KOCHI: The country needs a fresh design of development, which will create enough new productive jobs to absorb all the new entrants to the labour market, estimated at 10-12 million per annum, former Prime Minister Manmohan Singh has said.He was speaking on ‘Macroeconomic developments in India: Policy perspectives’, organised by the Department of Economics at St. Teresa’s College here on Saturday.
Singh also called for a fresh thinking on the role of the public and private sectors in the promotion of new technologies for an environmentally-sustainable pattern of development.
“We live in a world where developments in science and technology have become a major determinant of power and wealth of a nation. Thus fresh thinking is needed about the role of public and private sectors in the promotion of new technologies. There is more need than ever before to promote technologies which will induce an environmentally-sustainable pattern of development to help control degradation of our land, water, air and other natural resources. Above all, we need a design of development which will create enough new productive jobs to absorb all the new entrants to the labour market,” he said.
Singh highlighted the need for a new macroeconomic thought involving a judicious blend of fiscal, monetary and exchange rate policies to meet these challenges. After explaining different economic policies undertaken by the country since Independence, Singh said it was time to pause, step back and recalibrate our macroeconomic thought that will acknowledge both the virtues and pitfalls of the free markets.
“The last few decades of rapid economic development have also been accompanied by rising income inequality both at the individual and regional levels. Social mobility in India continues to be restricted, especially among the lower castes and minorities. Recent economic research has shown how income inequality in India has grown since Independence. Economists have also pointed out how state-level regional inequality in India has grown in independent India, where some states are outperforming the rest. To add to these, our nature of economic development is not leading to the creation of enough jobs to absorb all the new entrants to the labour force, estimated at 10-12 million per annum,” he said.Singh said there are no easy economic solutions for these problems as the world grapples with the dilemma of balancing the benefits and damage caused by globalisation, market failures and domestic imperatives.
During his brief speech, K V Thomas MP recalled the wholehearted support extended by Manmohan Singh for Kochi’s development during his tenure as the Prime Minister. Manmohan Singh laid the foundation for the Kochi Metro Rail project, he brought the international container terminal at Vallarpadam and the LNG project, Thomas said.
Earlier, Singh inaugurated the incubation cell of the Department of Economics. Sr Christabelle, provincial superior and manager; Sr Vinitha, director, St Teresa’s College; Sajimol Augustine M, principal, St Teresa’s College; and Thushara George, HoD, Department of Economics, spoke. Gursharan Kaur, wife of Manmohan Singh, was present on the occasion.