Engines of Growth & Development By Dr T.H. CHOWDARY Director: Center for Telecom Management and Studies Chairman: Pragna Bharati (intellect India ) Former: Chairman & Managing Director Videsh Sanchar Nigam Limited & Information Technology Advisor, Government of Andhra Pradesh T: +91(40) / (O) ® F: +91 (40) , Osmania University, Hyderabad : 16 April 2008

THC_CTMSS381_April'082 Development Economic: –Family Income –Old Age Pensions –Insurance Life, Health, Work Human: –Health –Longevity –Education –Quality of Life ( air, water, leisure, communion…) –Stable Family –Stress

THC_CTMSS381_April'083 Key Components of Human Development Material Well-Being Knowledge Longevity Mortality Nutrition Health Care Income Assets Employment Literacy Schooling Higher Education

THC_CTMSS381_April'084 Building Blocks of the Development Process Enlightenment Empowerment Enhancement Enrichment

THC_CTMSS381_April'085 Linkages Between Economic Growth & Human Development ECONOMIC GROWTH Government Households Productivity R&D Innovations Economic Policy Social Policy Public Provision Structural Factors- Assets, Income & Employment Level & Pattern of Expenditure PoorRich Expenditure on Basic Needs Education, Health, Nutrition Assets & Employment Social Security Delivery Systems-Quantum & Quality of Services Public Services Private Services Corporates HUMAN DEVELOPMENT Investment in Human Capital

THC_CTMSS381_April'086 Growth Measures (1) Rates of GDP & PCI growth Food, calories & proteins Health: Disease & Death rates Doctors Literacy, Education (graduates, S&T & R&D Electricity consumed Telecoms Motor vehicles Housing

THC_CTMSS381_April'087 Growth Measures (2) Trade Foreign Exchange Resources Tourism Roads, Railways, Ports (sea & air)

THC_CTMSS381_April'088 Ancient Engines of Growth of Wealth Conquest & loot (Greek, Persian, Roman, Egyptian, Arab, Mongol (i/c Mogul), European imperial/ Colonial conquests All these which depended on force died/ dying (US) *Empires of the future will be those of the mind (ie intellect). – Winston Churchill

THC_CTMSS381_April'089 Fuel for Modern Engines of Growth Education S&T Knowledge Creation – R&D Health Human Resources ( can overcome lack of natural resources. Eg: Singapore, Israel, Japan)

THC_CTMSS381_April'0810 Prosperity & Poverty

THC_CTMSS381_April'0811 Developing CountriesDeveloped Countries CountryPCICountryPCI Korea17,930USA37,500 Mauritius11,260Ireland30,450 Malaysia8,940Japan28,620 Brazil7,480Netherlands28,600 Thailand7,450UK27,650 China4,900Germany27,460 Sri Lanka3,730France27,460 Indonesia3,210Singapore24,180 India2,880Israel19,200 Per Capita Income (PCI)

THC_CTMSS381_April'0812 PeriodGDPPOPPCIYRS 1951 to Growth of GDP; Population; Per Capita Income (PCI) & Years for doubling PCI

THC_CTMSS381_April'0813 Poverty Ratio in Selected States (1) Contd.

THC_CTMSS381_April'0814 Poverty Ratio in Selected States(2)

THC_CTMSS381_April'0815 Content of GDP (Figs. in %) * In the year 2006

THC_CTMSS381_April'0816 The Rising Cost of Sustenance Prices for various food staples (in US $ per ton) Source: TIME, March 31, 2008)

THC_CTMSS381_April'0817 Engines of Growth(1) UK and other Western European States – Industry, Rail roads USA : –Rail Roads –Automobiles –Interstate Highways –Electronics & Computers –Defence industries –S&T (Nuclear, pace, missiles) Japan: –Automobiles & –Consumer Electronics –Semiconductors –Ship building –Robots

THC_CTMSS381_April'0818 Engines of Growth(2) Korea –Electronics –Automobiles –Ship-building –Construction China – Highways –Railways –Dams & Canals –Telecoms –Industries (from small to sophisticated machines) –Electrics –Machines –Construction (buildings, ports…) –Defence Industries –Iron & Steel, Cement

THC_CTMSS381_April'0819 Engines of Growth(3) India: –What are & what could be –I.T & Software –Pharmaceuticals –R&D ( for other nations) –Highways –Construction (Housing, offices)

THC_CTMSS381_April'0820 What slow down or brake our engines of growth Governments – permit-licence-quota Corruption Welfare before work Competitive populism Personality cult in political parties (proprietarisation) Poor education Poor Nutrition Ignoble leadership

THC_CTMSS381_April'0821 Post-USSR engines for Development (1) Winding down government /state capitalism Liberalisation, privatisation & competition (eg: telecoms/ air travel, personal finance, automobiles)

THC_CTMSS381_April'0822 Post-USSR engines for Development (2) Flow of capital/enterprises PPP- projects Privatisation of Higher Education (Talent creating A P, TN, KN, MH) and now all stages of education. Competition between PSUs & privates

THC_CTMSS381_April'0823 Affordability of Electronic Devices: Ratio of Price of Device to Per Capita Income Radio TV SetNA Year’s Telephone Service PCNA

THC_CTMSS381_April'0824 What we should not do… “You cannot bring about prosperity by discouraging thrift. You cannot strengthen the weak by weakening the strong. You cannot help the poor by destroying the rich. You cannot establish sound security on borrowed money. You cannot keep out trouble by spending more than you earn. You cannot build character and courage by taking away man’s initiative and independence. You cannot help men permanently by doing for them What they could do for themselves.” - Abraham Lincoln (Source: Freedom First, May 1989)

THC_CTMSS381_April'0825 Dhanyawad: Thank You

THC_CTMSS381_April'0826 Subsidies (Central) in crores of Rs. Year ‘06‘07‘08‘09 Total45,95747,52257,12569,74271,431 Of which food 25,79823,07724,01431,54632,667 Education: (Rs. crores) TotalPySyHigh 34,40019,7774,55410,853 Health ,36614,50016,968

THC_CTMSS381_April'0827 Budgets of the Union Government Year Revenue4,34,3875,25,0986,02,935 Capital1,49,0001,84,2751,47,949 Total Income5,83,3877,09,3737,50,884 Non-plan4,13,5275,01,8495,07,498 Plan1,69,8602,07,5242,43,386 Total Expenses 5,83,3877,09,3737,50,884 Rev. Deficit80,22263,48855,184 Fiscal Deficit1,42,5731,43,6531,33,287