On Public Consultations in economic policy – Listen to the people, not the numbers

Source: The post on Public Consultations in economic policy has been created on the article “Listen to the people, not the numbers” published in “The Hindu” on 23rd November 2023.

UPSC Syllabus Topic: GS Paper 3 Indian Economy – Indian Economy and issues relating to planning and employment.

News: The article discusses the issues with the Indian economy in general and the job market in particular. It also highlights reforms required in economic policy-making.

What are the issues with the Indian economy currently?

Although the Indian economy is growing, it has an incomes problem. Incomes are not growing sufficiently or sustainably for very large numbers of people.

There are concerns over the economy not creating enough jobs and on the accuracy of the government’s data. This is visible in the increasing pressure for reservations of jobs for all “economically weaker” sections regardless of caste or religion.

There is very little room in high-end services to absorb the large numbers of young Indians in need of jobs (moving out of agriculture). Moreover, these jobs require levels of education that people in rural areas do not have.

What are the issues with the jobs being created?

1. They do not pay enough.
2. They are temporary or on short contracts, leading to job insecurity.
3. There is a lack of social security.
4. They do not provide an opportunity to develop higher skills.

What should be done?

1. Changes in Measurements of economic growth and employment: They must not be based on 20th-century concepts of economic growth. They must be reformed to reflect forms of work and enterprises of the future.
2. Recognising the economic value in caregiving: When economists measure women’s participation in the labour force, they value only what women do in formal enterprises for money. No value is assigned to the “informal” work they do outside their homes to earn money, whether as domestic caregivers in others’ homes or on family farms. They must be valued more than economists value them today.
3. Consultations with the Masses: The process of policymaking must begin with listening to those who have not been given much value in the present economic paradigm: workers, small-holding farmers, small entrepreneurs, and women.

Question for practice:

Public consultations are required to make economic policy more responsive and effective in countering the emerging challenges. Comment.