Businesses in emerging economies should learn from the mistakes of the West and push for social equality and inclusive growth, not just economic growth, according to B. Muthuraman, Vice-Chairman, Tata Steel.
Addressing the annual convention of the Madras Management Association, he said the last century marks the end of unbridled consumption and exploitation of natural resources by the developed economies.
Emerging economies such as India and China, with nearly half the world’s population, will have to look at growth in the backdrop of constraints in natural resources and increasing costs.
In the last couple of decades, India’s economic growth has been impressive but challenges remain on the social front. Quality of education, healthcare, corruption and lack of equal opportunity needs to be addressed.
Businesses need to embrace social aspects of development as an integral part of their business processes. They need to play a leadership role and take care of society, Muthuraman said.
Alok Kshirsagar, Director (Senior Partner), McKinsey, said growth of emerging markets, urbanisation, a growing middle class, agricultural productivity, increasing infrastructure spends, workforce productivity and technology development are some of the key areas globally that offer opportunity for companies.
Keywords: B. Muthuraman, social equality, inclusive growth, Madras Management Association, natural resources, emerging markets, urbanisation
Comments:
Mr.Muthuraman is absolutely spot on that businesses in emerging economies should learn from the mistakes of the West and push for social equality and inclusive growth, not just economic growth. It is an unfortunate fact that the economic planning decision making is dominated by economists whose narrow focus is centered on growth which means GDP. Overly concentrating on growth, the overall wellbeing of the people has become the causality. Growth as measured by GDP as promoted today does not promote happiness. Consumerism is the engine of this growth and greed is its driving force, a greedy person for ever wants to consume. To break this vicious cycle it is essential to push for inclusive growth, economic planners taking into consideration the role of other social sciences play in their decisions, factoring essentially the impact their decision on human welfare, ecology etc.
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