Beyond Growth Metrics: Measuring Progress In The New Economy

Source: Listen to the people, not the numbers (The Hindu, November 22, 2023)

The core issue in India’s economy is stagnant incomes, not a lack of growth. Despite strong GDP numbers, the benefits aren’t reaching a broad swath of the population. Calls for job reservations across all economic classes are growing louder.

The Debate Among Economists

Government Versus Opposition: Economists are split on job creation. Debate intensifies over the accuracy of government job data. Critics blame current policies for the jobless growth situation.
The Data Dilemma: Statistics highlight growth but don’t solve the employment issue. The numbers fall short in addressing the real problems or guiding towards effective solutions.

Sustainable Growth and Employment Challenges in India

The Shift from Agriculture to Services: India tried to skip from farming to tech services in the 1990s, hoping it would create growth. But this path isn’t working anymore. There aren’t enough tech service jobs for all the young people looking for work.
Education and Job Mismatch: Many people from rural areas don’t have the right education for these tech jobs. When they leave farming, they need jobs that match their current skills and help them learn more over time.
Jobs in Manufacturing, Services, and Construction: People leaving agriculture are filling positions in these industries. These jobs are meant to be the first step on a career ladder for them.
The Quality of Jobs: The issue is the quality of jobs, which is lacking. The pay is low, positions are often temporary, and there’s no help for workers to learn more and improve their skills.
Contract Work in Large Enterprises: Even in big companies, many workers are hired as contract labour. This gives the company the chance to be flexible and save money, but contract workers earn less and have less job security. They also don’t get chances to develop their skills.

Economic Value of Unpaid Work

Unpaid labour, often performed by women, remains uncounted in traditional economic metrics. Caregiving at home or working informally doesn’t earn wages. Thus, it’s invisible in measures like GDP.

Reframing Economic Theory: Our social structures, like families, are bent to fit corporate models. This distorts their true economic role. While GDP may rise, human care dwindles. We need a new measure for growth, one that values what we truly treasure for the future.
Inclusive Policy Making: Listening to the Undervalued: Policy must evolve by hearing from those the current system overlooks. Workers, farmers, and women hold insights undervalued by economic ‘experts’.
Beyond Statistics: To shape a better future, policymakers should look beyond past data. They must pay attention to what really matters to people living in reality.

Beyond Growth Metrics: Measuring Progress In The New Economy