Page 10 - web version Annual Report-2022

Reasons for Growing Force of tradition

Inequalities Gender and caste inequalities are known
to be far worse in some of the states.

Skewed cost-benefit on money spent
Stagnant industrialization government administration
service sector emerged as the driver of The high and rising employee cost of govt.
economic growth benefiting few and administration reduces capacity to spend
replacing industry which had potential to on development and leads to
benefit many. under-investment. However, hamstrung
by complex procedures and plagued by
Deepening agrarian crisis allegedly ubiquitous corruption, the
The ratio of per worker GDP in ag to per delivery capacity does not match the
worker GDP in non-agricultural sector* massive resource spend on the staff.
has been declining (0.36 in 1981 to 0.14 in
2011). During 2013-19, the avg Federalism & differential administrative
agricultural GDP growth rate was 3.1%, diligence across states
much lower than avg GDP growth of 6.7%. The action required for improvement in
Even this growth in agriculture was driven development parameters lies mostly with
by non-crop sectors like livestock. the state Governments as health,
education, agriculture etc. are all state
Failure of market reforms subjects. The levels of diligence and
in the Industry to create employment efficiency across states vary a great deal
commensurate to India’s growing and this is illustrated by the fact that
population. Southern states have in general out
performed Northern states on most
parameters.
Other Linear Causes

Under investment in social sector
Trend of secular under-investment in the
social sector, particularly as it concerns
rural India. E.g., absence of toilets for
school children; inadequacy of teachers in
schools, absence of required number of
health facilities to reach out to the rural
population, state of rural roads etc.

Middle class abandoning public services
With upward mobility the ‘middle-class’ is
moving towards private sector & only the
economically backward section are using
‘public services’ who have limited ability
to negotiate & raise questions on
accountability. This leads to an unchecked
deterioration in the quality of these
services and hence in metrics of
outcomes.

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