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Attempts to achieve social justice, prosperity in India

The public and private sectors need to walk hand in hand to achieve social justice and prosperity for all

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The journey from being an underdeveloped economy to an emerging one is relatively easy to achieve for many countries, especially if governments formulate policies that are investor and business friendly, boost exports and pursue economic reforms.
But the journey from emerging economy status to a developed economy is a tough one, as progress has to be achieved not just on the basis of economic parameters, but also in terms of dramatic improvements on the social front, especially considering aspects such as infant mortality, child malnutrition, education, disparities of income and public health.
As the World Bank observes: "Overcoming poverty is not just a matter of getting economic policies right - it is also about promoting social development, which empowers people by creating more inclusive, cohesive, resilient, and accountable institutions and societies." The World Bank integrates the principles of social development into its lending policies.
India has achieved remarkable progress economically, especially after it embarked on the reforms programme in the 1990s. Fortunately, unlike many emerging economies, it is also a vibrant parliamentary democracy, with a free press, an independent judiciary, an articulate civil society and a flourishing political and social culture.
It has been so - except for a minor 18-month aberration in the mid-1970s - ever since it won independence in 1947. India has also seen successive changes in governments following the holding of free and fair elections.
The technology revolution - as evident from the proliferation of mobile phones, smartphones, the internet, and satellite television - has also brought about astounding changes and transparency in the country.
While television networks and newspapers are focusing on corruption and injustice, government leaders are also leveraging technology to promote concepts of gender equality, public health concerns and education.
However, the country needs to make a lot more progress on the social front over the next two to three decades to ensure it leapfrogs to the developed world status, ranking among the top three global economies, along with the US and China.
India is indeed making significant progress in terms of achieving the eight international development goals set out by the UN in terms of the Millennium Development Goals (MDGs). The goals are:

• Eradicate extreme poverty and hunger
• Achieve universal primary education
• Promote gender equality
• Reduce child mortality
• Improve maternal health
• Combat HIV/AIDS, malaria, and other diseases
• Ensure environmental sustainability
• Develop a global partnership for development

 
Government policies in recent years have focused on investing money and other resources in pursing the MDGs. Even on the legislative front, the government has introduced landmark bills in recent years and after much debate in parliament and outside, brought them on the statute books. These include the Right to Information, the Right to Education and the National Employment Guarantee Scheme.
But considering the magnitude of the challenges confronting the country, the government alone cannot achieve the MDG targets or bring about major changes on the social front. Fortunately, India has a vibrant civil society. According to the government, there are more than three million NGOs operating in the country and many of them are doing remarkable work with underprivileged communities.
Indian businesses have also been active on the corporate social responsibility front, with many leading business houses, including the Tatas, having done commendable work over the decades in rural areas.
A few years ago, the government introduced changes to the Companies Act, making it mandatory for companies with a net worth of Rs5 billion or more, or a turnover of Rs10 billion or more, or a net profit of Rs50 million or more in a fiscal, to set aside two per cent of their average net profits (earned over the preceding three years) for CSR activities.
The new norms were applicable from April 1, 2014, and the government estimated that about Rs140 billion would be spent in the first year after implementation. The response from the corporate sector has been mixed. While almost all the top Indian and multinational corporates have adhered to the norms, there are many lagging.
Jayant Sinha, the Minister of State for Finance, says the two per cent set apart by corporates for CSR activities will be a game-changer for NGOs in India. The government is now planning to encourage the venture capital sector to fund social sector initiatives and sustainable development.
Governments, both at the federal and state levels, are becoming proactive and promoting causes that will help change the feudal mindset prevalent in many parts of India, both in the urban and rural areas.