The trajectory of progress must change

Source– The post is based on the article “The trajectory of progress must change” published in the “The Hindu” on 3rd August 2023.

Syllabus: GS3- Economy

Relevance: Issues related to global economic development

News– The article explains the challenges faced by the global community and potential solutions to these challenges.

What are the challenges faced by the global community?

The state of global governance is concerning. The world is experiencing divisions and conflicts among nations, leading to wars. There are issues of rising inequalities. Migrants are risking their lives in search of safety and improved living conditions.

The current path humanity is on is unsustainable. Economists often use statistical data to argue that poverty is decreasing and incomes are rising for everyone. However, it is essential for them to observe the ground realities.

Earth is experiencing continuous warming. The current consumptive model of economic growth is unsustainable.

Employment instability is on the rise, even in wealthy nations.

In 2015, the world community adopted the 17 UN Sustainable Development Goals.

Not all 17 issues are prevalent in every country. For instance, island nations face immediate life-threatening problems related to the oceans, while landlocked countries may not experience the same issues.

What are the potential solutions to challenges faced by the global community?

More economic growth will not solve the global issues. Economic growth must transform into a sustainable and equitable approach.

As per Einstein, persisting to address systemic issues with the same flawed methods that caused them is irrational. He advocated for a new paradigm in global governance.

It is evident that a single global solution for environmental, societal, or economic challenges cannot be universally applied. Instead, tailored and localised solutions are necessary. One-size-fits-all approaches cannot adequately address the diverse array of challenges we encounter.

These solutions should encompass a combination of approaches to tackle economic, environmental, and social challenges collaboratively.

The McKinsey Global Institute recently published a comprehensive report titled “Pixels of Progress: A granular look at human development around the world”.

It delves into the actual progress experienced on the ground. It goes beyond the conventional statistical methods and GDP.

The report focuses on life expectancy and incomes, to assess the well-being of individuals. Surprisingly, the findings reveal that only 20% of the progress observed can be attributed to the country-level GDP growth.

The vast majority, 80% of the progress, is intricately tied to local factors and specific conditions.

What is the approach of India for resolving the challenges faced by the global community?

As the chair of the G-20, India has put forward a vision of Vasudhaiva Kutumbakam. It aims to foster global unity and improve conditions for all individuals worldwide.

India has also introduced an approach known as LiFE to the G-20. It advocates for synchronised efforts among various stakeholders at all levels, underpinned by collective actions across society.

Principle 7 of LiFE emphasises the importance of acknowledging and enhancing the contributions of local communities, local and regional governments, and traditional knowledge in promoting sustainable ways of living.