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LATEST NEWS UPDATES | Amartya Sen backs Bihar’s growth model

Amartya Sen backs Bihar’s growth model

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published Published on Jul 22, 2013   modified Modified on Jul 22, 2013
-The Times of India

 

NEW DELHI: Nobel laureate Amartya Sen on Sunday backed Bihar's growth strategy, arguing that growth was not independent of social transformation.

"What is needed is an integrated approach for development and growth," Sen said at a book release event. Citing Japan's model, which was later adopted by South Korea, Taiwan, Hong Kong and Singapore, the noted economist suggested that without education and proper health facilities, it was difficult to achieve balanced growth. "Educated labour force is the biggest guarantor... Education and healthy labour force is able to produce everything from IT to auto parts," Sen said.

At the same time, he recognized the impressive growth rate, of over 11%, recorded by the eastern state during the 11th five-year plan (2007-2012) and said it was an important indicator and showed the ability to change.

While the state ranks poorly on most human development indicators, its performance has improved in recent years, which economists say is driven by better administration and steps to improve literacy and health facilities. Bihar is demanding special state status - to access more central funds and offer tax incentives to attract investment - to bolster its growth and development. Bihar chief minister Nitish Kumar has been at the forefront of the demand and even organized a rally in the national Capital to press for the tag.

Even as the Centre is evaluating a demand, renowned economist Nicholas Stern, who has co-edited the book with Rajya Sabha member N K Singh, pushed for a special status tag. "From the point of view of poverty, distribution of income and point of view of demonstrating the change, a special category status would be appropriate," he said.

Sen's praise for the Bihar model is significant because the build-up to the general elections has also been framed as a duel between competing models of growth. One is the inclusive growth model which UPA and Bihar claim to represent, and which won praise from Sen. The other, Gujarat's emphasis on higher rate as the solution to poverty reduction, is backed by the likes of Jagdish Bhagwati and Arvind Panagariya.


The Times of India, 22 July, 2013, http://timesofindia.indiatimes.com/india/Amartya-Sen-backs-Bihars-growth-model/articleshow/21227723.cms


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