Perspective- Sustainable, Balanced & Inclusive Growth | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC PDF Download

Introduction

• Following the successful G20 Leaders' Summit in New Delhi, Brazil has assumed the G20 presidency from December 1st. During India's tenure as the G20 Chair, efforts were made to foster unity, break barriers, and promote collaboration fostering a world where unity prevails over discord.
• India's ethos of Vasudhaiva Kutumbakam (the world is one family) was reflected in the eight overarching themes outlined in the New Delhi Leaders' Declaration. 
• These themes emphasized a comprehensive outlook, urging global progress as a universal family transcending boundaries, languages, and ideologies. 
• The focus here will be on discussing each theme of the G20 New Delhi Leaders' Declaration that advocates for progress centered around humanity.

Achieving Balanced Growth

Following the financial crisis, G20 Leaders committed to ensuring enduring recovery and robust, sustainable growth through the G20 Mutual Assessment Process (MAP). To achieve this objective, they initiated the Framework for achieving strong, sustainable, and balanced growth, overseen by the G20 Framework Working Group (FWG). While the cost-of-living crisis has eased due to declining food and energy prices, it remains a significant concern in the world's poorest economies. Some emerging market economies face mounting debt vulnerabilities due to escalating debt servicing costs and the strengthening dollar.

• Sustainable Resource Management: Responsible utilization and management of natural resources are vital for environmental preservation.
• Climate Change Mitigation and Adaptation: Combating climate change by safeguarding the environment is crucial for adaptation and mitigation efforts.
• Ecosystem Services: Ensuring environmental preservation supports essential services like clean air, water, crop pollination, and nutrient cycling, underpinning human well-being and economic activities.
• Resilience to Natural Disasters: Protecting natural habitats such as wetlands and mangroves can act as natural shields against disasters like floods, hurricanes, and tsunamis.
  • Economic growth harmonized with environmental preservation can bolster resilience and minimize the economic impact of such calamities.
• Tourism and Recreation: Many economies heavily reliant on tourism and recreational activities often center them around natural landscapes and biodiversity.
• Health and Productivity: A clean environment positively impacts public health, leading to increased economic productivity and reduced healthcare costs.
• Innovation and Green Technologies: Prioritizing environmental preservation fosters research and investment in green technologies and sustainable practices, potentially creating new industries, jobs, and economic growth.
• International Relations and Trade: Nations upholding strong environmental preservation measures often garner more favorable international relations and trade agreements, facilitating access to global markets.
• Long-Term Economic Stability: Economic growth without environmental considerations risks boom-and-bust cycles due to resource depletion and environmental harm. Prioritizing sustainability promotes more stable, resilient, and predictable economic growth paths.

Economic Growth and Social Equity

G-20 policymakers need to maintain focus on achieving inflation targets while working towards reviving growth prospects.

• Inclusive Growth: Economic advancement must encompass all segments of society, especially marginalized groups. Policies should aim to diminish income disparities and create pathways for socio-economic progress for all individuals.
• Poverty Alleviation: Social justice demands concerted efforts to lift people out of poverty. Economic growth should be utilized to generate employment, enhance education, and improve healthcare, effectively reducing poverty and elevating the overall welfare of citizens.
• Access to Essential Services: Economic progress should accompany improved access to fundamental services like education, healthcare, housing, and clean water. This ensures that economic development translates into enhanced living standards for the entire populace.
• Equitable Labor Practices: Sustainable economic growth should be supported by fair labor policies that safeguard workers' rights, ensure fair wages, and maintain safe working conditions, preventing exploitation and fostering a more equitable society.
• Social Safety Measures: Establishing safety nets can provide support to those impacted by economic changes or downturns. These safety nets might include unemployment benefits, food aid, and affordable healthcare, among other programs.
• Equitable Taxation: Progressive taxation plays a crucial role in promoting social justice. Wealthier individuals and corporations should contribute a higher proportion of their income to support social welfare programs and infrastructure development.
• Empowerment and Engagement: Social justice involves empowering individuals and communities to engage in economic decision-making. This encompasses citizen involvement in policy creation, encouraging community engagement, and promoting local businesses.

Conclusion

• Collaborative multilateral efforts among G-20 policymakers are imperative to tackle global challenges.
• The medium-term risks to the global economy—such as supporting vulnerable economies, resisting further economic fragmentation, and combating climate change—are global in nature and necessitate collaborative resolution.
• Enhanced coordination on debt resolution, including through the G-20 Common Framework supported by the Global Sovereign Debt Roundtable, is essential.
• Countries should reduce trade tensions, strengthen the multilateral trading system, and address food and energy security.
• Achieving net-zero carbon emissions requires coordinated efforts on carbon pricing or equivalent policies.