Growth And Distributive Justice

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During the first three decades after Independence, the Indian economy stagnated around a trend rate of Growth of 3.5 per cent, popularly known as the Hindu rate of growth. The scenario changed during the 1980s. The acceleration of growth during the 1980s to 5.6 per cent put the economy on to a higher growth path. However, the growth process of the 1980s turned out increasingly unsustainable as manifested in the growing macroeconomic imbalances over the decade in the form of high Fiscal Deficit, high levels of Current Account deficit, and increasing levels of External Debt, besides a repressive and weakening financial system. Continuing macroeconomic imbalance and delay in taking corrective action accentuated the impact of global economic shock of 1990. A large and growing fiscal deficit with a sizeable component of monetised deficit, resulted in pressures on Money-supply-2/”>Money Supply and Inflation. These imbalances, in turn, spilled over to the external sector in the form of a large and unsustainable Current Account Deficit – giving rise to sizeable Public Debt, both domestic and external. All these culminated in an unprecedented external payments crisis in 1991. Economic growth fell to such a low level in 1991-92 that real per capita income declined for the first time since 1979-80. The improved growth performance of the 1980s was, thus, shortlived.

In response to the macroeconomic crisis, a programme of stabilisation and structural adjustment was initiated in July 1991, with wide ranging reform measures encompassing the areas of trade, exchange rate management, Industry, PUBLIC FINANCE and financial sector. Fiscal correction, exchange rate adjustment, monetary targets and inflation controls constituted the immediate measures for macroeconomic stability. These measures were supported by structural reforms in the form of industrial deregulation, liberalisation of Investment/”>Foreign Direct Investment, trade liberalisation, overhauling of public enterprises and Financial Sector Reforms. Apart from aiming at restoring the economic stability on both domestic and external fronts, the economic reform programme strived towards achieving a higher growth trajectory through increased levels of investment, and improvements in productivity, efficiency and competitiveness. Thus, the reform process has since encompassed all areas of the economy.

As a result of such wide-ranging reforms, India is no longer an economy of scarcity today. Shortages and rationing of essential goods and materials are now memories of the past. The country is now grappling with mounting surpluses of food stocks and Foreign Exchange reserves. As in August 2003, the quantum of food stock at 27.8 million tonnes remained higher than the buffer stock norm of 24.3 million tonnes.

All these have been reflected in a relatively high rate of economic growth over the decade of the 1990s. Indeed, during 1994-95 to 1996-97, the growth rate of GDP averaged as much as 7.5 per cent per annum. This was the only period in India’s economic history when the GDP growth exceeded 7.0 per cent consecutively over a period of three years. The sharp acceleration in the rate of growth of overall GDP was largely the result of the phenomenal growth of 10.8 per cent per annum in the Industrial Sector as an offshoot of the unshackling process. Such resounding achievements have no doubt worked towards setting an ambitious target of eight per cent growth during the 10th Plan period (2002- 07). For the first time in the country’s economic history, there is resurgence in confidence and increasing realisation that the Indian economy can as well grow at its potential.

The resurgence in growth and its increasing resilience was reflected in the social sector too. The POVERTY ratio declined dramatically to 26.1 per cent in 1999-00 from 36 per cent in 1993-94 and 44.5 in 1983. The Literacy rate improved sharply to 65.4 per cent in 2001 from 52.2 per cent in 1991 and 43.6 per cent in 1981. The male-female literacy gap also witnessed a decline to 21.7 per cent in 2001. There was continued improvement in the Health scenario. Life expectancy at birth improved. The crude birth rate, crude death rate, maternal mortality rate and infant mortality rate declined.

A more disquieting development in this regard is that the surge in fiscal slippage has been accompanied by a dwindling share of outlay on key social sectors like Education, health and social safety nets as a proportion of the total expenditure of governments – centre and states. While the total expenditure of combined central and state governments has increased by 2.8 per cent of GDP in 2002-03 over 1990-91, the same for the provision of social Services has gone up by a mere 0.8 per cent of GDP during the same period. As a result, the combined total expenditure on social services turned out to be 6.2 per cent of GDP in 2002-03, which is far lower than the pre-reform level of over 7 per cent, in general. Even though the Kothari Commission had long back underlined the need for enhancing the allocation on education to 6 per cent of GDP, actual expenditure in 2002-03 turned out to be 3.1 per cent of GDP, the same level as in 1990-91. This has been the picture even in progressive States like Andhra Pradesh (2.7 per cent of gross state domestic product (GSDP)) and Maharashtra (3.6 per cent of GSDP) in 2000-01. Similar has been the case on the health front with the share of allocated expenditure lying within a range of 1-1.4 per cent of GDP during 1990-91 through 2002-03. Once again, expenditure on health turned out to be a poor 0.7 per cent of GSDP for Andhra Pradesh and 0.5 per cent for Maharashtra in 2000-01.

Despite the significant gains made during the post reforms period, attaining the status of a developed nation remains a far distant dream. Indeed, soon after the spectacular performance during 1994-97, the economy has settled for a long drawn slowdown with intermittent signs of recovery. The loss of momentum in reforms following the initial flurry could have possibly triggered off the emergent deceleration. However, for a more fundamental reason, we may possibly have to look out elsewhere in view of similar encounter even in the 1980s preceded by a long entrenched phase of Hindu rate of growth. In this context, the socio-economic dynamics of the country could throw up some clue to the understanding of the halting recovery of the growth process. Towards this direction, let us take a fresh look at the social sector attainments once again.

While there has been considerable decline in the poverty ratio during the 1990s, India continues to have the dubious distinction of the largest number of people below the Poverty Line in the world. At a poverty ratio of 26.1 per cent, it translates into a staggering headcount of about 260.3 millions of people. Besides, wide inter-state disparities are visible in the poverty ratios across rural and urban areas as also in the rates of decline of poverty.

Performance in the field of education, arguably the cornerstone of social attainments, remains one of the most disappointing aspects of India’s development experience. Out of approximately 200 million children in the age group of 6-14 years, only 120 million go to school and net attendance in the primary level remains only 66 per cent of enrolment. Even though the male-female literacy gap witnessed a decline since the 1980s, at 21.7 per cent in 2001 it continues to be pretty large. Besides, the gross enrolment ratio in respect of elementary education deteriorated to 81.6 per cent during 2000-01 from 87.7 per cent in 1991-92.

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Economic growth is the increase in the amount of the goods and services produced by an economy over time. It is usually measured as the annual Percentage increase in real gross domestic product (GDP), which is the market value of all Final Goods and services produced within a country’s borders in a given year.

Income inequality is the unequal distribution of income within a Society. It is usually measured by the Gini coefficient, which ranges from 0 (perfect Equality) to 1 (perfect inequality).

Poverty is the state of being poor, which means having little or no money or possessions. It is usually measured by the poverty line, which is the income level below which a person or family is considered to be poor.

Wealth inequality is the unequal distribution of wealth within a society. It is usually measured by the Gini coefficient, which ranges from 0 (perfect equality) to 1 (perfect inequality).

Social mobility is the ability of individuals to move up or down the socioeconomic ladder. It is usually measured by the intergenerational earnings elasticity, which is the percentage change in a person’s earnings that is due to their parents’ earnings.

Globalization/”>Globalization-3/”>Globalization is the process of increasing interconnectedness between countries and people. It is usually measured by the amount of trade, investment, and Migration between countries.

Economic Development is the process of improving the standard of living of a country’s Population. It is usually measured by the growth rate of GDP per capita, which is the GDP divided by the population.

Sustainable Development is the development that meets the needs of the present without compromising the ability of future generations to meet their own needs. It is usually measured by the Human Development index (HDI), which is a composite index of life expectancy, education, and income.

Climate change is the long-term alteration of temperature and typical weather patterns in a place. Climate Change could refer to a particular location or the planet as a whole. Climate change may cause weather patterns to be less predictable. A region might experience lower or higher than Average temperatures. Climate change may cause more frequent and severe weather events, such as storms, floods and droughts.

Inequality of opportunity is the unequal opportunity to achieve success in life due to factors beyond one’s control, such as race, gender, or socioeconomic status. It is usually measured by the intergenerational mobility index, which is the percentage of children who move up or down the socioeconomic ladder compared to their parents.

Fairness is the quality of being fair or impartial. It is usually measured by the degree to which people believe that the distribution of Resources is fair.

Justice is the quality of being just or fair. It is usually measured by the degree to which people believe that the legal system is fair.

Equity is the state of being fair and impartial. It is usually measured by the degree to which people believe that the distribution of resources is equitable.

Reciprocity is the act of giving and receiving in return. It is usually measured by the degree to which people believe that they are treated fairly in their relationships with others.

Social justice is the belief that all people have the right to equal opportunities and resources, regardless of their race, gender, religion, or other personal characteristics. It is usually measured by the degree to which people believe that the society they live in is just.

Economic justice is the belief that all people have the right to a fair share of the economic resources of their society. It is usually measured by the degree to which people believe that the economic system they live in is fair.

Environmental justice is the belief that all people have the right to live in a healthy Environment, regardless of their race, gender, religion, or other personal characteristics. It is usually measured by the degree to which people believe that the environment they live in is healthy.

Global justice is the belief that all people have the right to live in a world that is just and equitable. It is usually measured by the degree to which people believe that the world they live in is just.

Distributive justice is the concept of fairness in the distribution of economic resources. It is usually measured by the degree to which people believe that the distribution of economic resources is fair.

Redistributive justice is the concept of fairness in the redistribution of economic resources. It is usually measured by the degree to which people believe that the government should redistribute economic resources to achieve a more just society.

Social welfare is the provision of assistance to people in need, such as the elderly, the unemployed, and the disabled. It is usually measured by the amount of government spending on social welfare programs.

Social security is a government program that provides financial assistance to the elderly, the unemployed, and the disabled. It is usually measured by the number of people who are receiving social security benefits.

Welfare state is a government that provides a high level of social welfare programs. It is usually measured by the amount

What is the difference between economic growth and distributive justice?

Economic growth is the increase in the amount of goods and services produced by an economy over time. Distributive justice is the fair distribution of economic resources among members of society.

What are some of the factors that contribute to economic growth?

Some of the factors that contribute to economic growth include:

• Investment in physical capital, such as machinery and equipment.
• Investment in Human Capital, such as education and training.
• Technological Progress.
• Entrepreneurship.
• A stable political and economic environment.

What are some of the challenges to economic growth?

Some of the challenges to economic growth include:

• Natural disasters.
• Political instability.
• Economic crises.
• Inequality.
• Environmental Degradation.

What is the relationship between economic growth and distributive justice?

Economic growth can lead to greater distributive justice if the benefits of growth are shared widely. However, economic growth can also lead to greater inequality if the benefits of growth are concentrated in the hands of a few.

What are some policies that can promote distributive justice?

Some policies that can promote distributive justice include:

• Taxation/”>Progressive taxation.
• Social safety nets.
• Public education and healthcare.
• Anti-trust laws.
• Labor market regulations.

What are some of the arguments for and against economic growth?

Some of the arguments for economic growth include:

• Economic growth can lead to higher standards of living.
• Economic growth can create jobs.
• Economic growth can lead to technological progress.
• Economic growth can lead to a more stable political environment.

Some of the arguments against economic growth include:

• Economic growth can lead to environmental degradation.
• Economic growth can lead to inequality.
• Economic growth can lead to social unrest.
• Economic growth can lead to a loss of traditional values.

What is the future of economic growth?

The future of economic growth is uncertain. Some economists believe that economic growth will continue at a slow pace in the future. Others believe that economic growth will slow down or even stop. Still others believe that economic growth will accelerate in the future.

What is the role of government in promoting economic growth?

The government can play a role in promoting economic growth by providing a stable political and economic environment, investing in Infrastructure-2/”>INFRASTRUCTURE, and providing education and training.

What is the role of the private sector in promoting economic growth?

The private sector can play a role in promoting economic growth by investing in new businesses, creating jobs, and developing new technologies.

What is the role of individuals in promoting economic growth?

Individuals can play a role in promoting economic growth by getting an education, working hard, and starting their own businesses.

1. Which of the following is not a factor of production?
   (A) Land
   (B) Labor
   (C) Capital
   (D) Entrepreneurship

2. Which of the following is a characteristic of a market economy?
   (A) Private ownership of capital
   (B) Central planning
   (C) Government regulation of prices
   (D) No role for government

3. Which of the following is a characteristic of a command economy?
   (A) Private ownership of capital
   (B) Central planning
   (C) Government regulation of prices
   (D) No role for government

4. Which of the following is a characteristic of a Mixed Economy?
   (A) Private ownership of capital
   (B) Central planning
   (C) Government regulation of prices
   (D) All of the above

5. Which of the following is a type of economic system in which the means of production are owned and controlled by the state?
   (A) Market economy
   (B) Command economy
   (C) Mixed economy
   (D) Traditional economy

6. Which of the following is a type of economic system in which the means of production are owned and controlled by individuals or businesses?
   (A) Market economy
   (B) Command economy
   (C) Mixed economy
   (D) Traditional economy

7. Which of the following is a type of economic system in which the means of production are owned and controlled by the community as a whole?
   (A) Market economy
   (B) Command economy
   (C) Mixed economy
   (D) Traditional economy

8. Which of the following is a type of economic system in which the means of production are owned and controlled by tradition?
   (A) Market economy
   (B) Command economy
   (C) Mixed economy
   (D) Traditional economy

9. Which of the following is a characteristic of a traditional economy?
   (A) There is a low level of technology.
   (B) There is a high level of specialization.
   (C) There is a high level of economic growth.
   (D) There is a high level of economic development.

10. Which of the following is a characteristic of a market economy?
    (A) There is a high level of government regulation.
    (B) There is a high level of economic inequality.
    (C) There is a high level of economic growth.
    (D) There is a high level of economic development.

11. Which of the following is a characteristic of a command economy?
    (A) There is a high level of government regulation.
    (B) There is a high level of economic inequality.
    (C) There is a high level of economic growth.
    (D) There is a high level of economic development.

12. Which of the following is a characteristic of a mixed economy?
    (A) There is a high level of government regulation.
    (B) There is a high level of economic inequality.
    (C) There is a high level of economic growth.
    (D) There is a high level of economic development.

13. Which of the following is a type of economic growth?
    (A) Extensive growth
    (B) Intensive growth
    (C) Sustainable growth
    (D) All of the above

14. Which of the following is a type of economic development?
    (A) Economic growth
    (B) Economic equality
    (C) Economic security
    (D) All of the above

15. Which of the following is a characteristic of economic growth?
    (A) An increase in the output of goods and services.
    (B) An increase in the standard of living.
    (C) An increase in the level of economic inequality.
    (D) All of the above

16. Which of the following is a characteristic of economic development?
    (A) An increase in the level of economic equality.
    (B) An increase in the level of economic security.
    (C) An increase in the level of human development.
    (D) All of the above

17. Which of the following is a factor that contributes to economic growth?
    (A) An increase in the amount of capital.
    (B) An increase in the amount of labor.
    (C) An increase in the level of technology.
    (D) All of the above

18. Which of the following is a factor that contributes to economic development?
    (A) An increase in the level of education.
    (B) An increase in the level of health care.
    (C) An increase in the level of infrastructure.
    (D) All of the above

19. Which of the following is a goal of economic growth?
    (A) To increase the standard of living.
    (B) To