drunk to understand his compatriot’s ambivalence. “You are a true man Stu. She is not good enough for you. She kept you in a leash and she will make you give up everything you love. And what about her snobbish father who treats you like dirt. You need to forget her and it will be better for her to forget you as well”. Drew’s words pierced Stu’s heart like needles and the pain was unbearable for him. All the Vodka inside him was not helping either.
“I would rather not talk about it” Stu offered.
“Yes. We will not talk about it again. We ought to get drunk. We should go to the town and get more Vodka. Come on Stu. Get us two of your father’s finest horses and we will ride to the town like the Cossack’s cavalry”.
The idea of riding horses to the town and more Vodka brightened Stu up. He immediately unhooked two horses from the stables and gave the leash of one to Drew.
It was a full moon night and the beautiful Narva river sparkled like a new bride. The two friends rode the horses in such grandeur as if they owed the town. Stu felt much lighter. The pain seemed to be alleviating and memory of Stephanie was fading away. A lightning struck; Stu was jolted from his thoughts and once he regained them, he couldn’t recall her face. It felt much better.
The rain started pouring and teenage girls were scampering for shelter. Stu bowed to one of the pretty ones and rode away while Drew gave a knowing smile.