Book Review

Prof. Aditi Thakur (Assistant Prof. DMI) presented a review of Prof. P.V. Indiresan's book Managing Development. Prof. Jaya Indiresan with reference to Prof. Indiresan's book spoke that the reforms and free markets have, by and large, yielded fruits only in developed countries. In developed nations, public goods are already in place, and further growth depends on services, leisure industries, entertainment, travel, fashion, cultural pursuits and the like. All these have high price elasticity; they respond well to market forces. In developing countries, such as India, they have not been equally successful.

The reason is not far to seek: Markets are effective only where prices provide strong signals. They perform well where price elasticity is high, not otherwise. In contrast, what developing countries like India need most are basic amenities such as roads, sanitation, primary education, and basic health services. Such needs are mainly in the nature of public goods. They have little or no price elasticity. Hence, in poor countries, commercial markets do not get strong enough signals for development. Developing countries should, therefore, develop their own development policies; they cannot blindly imitate what rich nations do. In developing countries, such as India, both globalisation and swadeshi should be promoted in such a way that not only does each one grow by itself, but also stimulates the growth of the other. The author offers solution to growth and productivity employment conundrum.

The rapid growth needs:

  • Willingness to give up outmoded practices.
  • Willingness to try novel ideas.
  • Willingness to work.
  • And the solution to the productivity-employment conundrum is:
  • Maximise productivity of tradables to maximise global competitiveness.
  • Minimise productivity of non-tradables to maximise employment.
  • Cross-subsidise non-tradables with profits from tradables.
  • The two-day symposium was divided into themes which are the key elements in
  • conceptualizing the pathways to good society.

Theme 1: Sustainable Livelihoods Promotion

The afternoon session on Sustainable Livelihoods Promotion was moderated by Prof. B. N. Hiremath (DAIICT, Gandhinagar, Gujarat). Prof Hiremath posed some important questions for just society.