Al. I.

Cuza University, Iasi Faculty of Philosophy and Social Political Science International Development Studies

THEORIES OF DEVELOPMENT
Case study: INDIA. DEVELOPMENT CHALLENGES

Master: Vldu aramet

IASI 2013

CONTENTS

1. Introduction 2. Development issues 3. Development policy in India 4. Millennium Development Goals: International Organizations and Institutions 5. Concluding remarks 6. Attachments 7. Bibliography

INTRODUCTION

Development means making a better life for everyone. In the present context of a highly uneven world, a better life for most people means, essentially, meeting basic needs: sufficient food to maintain good health; a safe, healthy place in which to live; affordable services available to everyone; and being treated with dignity and respect. 1 Development is known as a dynamic process of improvement, development is also known as implementing a change, or evolution, it is also known as growth and advancement of an urban area. Development is known as a phenomenon that suggests that the people are able to control the future of their city. It is known as the phenomenon in which people can improve the living conditions in the world.2 Development is important because it produces an economy, and more broadly a society and culture, that determines how people livein terms of income, services, life chances, education, and so on. As we have said, development is conventionally measured as economic growth, with level of development seen in terms of size of the economy. Development understood as a better life is a powerful emotive ideal because it appeals to the best in people. What might be called the discourse of development (the system of statements made about development) has the power to move people, to affect and change us forever.

1 2

Richard Peet and Elaine Hartwick,Theorries of development, The Guildford Press, New York, 2009, p. 1 http://wiki.answers.com/Q/Meaning_of_development

Relative to other comparable poor countries, Indias emphasis on tertiary education, combined with a variety of policy distortions, may have channeled the manufacturing sector into more skill-intensive industries. Furthermore, the governments desire to create capital goods production capability, especially through public-sector involvement, implied that India had a greater presence in industries that required scale (and capital) than other developing countries. Regulatory penalties and constraints on large private enterprise implied, however, that within most industries, the average scale of enterprise was relatively small. Finally, rigid labor laws as well as constraints on the scale of private enterprises may well have limited Indias presence in labor-intensive manufacture, the usual specialization in a populous developing country 3. Given these idiosyncratic policies, India had a far more diversified presence across manufacturing industries than the typical developing country. The postWorld War II literature on economic development has been dominated by four major and sometimes competing strands of thought: the linear-stages of-growth model theories and patterns of structural change, the international-dependence revolution, the neoclassical, free-market counterrevolution.4 In recent years, an eclectic approach has emerged that draws on all of these classic theories. Theorists of the 1950s and early 1960s viewed the process of development as a series of successive stages of economic growth through which all countries must pass. It was primarily an economic theory of development in which the right quantity and mixture of saving, investment, and foreign aid were all that was necessary to enable developing nations to proceed along an economic growth path that historically had been followed by the more developed countries. Development thus became synonymous with rapid, aggregate economic growth. 5 This linearstages approach was largely replaced in the 1970s by two competing economic (and indeed ideological) schools of thought.

3 4 5

http://www.imf.org/external/pubs/ft/wp/2006/wp0622.pdf http://www.aw-bc.com/info/todaro_smith/Chapter4.pdf Robert M. Solow, A contribution to the theory of economic growth, Quarterly Journal

of Economics 70 1956, p. 6594.

The first, which focused on theories and patterns of structural change, used modern economic theory and statistical analysis in an attempt to portray the internal process of structural change that a typical developing country must undergo if it is to succeed in generating and sustaining a process of rapid economic growth. 6 The second, the international dependence revolution, was more radical and political in orientation. It viewed underdevelopment in terms of international and domestic power relationships, institutional and structural economic rigidities, and the resulting proliferation of dual economies and dual societies both within and among the nations of the world. Dependence theories tended to emphasize external and internal institutional and political constraints on economic development.7 Emphasis was placed on the need for major new policies to eradicate poverty, to provide more diversified employment opportunities, and to reduce income inequalities. These and other egalitarian objectives were to be achieved within the context of a growing economy, but economic growth per se was not given the exalted status accorded to it by the linear stages and the structural-change models. Throughout much of the 1980s and early 1990s, a fourth approach prevailed. This neoclassical (sometimes called neoliberal) counterrevolution in economic thought emphasized the beneficial role of free markets, open economies, and the privatization of inefficient public enterprises. Failure to develop, according to this theory, is not due to exploitive external and internal forces as expounded by dependence theorists. Rather, it is primarily the result of too much government intervention and regulation of the economy. Todays eclectic approach draws on all of these perspectives, and we will highlight the strengths and weaknesses of each.8 When interest in the poor nations of the world really began to materialize following the Second World War, economists in the industrialized nations were caught off guard. They had no readily available conceptual apparatus with which to analyze the process of economic growth in largely agrarian societies characterized by the virtual absence of modern economic structures. But they did have the recent experience of the Marshall Plan, under which massive amounts of U.S. financial and technical assistance enabled the war-torn countries of Europe to rebuild and
6 7 8

http://www.econ.nyu.edu/user/debraj/Papers/DevReaderIntro.pdf http://www.econ.nyu.edu/user/debraj/Papers/DevReaderIntro.pdf http://www.economics4development.com/economic_development_theories.htm

modernize their economies in a matter of a few years. 9 Moreover, was it not true that all modern industrial nations were once undeveloped agrarian societies? Surely their historical experience in transforming their economies from poor agricultural subsistence societies to modern industrial giants had important lessons for the backward countries of Asia, Africa, and Latin America. The logic and simplicity of these two strands of thoughtthe utility of massive injections of capital and the historical pattern of the now developed countrieswas too irresistible to be refuted by scholars, politicians, and administrators in rich countries to whom people and ways of life in the developing world were often no more real than U.N. statistics or scattered chapters in anthropology books.10 Because of its emphasis on the central role of accelerated capital accumulation, this approach is often dubbed capital fundamentalism. Out of this somewhat sterile intellectual environment, fueled by the cold war politics of the 1950s and 1960s and the resulting competition for the allegiance of newly independent nations, came the stages-of-growth model of development. Its most influential and outspoken advocate was the American economic historian Walt W. Rostow. According to the Rostow doctrine, the transition from underdevelopment to development can be described in terms of a series of steps or stages through which all countries must proceed. Unfortunately, the mechanisms of development embodied in the theory of stages of growth did not always work. And the basic reason they didnt work was not because more saving and investment isnt a necessary condition for accelerated rates of economic growthit isbut rather because it is not a sufficient condition. 11 The Marshall Plan worked for Europe because the European countries receiving aid possessed the necessary structural, institutional, and attitudinal conditions (e.g., well-integrated commodity and money markets, highly developed transport facilities, a well-trained and educated workforce, the motivation to succeed, an efficient government bureaucracy) to convert new capital effectively into higher levels of output. The Rostow model implicitly assume the existence of these same attitudes and arrangements in underdeveloped nations. Yet in many cases they are lacking, as are complementary factors such as managerial competence, skilled labor, and the ability to plan and administer a wide assortment of development projects. But at an even more fundamental level, the stages theory failed to take into account the crucial fact that contemporary developing nations are part of a highly integrated and complex international
9

http://www.economist.com/node/1591985 http://www.cato.org/pubs/journal/cj29n2/cj29n2-2.pdf http://www.economist.com/node/1591985

10 11

system in which even the best and most intelligent development strategies can be nullified by external forces beyond the countries control.12 Whatever their ideological differences, the advocates of the neocolonial-dependence, false-paradigm, and dualism models reject the exclusive emphasis on traditional neoclassical economic theories designed to accelerate the growth of GNP as the principal index of development.

DEVELOPMENT ISSUES
Instead, economic reforms combined with growing decentralization of policymaking appear to have allowed states to use the capabilities built up over the period of heavy policy interventionin other words, freed them to grow at a pace consistent with their built-up skill base and institutional, as well as infrastructural, capability. On the one hand, this freedom has increased Indias overall growth rate. On the other, it has led to a considerable divergence between states in growth and incomes and in the pattern of specialization. The fast-growing peninsular states are starting to resemble industrial countries in their specialization, moving towards skill-intensive services and manufacturing. But the areas where India has built capabilities serve least well the populous, institution- and infrastructure-poor states of the hinterland. Whether these states can develop appropriate growth strategies and whether these strategies will be impeded or helped by the growth of the more advanced states is a central question for Indias economic future. Given the rapid pace of population growth within the country, coupled with the rapid pace of global knowledge generation, India is presented with a double challenge over the next two decades13: first, to accelerate the rate of knowledge generation and acquisition within the country by greater, more cost effective, more productive and more commercially applicable investments in R&D and technology transfer; second, to accelerate the rate of knowledge dissemination both through the formal education system and through non-formal channels. The remainder of this paper will focus on strategies to accelerate knowledge dissemination in India through formal and non-formal channels.
12 13

http://siteresources.worldbank.org/DEC/Resources/hoff-stiglitz-frontiersofdevec.pdf http://www.icpd.org/development_strategies/Knowledge%20for%20Development.htm

Problems of sustainable development are rooted in issues of resource use and their pattern of distribution and ownership. Thus a policy towards sustainable development cannot be framed in isolation to politics and state regulations. The world community is confronted by a chicken and egg controversy; economic problems aggravate resources crisis and environmental despoliation and this leads to constrained economic revival due to which nations find it more difficult to solve problems of unsustainable use of environment. In a world where progress depends on a complex set of national and international economic ties, any step towards sustainable patterns of growth involves as yet unresolved problems and challenges.14 Thus the primary requirement of sustainable economic prosperity in the world is to make the international economic system more equitable and just so that the developing countries can access it more vibrantly. It would also need a firm action towards debt servicing so that the poor countries may come out of the debt trap and participate in the world economic recovery programmes. Success of sustainable development is dependent upon the capacity development of the developing countries and environmental management 15. The main purpose of this programme would be to establish better management practices for both the human and the natural resources through innovations in technology, social policies, political and cultural paradigms.

DEVELOPEMENT POLICY IN INDIA

India's governments have established an extensive social welfare system. Programs for children include supplementary nutrition for expectant mothers and for children under seven years of age, immunization and health programs, vacation camps for low-income families, and training for adolescents. The program for old age, disability, and death benefits are covered by a provident fund with deposit linked insurance for industrial workers in 177 categories. The system is partially funded by insured persons and employers, with a small pension scheme subsidized by the government16. There is a social insurance system covering sickness and maternity as well as work injury. The law requires employers to pay a severance indemnity of 15 days pay for each year of employment.
14 15 16

http://www.preservearticles.com/201103314827/problems-of-sustainable-development-in-india.html Idem http://www.nationsencyclopedia.com/Asia-and-Oceania/India-SOCIAL-DEVELOPMENT.html#b

The 1970s saw the culmination of Indias quest for economic selfreliance. The long-term ambition of the Indian planners and politicians from the early 1950s onwards had been to develop an indigenous and independent industrial sector as the foundation for sustained economic growth.17 The economic strategy pursued by policymakers had emphasized strong state intervention, a policy of import-substitution and a largely restrictive policy towards foreign investments with the aid of promoting national control over the countrys economic assets. The Indian state had, on the one hand, put in place an impressive system of controls over private industrial investments, its core being the industrial licensing system. 18 This system implied that practically all industrial investments required government approval in the form of an investment license.On the other hand, the state had directly engaged itself in industrial development through public enterprises. Some of these were former private companies that were nationalized; others were enterprises established by the state in those economic sectors that were deemed strategic and in many instances reserved exclusively for state owned enterprises. The low economic growth had resulted in a steady decline since the 1950s in the global position of Indian economy as measured by conventional standards. In terms of total production, industrial production, exports and imports, Indias share of both the world economy and that of developing countries had declined, and the countrys international standing was significantly lower than could have been expected from the second most populous country on earth. 19 Only in one area had India progressed significantly, in higher education. Part of the explanation for the low growth could be found in the relatively conservative policy of successive governments towards taking foreign loans. Unlike most developing countries, including Brazil, India did not accumulate large international debts during the 1970s, primarily because it had relied on domestic financing and on whatever concessional aid official donors would provide for. 20 The positive side of this was, however, that after the economic crisis that started in 1979 and ended in the early 1980s, India was in an advantageous position to borrow funds from those investors abroad who had stopped giving loans to debt-ridden countries and were looking for safer destinations.
17

Jorgen, Dige, Pedersen, Globalization, Development and the State. The Performance of India and Brazil since Ibidem, p. 83. Idem. Idem.

1990, Palgrave Macmillan, 2008, p. 80.

18 19 20

Overall, the 1990s became a decade of economic reforms in which the Indian economy, despite the initial crisis, managed to grow at a pace similar to that achieved during the 1980s. These points to a relatively successful management of the challenges of economic globalization, but before this conclusion can be confirmed, we need to look closer at how the reactions in India have been to the emerging new paradigm for industrial production, to financial globalization and to the challenges arising from the negotiations over a new international framework for economic exchange. How should Indias development strategy since Independence in 1947 and until the early 1980s is characterized? A focus on self-sufficiency to avoid dependence on imports, and hence excessive external influence on domestic affairs. This view was understandable in a country emerging from colonialism, and which saw itself as an exemplar for other developing countries. It translated into an emphasis on rapid industrialization, especially the creation of domestic heavy industriesthat is, industries producing capital goods.21 In addition, the pattern of industrialization focused on reducing dependence on foreign exchange through import substitution. Trade restrictions were the inevitable side effect of these policies. To ensure that investible resources were channeled to the right industries, and given that India was capital poor, Indian planners devised a combination of heavy public sector involvement (with some industriesthe commanding heightsbeing reserved only for the public sector) and controlled private sector involvement. 22 Unlike many developing countries, independent India always allowed private sector activity. But to be consistent with the planning strategy, there had to be ways to control the private sector and this was done through investment licensing, import licensing, controls on the use of foreign exchange, controls on credit allocation, and controls on prices. Also, the threat always remained that the government would enter even those industries which were not explicitly reserved for the public sector (the threat was realized in 1969 when Indira Gandhi nationalized a number of private banks). In addition to maintaining coherence with the planning framework, a separate reason to control the private sector was to avoid undue concentration of economic power. Additional mechanisms to enforce this objective included the Monopoly and

21 22

https://www.rienner.com/uploads/47e2d55b15183.pdf http://www.icpd.org/education/LookatEducation.htm

Restrictive Trade Practices act (MRTP)which imposed severe constraints on expansion by large firms and groups, and the Foreign Exchange Regulation Act (FERA).23 In order to encourage labor-intensive manufacture in the private sector, significant benefits were given to small-scale firms (these included tax concessions and holidays, preferential access to credit, subsidized interest rates, and preferential treatment in procurement by the government). In addition, some goods were exclusively reserved for production by the small-scale sector. At the same time, however, significant protections for labor, especially in large firms, were enacted. For example, an amendment to the Industrial Disputes Act (1947) in 1976 made it compulsory for firms with 300 or more workers to seek the permission of the relevant government to dismiss workers.24 In 1982, the ceiling for seeking permission to dismiss workers was lowered to 100 workers. Also, for a variety of reasons , for a poor country India spent, and still spends, relatively far more resources on higher education than on primary education. For example, India spent 86 percent of per capita GDP on each student in tertiary education in 2000 while it spent 14 percent of per capita GDP per student in primary education. By contrast, China spent 10.7 percent and 12.1 percent, respectively, of per capita GDP per student in tertiary and primary education. Put another way, India spent substantially planning viewed.25 What did the policies do in terms of industry specialization? The first industry characteristic we examine is labor intensity, where the proxy for labor intensity is the share of wages in value added for the industry in a country averaged across a broad group of developing countriesexamples of industries that score highest on labor intensity are clothing, printing and publishing, and non-electrical machinery while those that score lowest are beverages, tobacco, and petroleum refineries.26 The real impact of the discriminatory policy regime against private sector scale (industrial licensing, reservation and other incentives for small-scale sectors, and the MRTP Act) may then have been felt within industry rather than between industries. With the caveats about cross-country comparisons of establishment and some attempt at correcting for

23

Kalpana Kochhar, Utsav Kumar, Raghuram Rajan, Arvind Subramanian, Ioannis Tokatlidis Indias Pattern of Idem. https://www.cia.gov/library/publications/the-world-factbook/geos/in.html http://www.icpd.org/education/LookatEducation.htm

Development: What Happened, What Follows?, 2006, p.9.

24 25 26

them, we find that the average size of firms in India is substantially below that in other countries this is true in the aggregate and in almost every industry. 27 Given that India has a more skill-based and scale-based (typically more capital-intensive) pattern of production, the presumption would be that it has specialized in more areas than the typical developing country, and hence it should exhibit a more diverse pattern of production. When we examine the concentration of Indian industry compared to the average country pattern, we find that India is significantly less concentrated (or more diversified), not just in terms of the distribution of value-added across industries, but also when concentration is measured in terms of employment.28 One seemingly anomalous finding captures the strange pattern of Indias development. This relates to the high relative labor productivity observed in the labor-intensive sectors in India, which raises the question of why this did not, for example, translate into exports of labor intensive goods. First, the high relative labor productivity could simply be the converse of the low labor productivity in the large-scale capital-intensive industries, the latter itself a result of the fact that these were dominated by state-owned firms where over-staffing was a common phenomenon and even an objective. Second, the stringent labor laws that make it hard to lay off labor and the consequent hesitancy to hire (and to drive down marginal labor productivity to the value maximizing level) could also explain why productivity is moderately higher in labor-intensive industries. Third, the discrimination against size that we have noted above may well have limited the Labor-intensive sectors incentive and ability to exploit economies of scale and generate large volumes of exports.29 Thus, the process of economic liberalization along with the pattern of government spending has been associated with a multiplication of the real incomes of richer groups. Financial liberalization has involved an explosion in financial sector activities and incomes in
27

http://www.google.ro/books?hl=ro&lr=&id=7guY1ut-

0lwC&oi=fnd&pg=PA5&dq=theory+of+development+in+india&ots=AKXi1qVLBt&sig=axzlD-Y40FvlCJg-kjEP_CKc8A&redir_esc=y#v=onepage&q=theory%20of%20development%20in%20india&f=false
28

http://www.unrisd.org/unrisd/website/document.nsf/ab82a6805797760f80256b4f005da1ab/7ee221555523155dc12 http://www.unrisd.org/unrisd/website/document.nsf/ab82a6805797760f80256b4f005da1ab/7ee221555523155dc12

56c77003cfaed/$file/ghoslong.pdf
29

56c77003cfaed/$file/ghoslong.pdf

this sector. Increasingly, professional incomes in finance approach the levels in developed countries, even while real wages in the rest of the economy stagnate and general employment becomes more precarious. Other white-collar services, and related incomes from activities such as construction, trade, advertising and so on which feed on the boom in consumption of higher income groups, have also increased dramatically. Trade liberalization has brought growing access to a much wider range of consumption goods and international brand names to the Indian upper and middle classes. The apparently insatiable hunger for imported goods is evident from the fact that non-oil imports have continued to increase hugely despite the ongoing recession in domestic manufacturing industry. Along with this, there has come a cultural revolution of the sort described above, which is also fed by the emergence of satellite television and huge increases in advertising budgets of companies operating in the Indian market. This has greatly increased the role of the demonstration effect in the consumption patterns of Indian upper and middle income groups. And this Cultural Revolution has been associated with a much more open display of conspicuous consumption than was traditionally prevalent in Indian society.

MILLENNIUM DEVELOPMENT GOALS: INTERNATIONAL ORGANIZATIONS AND INSTITUTIONS

With a population of just over 1.2 billion, India is the worlds largest democracy. In the past decade, the country has witnessed accelerated economic growth, emerged as a global player with the worlds fourth largest economy in purchasing power parity terms, and made progress towards achieving most of the Millennium Development Goals. However, poverty remains a major challenge though it is declining steadily but slowly. Based on the new official poverty lines, 42% of people in rural areas and 26% of people in urban areas lived below the poverty line in 2004-05. Official poverty estimates for 2009-10 are not yet available but preliminary estimates suggest that in 2009-10 the combined all India poverty rate was 32% compared to 37% in 2004-05. Resources generated from recent growth are now being invested into a set of very ambitious programs to deliver services to the poor. These include programs to provide elementary education, basic health care, health insurance, rural roads and rural connectivity, and other services to the poor. These programs are achieving partial

results on the ground. Between 2003 and 2009, the number of out-of-school children declined from 25 million to 8 million (less than 5% of the 6-14 age groups). Leprosy, polio, and TB are almost under control and the spread of AIDS has been kept in check. Large numbers of women have been mobilized into self-help groups to generate new livelihood opportunities. Massive new initiatives are being pioneered that are revolutionizing the way services are being delivered to low-income groups.30 India continues to grow at a rapid pace, although the government recently reduced its annual GDP growth projection from 9% to 8% for the current fiscal year ending March 2012. The slowdown is marked by a sharp drop in investment growth resulting from political uncertainties, a tightening of macroeconomic policies aimed at addressing a high fiscal deficit and high inflation (going well beyond food and fuel prices), and from renewed concerns about the European and US economies. Although the Government was quite successful in cushioning the impact of the global financial crisis on India, it is now clear that a number of MDG targets will only be met under the Twelfth Five Year Plan .31 Indias integration into the global economy has been accompanied by impressive economic growth that has brought significant economic and social benefits to the country. Nevertheless, disparities in income and human development are on the rise. A large section of the population - especially the poor, Scheduled Castes, Scheduled Tribes, Other Backward Classes, minorities and women - lack access to the resources and opportunities needed to reap the benefits of economic growth. 32 To assist the government in achieving rapid inclusive growth, the World Bank is supporting activities which address both cyclical and structural impediments to growth, as well as the constraints to making growth inclusive. The World Bank is increasing support to kick-start development in these low-income states by helping them to develop into attractive investment destinations, and raise the standards of living of their people by improving the delivery of public services.
Poverty reduction in these states remains critical to global success in meeting the Millennium Development Goals. Inclusive growth and development is a top priority for the government of India and
30

http://www.worldbank.org.in/WBSITE/EXTERNAL/COUNTRIES/SOUTHASIAEXT/INDIAEXTN/0,,contentM http://www.worldbank.org.in/WBSITE/EXTERNAL/COUNTRIES/SOUTHASIAEXT/INDIAEXTN/0,,contentM http://www.worldbank.org.in/WBSITE/EXTERNAL/COUNTRIES/SOUTHASIAEXT/INDIAEXTN/0,,contentM

DK:20195738~pagePK:141137~piPK:141127~theSitePK:295584,00.html
31

DK:20195738~pagePK:141137~piPK:141127~theSitePK:295584,00.html
32

DK:20195738~pagePK:141137~piPK:141127~theSitePK:295584,00.html

we are working in partnership to build on their own poverty reduction schemes . We have overhauled

the programme to reflect India's rising resources, and to ensure that it represents good value for money for the British taxpayer. As India's economy grows, poverty reduces and India becomes more prominent in world affairs, our development partnership with India will become about sharing expertise, supporting innovation and building skills. Over the next four years our top priorities are as follows.33 Top priorities

Focus on the poorest people in India's low income states: UK assistance is benefiting the poorest people in three poor states - Madhya Pradesh, Bihar and Orissa - reinforcing the deep, productive partnerships we have built over the last decade

Put women and girls at the heart of our work: the UK is investing in girls' education; access to finance, skills and low carbon energy; safe birth, children by choice and reducing violence against women; children's health and nutrition; and sanitation

Expand the private sector's potential to combat poverty: to support growth in the low income states the UK is developing programmes of pro-poor private investment to deliver jobs, products, infrastructure and basic services

Deepen our engagement with India on global issues where there may be benefits for poor people elsewhere: such as growth and trade, climate change, resource scarcity and health and disease control.34 The 2009 India Country Report brought out by the Ministry of Statistics & Programme

Implementation in the form of a mid-term statistical appraisal of the progress towards the MDGs in India, and the 2010 States of India Report on MDGs by the Ministry have similarly demonstrated that India is on track for some of the MDGs while the progress is not so encouraging for the other MDGs. In the Indian context, the rates of changes in statistical terms are quite reflective of the reality on ground.As a result, the new sets of statistics for the MDG indicators are showing up changes happening on the ground in respect of different aspects of human development. In view of this the Ministry has combined the latest data on the MDG indicator with the analysis of the programmes which the government has introduced to deal with

33 34

http://www.dfid.gov.uk/where-we-work/asia-south/india/ http://www.dfid.gov.uk/where-we-work/asia-south/india/

some of the social and economic problems standing in the way of achieving the MDG goals.35 This report has been compiled within a short time after the States of India Report on MDGs brought out as a special edition in October, 2011; but this report has succeeded to capture for a few important goals, the latest changes in data which are going to affect the level of achievement in the year 2015 at the national level. At the same time, the analysis presented here may help identifying the shortcomings of the government programmes for specific target issues. However these analyses, under the existing limitations of data, do not aim to provide crosscutting features as would be necessary for policy makers to get a better view of the outcomes. In order that relationship between the interventions and outcomes could be explained meaningfully, disaggregated statistics at sub-state levels are most essential.36

CONCLUDING REMARKS
Humanity has made phenomenal progress during the past two centuries, most especially during the past 50 years. The process of social development has thus far been subconscious, haphazard, inequitable, imbalanced and fought with turmoil and unanticipated side effects. In spite of vast experience, our knowledge of this process remains partial and fragmented among the different social sciences. Development of a comprehensive theory of social development should enable us to convert this process into a conscious movement which is more rapid, harmonious and equitable. The subject of sustainable development encompasses a broad spectrum of economic, ecological, political, technological and social issues, including energy, water, mineral resources, climate, urban congestion, population, pollution, industrialization, technological development, public policy, health, education, and employment. A compartmentalized piecemeal approach to the subject, such as one focusing on technological solutions or public policy issues, may shed light on specific aspects, but the complex interactions between various dimensions preclude such an exclusive concentration. Problems are compounded when any of these subsystems and elements is regarded as if it were separate and independent from the choices and actions of human beings.

35 36

http://www.in.undp.org/content/india/en/home/library/mdg/mdg_report_2011.html http://www.in.undp.org/content/india/en/home/library/mdg/mdg_report_2011.html

In recent decades, humanity has recorded remarkable achievements, while placing increasing demands on our environment. The challenge now facing humanity is to find ways to harness all available forms of capital in a manner that promotes human welfare, well-being and sustainable development for all. The problem today is not physical limitations, but rather limitations imposed by the quality of our choices and our actions. Rapid economic development and rising levels of consumption are taking a severe toll on the natural environment, which can only be partially mitigated by technological solutions. Sustainable development appears to be a contradiction in terms, a paradox, which can be fully resolved only by the evolution to a higher level of human consciousness. Today economic development is generating pressure for evolution to the mental stage in which human beings increasingly seek greater fulfillment in harmonious relationships, psychological gratification and cultural enrichment, rather than ever increasing material consumption. Thus, the progressive development of human capital made possible by the continuous evolution of human consciousness is the ultimate determinant of sustainability. When human beings and society more fully comprehend the process of their own development, they will realize that conscious efforts to promote individuation are important means for the sustainable development of human capital. Then fostering individuation will become a principal objective of both the individual and the collective.

ATTACHMENTS 1. IndiasprogressontheMDGsfor2015
Target No. 1. 2. 3. 4. 5. 6. 7. 8. 9. Target Description Halve, between 1990 and 2015, proportion of population below national poverty line Halve, between 1990 and 2015, proportion of people who suffer from hunger Ensure that by 2015 children everywhere, boys and girls alike, will be able to complete a full course of primary education Eliminate gender disparity in primary and secondary education, preferably by 2005, and in all levels of education no later than 2015 Reduce by two-thirds, between 1990 and 2015, the under-five mortality rate Reduce by three quarters, between 1990 and 2015, the maternal mortality ratio Have halted by 2015 and begun to reverse the spread of HIV/AIDS Have halted by 2015 and begun to reverse the incidence of malaria and other major diseases Integrate the principles of sustainable development into country policies and programmes and reverse the loss of environmental resources Halve, by 2015, the proportion of people without sustainable access to safe drinking water and basic sanitation By 2020, to have achieved, a significant improvement in the lives of at least 100 million slum dwellers In cooperation with the private sector, make available the benefits of new technologies, especially information and communication Progress Signs

10. 11. 12.

: Moderately/almost nearly on track considering all indicators : Slow/almost off-track considering all indicators : On-track or fast considering all indicators

Source: http://www.in.undp.org/content/india/en/home/mdgoverview/

2.

World: Extreme Poverty Level

India: GDP: $4 trillion (4th) GDP per capita(PPP): $3800 (122th) Extreme Poverty level: 23% Income Inequality Gini Index: 0.32 (moderate) Source: http://www.poverties.org/poverty-statistics.html

3. World: Literacy rates

2001 Average: World ave: 80% India: 66% Source: http://world.bymap.org/LiteracyRates.html

4. World: Human Development Index

India: HDI 0.611 (medium), 128th Heterogeneous, Kerala HDI~0.85 Source: http://hdr.undp.org/en/statistics/

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