Sub-motion 1: Kerala vs Gujarat Model
(Sen’s side)
Speaker: Shuchita Jain
The Kerala model is markedly different as it focuses on social infrastructure and participative development. Statistically, Kerala stands out in numerous fields and recently overtook Gujarat in per capita GDP. Factors that have contributed to such impressive results include active social policies, universalistic principles in provision of essential public services, comparatively efficient administration and people’s active involvement in democratic politics. There are various caveats in Gujarat’s model like economic growth is done at the cost of social infrastructure, public debt is soaring under the veil of “Business Friendly environment”, unsustainable in long run and absence of trickle-down effect.
(Bhagwati’s Side)
Speaker: Amit Pawar
The ultimate goal of economic policymaking is improvement in the living standards of the populace as this is acknowledged in both the models there is some degree of truth in both the models. However, on closer examination growth led model just edges the development model in terms of its longevity and replicability. To state this differently what we see is that growth led model is based primarily in economic factors (for example to institute business friendly policy government can work to create efficient bureaucracy, easing opening and winding up of new businesses among other things) however, the development led model needs some socio-political factors (taxation reforms or like in case of Kerala land reforms needed very strong political will with societal backing) to fall in place to efficiently redistribute wealth as envisioned.
Sub-motion 2: Only effective way of improving health conditions is through social sector programs
(Sen’s side)
Speaker: Mandeep Singh Arora
India’s position in social indicators is quite comparable with sub-Saharan countries and other poor countries. In comparison with 15 poorest non-African countries, India ranks #1 only in terms of GDP per capita, whereas India’s rank is 10 or worse in almost all social indicators. In 1990, Sri lank was the only south Asian country ahead of India in social indicators now India is the second worst just after Pakistan.
One example that growth did not help India much is that from 1993-2005, Brazil’s per capita GDP grew at just 1% or so, compared with India’s which nearly 5%. Yet the rate of poverty reduction was massive in Brazil in contrast with India where economic inequality went up.
Since India’s rapid economic growth has not achieved much on its own in last twenty years or so in reducing horrendous levels of child undernourishment or to enhance child immunization rate, therefore Sen’s approach of investing in social sector seems quite plausible rather than waiting for the trickle-down effect to work
(Bhagwati’s side)
Speaker: Sundaram
The Economic growth is obtained by an efficient use of the available resources and by increasing the capacity of production of a country. It facilitates the redistribution of incomes between population and society and Preston curve is one good example which shows how Health issues and life expectancy can be improved if significant focus is laid on income.
Given the government’s inability to deliver the service after a half century of efforts alternative models must be given a chance. In my view, the best course is to place the financial power to buy health services in the hands of the patients.
Keeping in mind the bad outcomes of public health care services over past 7 decades, Bhagwati Thinks that there is need of Public-Private Partnership in Health sector in India and it seems that Government is now moving towards that goal (example: Pradhan-Mantri Jan Arogya Abhiyan, to be rolled along with Private sector).
Sub-motion 3: To improve human capabilities, growth must precede redistributive efforts
(Sen’s side)
Speaker: Venkata Raamasrinivas M
Need to distinguish means from end- lack of one to one relationship between growth and quality of life. Quality of life assessed through capability enlargement; role of government- investments in health and education; subsequently let markets take over. Increased role of government in Bhagwati’s model. Cyclical relationship between growth and quality of life; Example of China. Question is the ordering of policies. Study published in World Development by Gustav Ranis- developing countries that focus on growth compromising human development tend to go into vicious cycle, while there is a higher chance of human development transmitting to economic growth. Labour is India’s potential – growth is conditional on its improvement- hence invest in social sector programmes.
(Bhagwati’s side)
Speaker: Urvashi Tandon
India was seen as one of the prospects to act as a role model for various developing nations in 1950s. One of the factors this rested upon India was India’s potential to improve its human capabilities. Bhagwati argued that human capabilities could be improved if economic growth directly attended to human capital. For this to happen growth was expected to consider physical capital, social changes, higher education, training and economic efficiency. For labour potential to improve growth must precede redistribution which might increase inequalities at first but would in turn generate enough resources to enable states to redistribute and mitigate the initial adverse effect.
Sub-motion 4: Saving Environmentalism from the "Environmentalists"
(Sen’s side)
Speaker: Kavya Ravindranath
The conversation around global warming, pollution etc is largely concentrated by members of the scientific community and by environmentalists. Policy decisions however are made considering several stakeholders, and though economists have a lot to say, they are generally vilified by activist groups and accused of commodifying the environment. What environmental policy thus needs are economists who consider holistic point of views and are able to reach out to all these various stakeholders. Send calls for a broadening of environmental policy. He emphasizes on the need to tunnel through the EKC, consider externalities of other alternate forms of energy production and viewing the public as active agents and not passive patients. He advocates using various forms of controls such as taxes, property rights whilst ensuring that this does not lead to further marginalizing of the poor.
(Bhagwati’s side)
Speaker: Divya Purohit
We tried to tell how prioritizing growth can lead to solutions to the environmental issues. First, we compared two countries where difference in level of GNI per capita implied differences in commitment to the environment. Then, we put forward the solutions: -
1) Accelerating growth
1a) Government should intervene in promoting and directing growth to ensure positive net environmental effects.
1b) Increased Government and Private spending led to increased demand for good environment and low pollution.
2) Free Trade
2a) via Accelerating growth
2b) easing the import of anti-pollution technology (if any)
Two reasons to reject Sen's approach is: it may lead to rising inflation (even costs of environmental resources); and failed initiatives of environmental policies and schemes.
Whereas, Bhagwati's approach would lead to initial rise in environmental degradation but gradually lead to safer environment.