Pursue pro-poor policies to promote growth: Rangarajan

Hyderabad: In a significant observation, Prime Minister’s Economic Advisory Council, Chairman C Rangarajan said, economic growth and social development are inseparable. And, there is no conflict between economic growth and social development.

Delivering a foundation lecture at CESS here on ‘Economic Growth and Development – Synergic and Contradictory’ here, Rangarajan said, “The society cannot wait for growth to reach a certain level before looking for improvement in socio economic indicators. At the same time, at very low levels of per capita income, distribution by itself is not solution.”

The government needs to providing health, education and sanitation, the factors of social infrastructure, only by strengthening growth in the long run. And to achieve this element of growth which supports the social development, it requires motivational force as part of development process.

"The pro-poor policies are necessary as they are to widen the opportunities and capabilities of the poor, must be so fashioned as to promote growth in the long run. They should include not only income transfers, which by their nature have to be limited, but also flow of investment to sectors and areas where poor work and live. Rural development including agriculture growth thus assumes major importance.

He also suggested that the delivery channel need not necessarily be through government administrative mechanism. And it can be through PPP model.

"Public-private partnerships in the delivery of these services need to be explored. While taking the advantage of superior administrative efficiency of private institutions, the larger public goals should not be scarified. Public- private partnership mode of delivery can thus supplement the direct delivery of services through government institutions," he added.