Page 12 - CII Artha Magazine

Domestic Trends

For one, rising inflation across Engagement Group of G-20 gap would be premature at effective in emerging and Hence, India and the other are among the foremost areas namely (i) Supporting framework to align economic
the globe, associated with the which has reported that this stage considering that frontier markets where public G20 members should work agenda items of India at the MSMEs, (ii) Infrastructure growth with development The
recent geopolitical situation, is several nations of the Global economic slowdown has resources and donor funds towards catalysing sustainable G20. Recognising this, the Task focus, (iii) Health priorities which in turn would
putting pressure on South are likely to fall short impacted revenue generation are limited. For example, a finance to meet the climate Force of the B-20, an infrastructure, (iv) Technology help build a coordinated
households, industry, and of their 2030 sustainable capabilities of nations. hugely successful healthcare targets, food security and the engagement group of G-20, advancement, (v) Climate response for sustainable
governments and constraining development goals (SDGs) on Moreover, the spending blended financing entity called broader SDG goals. Similarly, has been set up, under India’s financing, and (vi) Sustainable economic recovery. Employment
resource availability. account of the funding crunch. priorities to tackle the health Sustainable Access to Markets G-20 countries could also Presidency, which is focused Energy.
In fact, the funds constraint and social emergencies of the and Resources for Innovative work towards drawing up a on “Financing for Global [Note: Mr Kotak is the Chair of the
Second, the monetary could stymie investment pandemic has further limited Delivery of Healthcare common framework for Economic Recovery’. The Task India and the other G20 B20 Taskforce on ‘Financing for Global
tightening measures and the the fiscal space. This in turn (Samridh), involved in aligning SDG finance with a force would suggest the ways members have the potential Economic Recovery’]
high interest rates in the leaves governments with even strengthening India’s health set of guidelines, policies and and means of addressing the to play a pivotal role in Challenge
developed countries are fewer fiscal resources for systems, has impacted 25 tools as well as establishing gaps in financing and suggest catalysing sustainable finance
forcing Central banks even in meeting the SDGs. Hence million people since 2020 and common standards and rules new and innovative financing to meet the broader SDG
the emerging economies to there is a need to put in place has deployed over US$16 that can support inclusive and techniques for SDGs. The Task goals. It is hoped that the
pull their monetary policy innovative financial million in philanthropic funds sustainable growth. Force has identified its B-20 Group would come out
levers and raise interest rates instruments which would to over 60 social enterprises priorities for making with specific
to stem capital outflows. This fund sustainable development through both grant and debt Fostering financial inclusion recommendations on SDGs recommendations and
is raising borrowing costs needs. financing provisions. Similarly, and financing global recovery financing across six broad provide a comprehensive that the overall employment
thereby limiting the funding especially in sectors like blended finance could also be T o achieve equitable in India increased by a healthy
economic growth and to
options for inclusive growth. infrastructure -both physical The role of multilateral instrumental in bringing broaden consumption 86 million in the five-year 76 per cent (19 million) of of the pandemic has
accentuated the rise in casual
the increase of 25 million
and social- which is one of institutions, including innovative solutions to demand, adequate job period between 2017-18 and addition to jobs coming from jobs.
Third, countries are finding the main drivers of multilateral development finance global challenges such opportunities for those who 2021-22, translating into casual jobs. Construction
themselves in a very difficult sustainable growth in the banks, is vital for addressing as climate change and green choose to work is critical. It is employed people to working sector which traditionally is The below schematic diagram
situation due to capital flight emerging markets after the the funding gaps and transition. Such examples also important for meeting age population ratio rising known to employ bulk of the captures the labour market
from 47 per cent to 53 per
from their countries as COVID-19 crisis. Similarly, complementing efforts of could also be emulated by the aspirations of India’s cent in the comparable casual workers in the dynamics in India, with the
foreign fund managers and sectors such as MSMEs and national governments other countries. Emphasis youth and for inclusive period. To estimate the above economy continued to first diagram capturing the
development.
investors are exiting from small businesses are also towards financing green and should be given to capacity numbers, only working age contribute most to this head. absolute employment in
2021-22 and the second one
Additionally, the rise in
emerging markets to reap the impacted by financial inclusive recovery. Multilateral building of domestic financial Employment-unemployment population (15+ years) has MNREGA public works capturing the net change in
dividends from higher interest constraints which are banks may be encouraged to sectors for achieving estimates remain an been considered. programme amidst rural the five-year period of
rates in the advanced preventing them from play a greater role in sustainable development important barometer of the distress during the two years 2017-18 to 2021-22.
countries. This is resulting in expanding their business and providing financing including objectives. health of the Indian economy. The above-mentioned gain in
employment is attributable to
shortage of capital in contributing to economic in alignment with private The government has initiated an increase of 25 million in
resource constrained activity. sector financing or extending Similarly, innovative financing many surveys in the past jobs and 62 million in the self- Labour market dynamics
which provide a snapshot of
emerging economies. technical assistance through models are needed in areas the employment levels in the employed category. Hence,
Under the circumstances, it innovative financing models. such as providing credit to economy, the latest one being essentially, the sharp rise in
Fourth, many low-income and would be a formidable task MSMEs on cost effective the annual PLFS (Period employment numbers was Absolute numbers in 2021-22 Net change five-year period (FY18-FY22)
developing economies are for economies across the terms, developing inclusive Labour Force Survey) since mainly led by a sharp rise in Working age population Working age population
also experiencing high levels world to secure the vast and smart digital 2017-18. The results of the the self-employed category, 865.7 mn 72 mn
with net jobs contributing
of debt due to a resource resources required for green infrastructure, encouraging fifth round of the survey were only 29 per cent in the total
crunch caused by the global investments such as clean sustainable disaster resilient recently released for 2021-22. pie. Labour Force Labour Force
uncertainty and the lingering energy and climate mitigating infrastructure, promoting Now that we have a 478.0 mn 82.7 mn
impact of the pandemic. infrastructure. After all, with investments in renewable and reasonable time series of five The sharp rise in
only seven years left to sustainable energy while years, this article tries to self-employment category is Employed Unemployed Employed Unemployed
The inability to generate achieve Agenda 2030 for Besides, the involvement of moving towards achieving assess the extent of job attributed to increase in 458.0 mn 20 mn 86.5 mn -4.0 mn
requisite resources, especially sustainable development, the private sector is critical as energy security, among others. creation between 2017-18 self-employment in
agriculture to the tune of 42.8
by the low income and stepping up sustainable it has the potential to come and 2021-22. million in the five-year period,
Jobs
Jobs
emerging economies, would finance has become up with innovative financing India’s G20 leadership has translating into a share of Self-employed 202 mn Self-employed 25 mn
62 mn
256 mn
come in the way of putting in imperative to finance an techniques for bridging the come at a critical juncture I. The overall more than 70 per cent to the
place the financial equitable and durable global SDG financing gap. In fact, when the world economy is employment overall increase in
architecture for achieving recovery. bringing in private capital at an inflexion point and is self-employed workers. Regular/Salaried Casual Regular/Salaried Casual
broad-based growth. This is through green and social looking for credible solutions numbers 98 mn 104 mn 5.6 mn 19 mn
also corroborated by a policy Relying on the governments financial instruments such as to achieve sustainable growth. With regard to pattern of job Source: Various rounds of PLFS and CII Research
creation, the trend clearly
brief by the Think 20 alone for bridging the funding blended finance can be very
Our estimates using the shifted in favour of casual jobs
annual PLFS survey shows during this period, with nearly
12 ANALYSIS, RESEARCH, THOUGHT LEADERSHIP & ADVOCACY ANALYSIS, RESEARCH, THOUGHT LEADERSHIP & ADVOCACY 13
QUARTERLY JOURNAL OF ECONOMICS
QUARTERLY JOURNAL OF ECONOMICS
MAY 2023 MAY 2023