Planning For Inclusive Growth : The Indian Experience

1. Planning For Inclusive Growth:The Indian Experience By Dr. Nagesh Singh Advisor Planning Commission, Govt. of India

2. Structure of the Presentation • Social compact for inclusive growth. • Planning process & inclusive growth agenda. • Status of MDGs in India. • Major Plan schemes. • Governance reforms & MDGs.

3. Social Compact: 1 • The constitution of India provides a framework for inclusive growth. • Fundamental rights guarantee citizens a number of inalienable rights. • Directive principles of state policy though not justiciable, act as a beacon for governance. • Positive discrimination built in the constitutional provisions for weaker sections. • The Supreme Court of the country has consistently enhanced peoples rights through its judgments (e.g Food Security, ICDS).

4. Social Compact: 2 • Directive principles of the state policy play a major role in legislative & administrative agenda • Many of the MDGs form a part of the directive principles: • Social order for promotion of the welfare of the people • Right to work • Free & compulsory education for children • Level of nutrition & public health • Protection of environment

5. Social Compact: 3 • A fundamental shift in the recent years is the emergence of rights based approach in contrast to welfare. • A number of entitlements enshrined in the directive principles have been made legal rights: • Right to Education: A fundamental right • National Rural Employment Guarantee Act • Forest Dwellers Rights Act • Panchayati Raj institutions • Right to information

6. Planning Process and Inclusive Growth Agenda: 1 • Removal of poverty, building human capital and expanding opportunities for poor has been a consistent theme across the plans • Post reform period (1991), Development with a human face • Massive expansion of programmes for poorer sections/regions: • Employment assurance scheme • Housing • Basis amenities • Programmes for backward regions

7. Planning Process and Inclusive Growth Agenda: 2 • Eighth Five Year Plan (1992-97) and Ninth Five Year Plan (1997-2002) followed a three pronged strategy for inclusive growth: • Investment in sectors that generated employment opportunities for poorer people , • investment in health & education to build human capital, • provision of basic infrastructure facilities such as drinking water, sanitation, housing, roads etc. • In addition the plans continued to focus on poorer districts and backward regions. • Major government schemes provided higher allocations to poorer districts. • The Finance Commission devolutions became more progressive.

8. Planning Process and Inclusive Growth Agenda: 3 • The Tenth Five Year Plan (2002-07), internalized MDGs and for the first time set monitorable targets • Nation and state wide monitorable targets: • 5 % reduction in poverty by 2007, 15 % by 2012 • All children in school by 2003, all children to complete 5 years of schooling by 2007 • Reduction of IMR to 45 per thousand live births by 2007 and to 28 by 2012 • Reduction in MMR to 2 per thousand live births by 2007 and to 1 by 2012 • All villages to have sustained access to potable drinking water

9. Planning Process and Inclusive Growth Agenda: 4 • The Eleventh Five Year Plan (2007-12) was dedicated to inclusive growth. • The theme of the eleventh plan was faster and inclusive growth. • The eleventh plan also set ambitious monitorable targets which relate to MDGs. • The approach paper to the Twelfth Five Year Plan talks of “faster, sustainable and more inclusive growth”. • The plan allocation in the eleventh plan for social sectors was considerably stepped-up.

10. Sectoral Allocation in Tenth and Eleventh Plans

11. Status of MDGs in India: 1

12. Status of MDGs in India: 2

13. Status of MDGs In India: 3

14. Major Plan Schemes: ICDS 1 • India faces a serious nutritional challenge. • Progress on nutrition related targets slow and off the track. • Meeting nutritional challenge on the development agenda. • Prime Minister’s national council on nutrition set up in 2011. • Major revamp of ICDS programme.

15. Major Plan Schemes: ICDS 2 COMPONENTS OF ICDS Supplementary Nutrition Immuni-zation Health Check-up Health and Nutrition Education Referral Services Pre- School Education

16. Major Plan Schemes: ICDS 3 • Many structural issues in ICDS. • Coverage of children limited. • Outreach in isolated and difficult terrain which require ICDS services is an issue. • Focus on supplementary nutrition to the neglect of other components. • 0-3 age group - the critical years for nutritional challenge and pregnant and lactating mothers have received less attention. • Governance issues in ICDS.

17. Major Plan Schemes: ICDS 4 • Major restructuring of the ICDS on the anvil pursuant to recommendations of the Prime Ministers council on nutrition. • Special focus on 200 high focus districts which account for more than 50% of the undernourished children and women. • Special attention on 0-3 age group, adolescent girls, pregnant and lactating mothers. • Provision of better physical infrastructure (construction of AnganwadiCentres). • A coordinated action plan involving health, water supply, sanitation, food and public distribution etc. • A strong component of IEC for better feeding practices.

18. Major Plan Schemes: Education • India on track to achieve MDGs relating to educational attainments. • Primary education for children up to age 14 a fundamental right. • Net Enrollment rate at primary level for girls and boys above 98%. • Right to education Act passed in 2009. • Providing education a social responsibility. Even private schools have to reserve 25% seats for students from poorer sections. • A change in discourse on education: from access to quality of education.

19. Major Plan Schemes: MNREGA 1 • Right to work a legal right under National Rural Employment Guarantee Act, 2005. • Job cards issued to 12.03 crore workers. • 48% of the MNREGA beneficiaries are women. • The act has strengthen the bargaining power of the workers. • Real wages in agriculture have gone up by 18% to 45% in different states. • Reduction in distress migration and elimination of attendant problems

20. Major Plan Schemes: MNREGA 2 • The scheme has raised agricultural wages but has not contributed to increase in agricultural productivity as was envisaged. • Preponderance of earth-work related projects. • The quality of assets is a huge concern. • No possibility of skill up gradation. • Corruption in program implementation. • Twelfth Five Year Plan to launch MNREGA Phase-II with emphasis on infrastructure, skill upgradation coupled with better monitoring.

21. Major Plan Schemes: Health 1 • Progress on health indicators indicates that in the last three years the rate of reduction of IMR and MMR has accelerated. • National Rural Health Mission launched in April, 2005. • NRHM based on Indian Public Health standards. • Strengthening of Sub-centers, primary health centers and community health centers for primary and secondary health care. • Special programmes to encourage institutional delivery, pre natal & post natal care • 18 states with higher disease burden given higher allocations under NRHM

22. Major Plan Schemes: Health 2 • All vertical disease control programmes under NRHM. • Flexi funds to states, districts and dispensaries at different levels. • Investment in public health infrastructure complimented by health insurance schemes for the poor (RSBY). • Involvement of private sector. • The Twelfth Five year plan to focus on health sector. • Public expenditure on health to be raised from 1.4% of the GDP in 2011-12 to 2.5% of the GDP by the end of the Twelfth Five Year Plan.

23. National Skill Development Mission • Mission launched to provide training to workforce so that they could get gainfully employed. • Mission to train 500 million youth in different vocations by 2022 • Training to be provided across vocations covering industry, services and agriculture. • Public and Private sector participation (PPP). • National Skill Development Corporation set up as a non profit company with 51% private equity and 49% govt. equity.

24. Allocation for Major Programmes(in Rs Crores)

25. Financing Arrangements for Specific Programmes • Education cess on direct income tax for funding primary education. • Cess on petrol and diesel to take up road construction in rural areas and national highways. • Universal service obligation fund (USOF) to improve telephone connectivity in under served areas. • Cess on coal production to fund renewable energy projects.

26. Area Development Programmes • Backward region grant fund. • Border area development programme. • Special package for Bihar, Odisha. • 10% of the plan budget for North-Eastern states. • Special dispensation for Indian-Himalayan region states

27. Programmes for Weaker Sections • Special component plan for schedule castes. • Special component plan for schedule tribes. • Schemes for backwards classes and minorities. • Specific schemes for persons with special needs • Gender budgeting

28. Governance Reforms 1 • Better implementation of programmes and improving accountability is recognized as a prerequisite for inclusive growth. • Reform of governance and making government more responsive to people’s needs and aspirations a major agenda for the Twelfth Five Year Plan. • Legislative action for setting standards for public service delivery. • Reform of police administration. • Judicial reforms for speedy disposal of cases. • Strengthening Panchayati Raj institutions and urban local bodies. • Use of Information Technology for better governance.

29. Governance Reforms 2 Unique Identification Authority of India would provide a unique identity number “AADHAAR” to each resident of the country. AADHAAR is being created as a platform for public service delivery and governance reforms. Pilot projects have been undertaken to provide direct cash transfers to beneficiaries of scholarship schemes, old age pension, delivery of LPG cylinders. AADHAAR is used for financial inclusion, valid for opening no frill accounts, access through Micro-ATMs and business correspondents. Integration of AADHAAR in PDS, MNREGA and other beneficiary oriented programmes. On complete roll out it is expected that poor people would be able to access government programmes and there would be considerable savings by elimination of corruption.

30. THANK YOU