How can businesses worldwide promote inclusive growth and development?

Source: The post how businesses worldwide can promote inclusive growth and development has been created, based on the article “Essential business priorities in a changing world” published in “The Hindu” on 21st October 2024

UPSC Syllabus Topic: GS Paper 3 – Economy-growth and development And Inclusive growth

Context: The article highlights how businesses worldwide can promote inclusive growth and development. It focuses on priorities like equitable development, food security, digital innovation, sustainability, and corporate governance. Businesses must collaborate and lead efforts for a better global economy.

For detailed information on Inclusive Growth read this article here

What role do businesses play in fostering growth and spreading developmental gains?

1. Promoting Inclusive Development: Businesses must prioritize equitable growth by offering tailored programs for skilling and upskilling workers. This is crucial, especially for women, to help them adapt to evolving industrial needs. On-the-job training and partnerships with academic institutions can enhance this.
2. Supporting Financial Inclusion: Brazil’s B-20 emphasized the need for diverse credit solutions. India’s Jan Dhan Yojana successfully opened over 530 million bank accounts, transforming financial transactions and serving as a model for global financial inclusion.
3. Expanding in Africa: Africa’s inclusion in the G-20 under India’s presidency presents new opportunities. Businesses can leverage Africa’s young population and rapid growth, integrating the continent into global value chains.
4. Ensuring Food Security: Businesses play a key role in promoting sustainable agriculture. Investments in precision farming and collaboration with governments help tackle food crises caused by extreme weather.
5. Advancing Digital Transformation: Businesses should harness AI in healthcare and climate change, while investing in STEM education and mentoring social tech startups for innovation and societal impact.
6. Prioritizing Sustainability: Businesses should aim for carbon mitigation and support the net-zero transition. This includes financing for small and medium enterprises, developing renewable energy, and adopting circular economy practices.

Why Is Corporate Governance Important?

1. Businesses must maintain high standards of corporate governance by adhering to ethical practices.
2. This builds trust with communities and governments, making it easier to operate globally.
3. Strong governance is essential for driving long-term growth and ensuring compliance with regulations.

What Role Does the B20 Global Institute Play?

1. The B20 Global Institute was initiated during India’s B20 leadership.
2. It aims to align policy suggestions for businesses across G-20 countries.
3. The institute will drive action agendas that enhance business competitiveness.
4. It will monitor outcomes on priorities like inclusive growth, food security, and sustainability.
5. The Institute ensures businesses contribute to achieving global aspirations, including integrating technology and promoting renewable energy to meet net-zero targets.

Question for practice:

Discuss how businesses can promote inclusive growth and development, focusing on priorities such as equitable development, financial inclusion, food security, and sustainability.