Addressing chief ministers of the states in July 2019, Prime Minister Narendra Modi was reported as having said that he wanted India to be a "$5 trillion economy" by 2024. This means roughly doubling of the size of our economy in 5 years.
As a part of the efforts to accelerate the economic activities of the nation, the union government announced in February 2018 its decision to set up 12 additional nuclear power reactors. Also being planned and constructed are many coal based and dam based power plants to support the energy demands of such accelerated economic activity.
The country has also embarked on having a total capacity of 175,000 MW of renewable energy by 2022. These are all a part of the ease of doing business environment, and making India global hub of manufacturing in addition to massive number of investments in setting up roads, railways, dams, industries, airports etc.
When we note the official statements that the country has a surplus power generating capacity which will last several years, and that it is looking for opportunities to export electricity, there seems an urgent need to review the high GDP growth rate paradigm keeping in mind the all-round welfare needs of our society.
Successive governments in the country have been focusing on a high GDP growth rate since the 1990s, supposedly as the road map to eliminate poverty. After decades of such a focus, what is the experience of society as a whole? Is such high growth year after year desirable, is it truly in the interest of our communities?
Very often the issues of economic development and environment are wrongly pitted against each other. Since everything we see around us is provided by nature, the necessity of harnessing natural resources on a sustainable basis need not be emphasised.
The frenetic growth in non-agricultural sectors, as is happening in many states of our union, may lead to instability (directly and indirectly) in the production and productivity of food and other agricultural products. Such a probability of lowered agricultural output in the context of a huge and growing population should be a matter of matter of grave concern to our country.
There are also genuine concerns among environmentalists, that the policy of high business growth at any cost is seriously compromising the environment, as evidenced by the deteriorating environment all over the world. Serious concerns on the pollution of air, water and soil, as has been reported from different parts of the country, cannot be ignored any longer. The fact that global warming is clearly associated with a huge and deleterious impact on food production should make this issue of even greater concern.
In this context, the primary question should be whether the PMs stated doubling of the wealth of society without regard to its distribution or true worth in a decade should come at a huge cost to large sections of our society. How much are such societal costs acceptable, and who gets to decide?
Under the kind of economy we have at present, a sustained high GDP growth rate will mean:
The setting up of more factories or manufacturing facilities; consumption of large quantities of raw materials such as iron, steel, cement, chemicals etc.; increasing an unsustainable demand for natural resources such as land, water, minerals, timber etc.; acute pressure from businesses on the government to divert agricultural or forest lands; huge demand for various forms of energy (petroleum products, coal, electricity etc.); accelerated urban migration; a clamour for more of airports, airlines, hotels, shopping malls, private vehicles, express highways etc.
A vast increase in each of these activities, while increasing the total greenhouse gas (GHG, responsible for global warming) emissions, will also reduce the overall ability of natural carbon sinks such as forests to absorb these emissions. There will also be increased pollution of land, air and water, along with huge issues of managing the solid, liquid and gaseous wastes.
The governments own draft National Resource Efficiency Policy, 2019 points out many concerns in India:
- High import dependency of many critical raw materials
- 30% of land undergoing degradation
- Highest water withdrawal globally for agriculture
- 3rd highest CO2 emitter, responsible for 6.9% of global CO2 emissions
- Much lower recycling rate at 20-25% compared to 70% in developed countries
- Low material productivity compared to global average
- 3rd largest material demand (in 2010)
- Resource extraction of 1,580 tonnes/acre much higher than the world average of 450 tonnes/acre.
The assumption that the country needs to sustain economic growth of 8-9 % over the next 20 years to eradicate poverty and to meet its human development goals, will lead to very many intractable problems for the society from social and environmental perspectives.
Besides, such a simple correlation between income and human development, without concerted state intervention to improve the latter, is rarely in evidence.
Such a high growth rate has never been found necessary in developed economies, where even at the highest growth period they are reported to have registered only 3-4 % growth. The so called trickle down benefits to vulnerable sections of our society through 8-9 % growth will be negligible as compared to the all-round benefits associated with equitable growth at a greatly reduced rate, 3-4%, if we harness our natural resources responsibly.
The consequential social and environmental impacts of high GDP growth rate in China, Indonesia, Malaysia, Bolivia etc. for many years continuously should establish that the concerns are similar everywhere, whereas the poverty has not been eliminated fully.
The Club of Rome had raised considerable public attention in this regard way back in 1972 with its report The Limits to Growth. It had predicted that economic growth could not continue indefinitely because of the limited availability of natural resources, particularly oil. A 2011 study of those predictions found that the warnings we received in 1972... are becoming increasingly more worrisome as reality seems to be following closely the curves that the... scenario had generated.
We in India should keep in mind that air pollution here is so bad that it kills about half a million people every year.
And despite a high GDP growth rate since 1996, about 30% of the population in the country are still reportedly living below international poverty lines.
The consequences of high GDP growth will result in depriving the dispossessed sections of society of access even to natural resources (such as forests, rivers and fertile land), while driving fragile ecologies to a point of no return.
Already a joint study by the World Bank and University of Washington released in 2016 has estimated that in 2013 the environmental degradation costs to India, including welfare costs and lost labour income due to air pollution, was of about 8.5 % of its economy.
These World Bank estimates may indicate that net growth in our economy is probably negative when we take the environmental degradation and health costs into objective consideration.
In this context, how advisable is it to plan to double the size of our economy in the next 5 years?
As far back as 1974, the Cocoyoc Declaration in Mexico had unequivocally stated the criticality to limit our needs within the natures limits. Organised by UNEP and the United Nations Commission on Trade and Development, this symposium identified the economic and social factors which lead to environmental deterioration:
The combined destructive impacts of a poor majority struggling to stay alive and an affluent minority consuming most of the world's resources are undermining the very means by which all people can survive and flourish.
We are all in need of a redefinition of our goals, or new development strategies, or new lifestyles, including more modest patterns of consumption among the rich.
Should we not focus instead on those economic activities which will not lead to further diversion of forest/agricultural lands, which will not demand much of water and energy, which will not lead to pollution of land, air and water, and which will lead to sustainable harnessing of our natural resources? Such activities may include sustainable agriculture, horticulture and animal husbandry, forestry, health and educational services, IT&BT, eco & health tourism etc.
In this context it is pertinent to know what Tamil Nadu State Action Plan on Climate Change (TNSAPCC) has said: Global development experience reveals that one percent growth in agriculture [and allied activities] is at least two or three times more effective in reducing poverty than the type of same growth emanating from non-agricultural sector.
Can we hope that the tall claims by the government on the issue of climate change and on economic growth will be matched by an effective action plan to minimise the pollution and contamination issues of our communities, by urgently moving away from the high GDP growth rate paradigm?
Shankar Sharma is a power policy analyst.
Visit link:
Growing GDP Amid Hazardous Pollution The True Welfare of our Communities? - The Citizen
- Recruitment - Wikipedia [Last Updated On: January 27th, 2017] [Originally Added On: January 27th, 2017]
- Resource-based economy and pay-it-forward | The Moneyless ... [Last Updated On: January 30th, 2017] [Originally Added On: January 30th, 2017]
- A Resource Based Economy - worldsocialism.org [Last Updated On: January 30th, 2017] [Originally Added On: January 30th, 2017]
- Trump's Flawed Logic Regarding US-Mexico Relations - Fair Observer [Last Updated On: February 7th, 2017] [Originally Added On: February 7th, 2017]
- Economic freedom achievable through knowledge based economy, innovative technical skill development - President - Asian Tribune [Last Updated On: February 7th, 2017] [Originally Added On: February 7th, 2017]
- Younger generation inheritors of knowledge-based economy: President - Lanka Business Online [Last Updated On: February 7th, 2017] [Originally Added On: February 7th, 2017]
- Morguard - 2017 Real Estate Investment Trends to Watch in Canada - Canada NewsWire (press release) [Last Updated On: February 7th, 2017] [Originally Added On: February 7th, 2017]
- Ask Yourself These Two Questions About America's Economic Future - Fortune [Last Updated On: February 8th, 2017] [Originally Added On: February 8th, 2017]
- The Informal Economy and Decent Work: A Policy Resource ... [Last Updated On: February 8th, 2017] [Originally Added On: February 8th, 2017]
- Thunder Bay's population experiencing low growth - Tbnewswatch.com [Last Updated On: February 9th, 2017] [Originally Added On: February 9th, 2017]
- Substantial investment in agriculture needed to ensure enough food for all - Daily Nation [Last Updated On: February 9th, 2017] [Originally Added On: February 9th, 2017]
- Can Russia project power while battered by economic woes? - Asia Times [Last Updated On: February 9th, 2017] [Originally Added On: February 9th, 2017]
- When will Russia finally break its 'resource curse'? - Russia Direct [Last Updated On: February 10th, 2017] [Originally Added On: February 10th, 2017]
- TEA & TWO SLICES | On Giant Snow Penises And Christy Clark's Shudder-Worthy Interview - Scout Magazine (blog) [Last Updated On: February 10th, 2017] [Originally Added On: February 10th, 2017]
- Can Russia project power while battered by economic woes ... - MENAFN.COM [Last Updated On: February 11th, 2017] [Originally Added On: February 11th, 2017]
- Siemens backs Qatar''s economic ambitions with innovation - MENAFN.COM [Last Updated On: February 12th, 2017] [Originally Added On: February 12th, 2017]
- The 'Dutch disease' reexamined: Resource booms can benefit the wider economy - USAPP American Politics and Policy (blog) [Last Updated On: February 13th, 2017] [Originally Added On: February 13th, 2017]
- Charles Lawton: Here's a proposal to create real equality of job opportunity - Press Herald [Last Updated On: February 14th, 2017] [Originally Added On: February 14th, 2017]
- India can't write-off coal-based energy so soon: World Coal Association - Economic Times [Last Updated On: February 14th, 2017] [Originally Added On: February 14th, 2017]
- The pathologies of redistributive resource transfers - Livemint [Last Updated On: February 15th, 2017] [Originally Added On: February 15th, 2017]
- Jessica Wright: Well-managed farmland benefits community, watershed - Conway Daily Sun [Last Updated On: February 15th, 2017] [Originally Added On: February 15th, 2017]
- Evaluate FLSA for its Ability to Keep Pace with Today's Workplace, SHRM Tells House Subcommittee - SHRM [Last Updated On: February 16th, 2017] [Originally Added On: February 16th, 2017]
- Officials hope fiber optic expansion helps diversify Decatur's economy - The Decatur Daily [Last Updated On: February 16th, 2017] [Originally Added On: February 16th, 2017]
- 10th Biennial Nehalem Bay Estuary Cleanup set - Tillamook Headlight-Herald [Last Updated On: February 16th, 2017] [Originally Added On: February 16th, 2017]
- Howard gives Barnett a hand on hustings - The West Australian [Last Updated On: February 18th, 2017] [Originally Added On: February 18th, 2017]
- EDITORIAL COMMENT: Let's celebrate President's birthday with ... - Chronicle [Last Updated On: February 20th, 2017] [Originally Added On: February 20th, 2017]
- Kentucky Main Street Program Communities Contributed $110M to State Economy in 2016 - WMKY [Last Updated On: February 20th, 2017] [Originally Added On: February 20th, 2017]
- GM, Steelcase see a web of opportunity in the circular economy - GreenBiz [Last Updated On: February 21st, 2017] [Originally Added On: February 21st, 2017]
- The sputtering energy economy: Can it be revved up? - Meridian Star [Last Updated On: February 21st, 2017] [Originally Added On: February 21st, 2017]
- The difference between Malcolm Turnbull and Justin Trudeau - The Australian Financial Review [Last Updated On: February 21st, 2017] [Originally Added On: February 21st, 2017]
- In the Face of a Trump Environmental Rollback, California Stands in ... - Yale Environment 360 [Last Updated On: February 22nd, 2017] [Originally Added On: February 22nd, 2017]
- Report: Boundary Waters nets $77 million from summer visitors - Duluth News Tribune [Last Updated On: February 22nd, 2017] [Originally Added On: February 22nd, 2017]
- DENIM SPIRIT: An economy based on abundance - Finger Lakes Times [Last Updated On: February 23rd, 2017] [Originally Added On: February 23rd, 2017]
- HR International to hold confab on African economy - Guardian [Last Updated On: February 24th, 2017] [Originally Added On: February 24th, 2017]
- Event promotes innovation and technology expansion - News - Castlegar News [Last Updated On: February 24th, 2017] [Originally Added On: February 24th, 2017]
- The Venus Project Plans to Bring Humanity to the Next Stage of Social Evolution. Here's How. - Futurism [Last Updated On: February 24th, 2017] [Originally Added On: February 24th, 2017]
- Best returns since 1900? Resource based countries, including ... - Financial Post [Last Updated On: February 24th, 2017] [Originally Added On: February 24th, 2017]
- Economic growth projected for Saskatchewan in 2017 | Regina ... - Regina Leader-Post [Last Updated On: February 24th, 2017] [Originally Added On: February 24th, 2017]
- Energy as a Model for US-Mexico Economic Partnership - RealClearEnergy [Last Updated On: February 24th, 2017] [Originally Added On: February 24th, 2017]
- Science and Technology: Minister says FG will harness natural ... - Pulse Nigeria [Last Updated On: February 24th, 2017] [Originally Added On: February 24th, 2017]
- Montana Jobs Not Well Positioned - Big Sky Business Journal - Big Sky Business Journal [Last Updated On: February 25th, 2017] [Originally Added On: February 25th, 2017]
- The future of WA's economy: Life beyond mining - WAtoday [Last Updated On: February 27th, 2017] [Originally Added On: February 27th, 2017]
- Verdant Zeal set to celebrate decade of providing media solutions - Guardian [Last Updated On: February 28th, 2017] [Originally Added On: February 28th, 2017]
- Lessons from Canada's scientific resistance - Bulletin of the Atomic Scientists [Last Updated On: February 28th, 2017] [Originally Added On: February 28th, 2017]
- St Ann can do better Earl Jarrett - Jamaica Gleaner [Last Updated On: February 28th, 2017] [Originally Added On: February 28th, 2017]
- Firm canvasses technology strategy - The Nation Newspaper [Last Updated On: March 3rd, 2017] [Originally Added On: March 3rd, 2017]
- Mandryk: Next Saskatchewan boom needs to be from our heritage fund - Regina Leader-Post [Last Updated On: March 3rd, 2017] [Originally Added On: March 3rd, 2017]
- Bank of Canada channels Al Gore - Toronto Sun [Last Updated On: March 3rd, 2017] [Originally Added On: March 3rd, 2017]
- Australia's economy has been growing for 25 years straight Quartz - Quartz [Last Updated On: March 4th, 2017] [Originally Added On: March 4th, 2017]
- The Venus Project envisions a sustainable redesign of our cities and civilization - Inhabitat [Last Updated On: March 4th, 2017] [Originally Added On: March 4th, 2017]
- State's high-tech hits $1 billion economic milestone - Daily Inter Lake [Last Updated On: March 7th, 2017] [Originally Added On: March 7th, 2017]
- The startup economy - Canadian Lawyer Magazine [Last Updated On: March 7th, 2017] [Originally Added On: March 7th, 2017]
- Nehalem Bay Estuary Cleanup - North Coast Citizen [Last Updated On: March 7th, 2017] [Originally Added On: March 7th, 2017]
- Pipelines to be a 'fundamental' issue for NDP leadership race: Julian - Hill Times (subscription) [Last Updated On: March 8th, 2017] [Originally Added On: March 8th, 2017]
- Prime Minister Trudeau, no fan of the middle class - Hill Times (subscription) [Last Updated On: March 8th, 2017] [Originally Added On: March 8th, 2017]
- Finally, Democrats Have A Pro Wrestler In Their Corner - Huffington Post [Last Updated On: March 9th, 2017] [Originally Added On: March 9th, 2017]
- WA election: Labor outlines campaign costings and debt reduction plan - ABC Online [Last Updated On: March 9th, 2017] [Originally Added On: March 9th, 2017]
- WA election: Death threats, One Nation legal action, stadium stoush campaign trail action - ABC Online [Last Updated On: March 9th, 2017] [Originally Added On: March 9th, 2017]
- Russia, Israeli firm agree to invest $100 mln in Russia's dairy industry - Reuters [Last Updated On: March 10th, 2017] [Originally Added On: March 10th, 2017]
- Maine deserves a chance to capitalize on the North Woods monument - Bangor Daily News [Last Updated On: March 10th, 2017] [Originally Added On: March 10th, 2017]
- MAN, RMRDC, others to promote resource-based MSMEs,funding - The Nation Newspaper [Last Updated On: March 10th, 2017] [Originally Added On: March 10th, 2017]
- Jobs, education focus of Gov. Brown's Prineville visit - KTVZ - KTVZ [Last Updated On: March 10th, 2017] [Originally Added On: March 10th, 2017]
- HIKE NETARTS BAYOCEAN SPIT - North Coast Citizen [Last Updated On: March 11th, 2017] [Originally Added On: March 11th, 2017]
- Jobs versus or for the environment? - Budgeeter News [Last Updated On: March 11th, 2017] [Originally Added On: March 11th, 2017]
- Canada Invests $325 Million in the Fish and Seafood Sector - Yahoo Finance [Last Updated On: March 11th, 2017] [Originally Added On: March 11th, 2017]
- We are taking steps to overhaul economy through knowledge-based ... - TheNewsGuru (satire) (press release) (blog) [Last Updated On: March 11th, 2017] [Originally Added On: March 11th, 2017]
- Canada Invests $325 Million in the Fish and Seafood Sector - Marketwired (press release) [Last Updated On: March 12th, 2017] [Originally Added On: March 12th, 2017]
- Saskatchewan gender, immigrant wage gaps among widest in Canada - Saskatoon StarPhoenix [Last Updated On: April 8th, 2017] [Originally Added On: April 8th, 2017]
- Week in Film: Endless LOLs, an Acid Western, and Great Advice ... - Bedford + Bowery [Last Updated On: April 8th, 2017] [Originally Added On: April 8th, 2017]
- Famous fish the focus of 'steelhead ecology' hike - Tillamook Headlight-Herald [Last Updated On: April 8th, 2017] [Originally Added On: April 8th, 2017]
- 'Explore Nature' sets Cape Lookout hike - Tillamook Headlight-Herald [Last Updated On: April 8th, 2017] [Originally Added On: April 8th, 2017]
- Califonria Lawmakers approve billion dollar gas tax | KBAK - Bakersfield Now [Last Updated On: April 8th, 2017] [Originally Added On: April 8th, 2017]
- Globe editorial: On pipelines, Ottawa must have the final say - The ... - The Globe and Mail [Last Updated On: June 6th, 2017] [Originally Added On: June 6th, 2017]
- Politics biggest determinant of economic future, says Page - Tbnewswatch.com [Last Updated On: June 6th, 2017] [Originally Added On: June 6th, 2017]
- Our Turn: Pass SB 129, save 900 New Hampshire jobs - Concord Monitor [Last Updated On: June 6th, 2017] [Originally Added On: June 6th, 2017]
- We'll Always Have Paris: Trump's Impact On The Climate Agreement - HuffPost [Last Updated On: June 6th, 2017] [Originally Added On: June 6th, 2017]
- A strategy that will make Canadian innovation flourish - The Globe and Mail [Last Updated On: June 6th, 2017] [Originally Added On: June 6th, 2017]
- Ocean Conference Side Events Highlight Cooperation on SDG 14 ... - IISD Reporting Services [Last Updated On: June 7th, 2017] [Originally Added On: June 7th, 2017]
- We must tap 'blue economy' for progress - Daily Nation [Last Updated On: June 8th, 2017] [Originally Added On: June 8th, 2017]
- Minnesota Power Proposes Next Step in EnergyForward Plan - POWER magazine [Last Updated On: June 9th, 2017] [Originally Added On: June 9th, 2017]