SME Times is powered by   
Search News
Just in:   • Adani Group to invest Rs 57,575 crore in Odisha  • 'Dollar Distancing' finally happening? Time for India to pitch Rupee as credible alternative: SBI Ecowrap  • 49% Indian startups now from tier 2, 3 cities: Jitendra Singh  • 'India ranks 3rd in global startup ecosystem & number of unicorns'  • LinkedIn lays off entire global events marketing team: Report 
Last updated: 27 Sep, 2014  

India.Growth.9.Thmb.jpg Better resource allocation can boost India's productivity: World Bank

India.Growth.9.jpg
   Top Stories
» 28 Indian startups raised over $800 mn in funding this week
» GST Council waives interest, penalty on notices to taxpayers under Section 73
» India's innovation ecosystem poised for exponential growth: Industry
» India's innovation ecosystem poised for exponential growth: Industry
» Overseas Indians faith grows in Indian economy with $1 billion deposits in April
Arun Kumar | 08 Oct, 2013
Making resource allocation as efficient in India and China as it is in the US would increase their productivity by as much as 60 percent in India and 50 percent in China, according to a new World Bank report.

"These large gains, however, would also require developing institutions and a business environment that can support a high degree of dynamism in the enterprise sector," says the World Development Report 2014 acknowledging that it's "not an easy task".

"When fuelled by competition, the enterprise sector can promote innovation by adopting new technologies and reallocating resources" through a process of "creative destruction", it says.

"Improving this dynamic process can have significant effects both on reducing the risk of prolonged recessions and on increasing aggregate productivity," adds the report titled 'Risk and Opportunity: Managing Risk for Development'.

In the face of social unrest, economic crises and more frequent natural disasters, preparation and recovery efforts by governments, communities and individuals have become increasingly essential, says the report.

"Effective risk management can provide both resilience to withstand adverse events and the ability to take advantage of development opportunities," it says calling it "a critical ingredient in the fight to end poverty".

Citing the example of the Indian financial capital of Mumbai, the report says "individuals and societies fail to tackle risk proactively for a variety of reasons, including lack of resources and information, missing markets and public goods, and even social exclusion".

"The drainage system in the Indian city of Mumbai, for example, heavily clogged by rubbish and over 100 years old, is hardly able to handle the annual monsoon rains," it noted.

Over the years, multiple proposals to improve the system have been put forth, but the city has yet to fully adopt most of them, and Mumbai remains vulnerable to flooding, the report said.

"Effective risk management in cases such as this requires identifying and addressing the obstacles that prevent people, communities, and countries from taking necessary actions," it said.

The state can also contribute to financial inclusion of the poor by providing sound financial infrastructure of institutions that facilitate financial intermediation, including payment systems, credit information bureaux, and collateral registries, the report said.

"To promote financial inclusion, the government can lead by example through innovative practices," it said citing the "interesting case" of "India's National Rural Employment Guarantee Act, which has improved outreach to poor people living in rural areas through the introduction of government-to-person payments using a bank account".

The challenge for public policy, the report said, is to provide the right incentives for people and institutions to do their own planning and preparation, while taking care not to impose risks or losses on others.
 
Print the Page Add to Favorite
 
Share this on :
 

Please comment on this story:
 
Subject :
Message:
(Maximum 1500 characters)  Characters left 1500
Your name:
 

 
  Customs Exchange Rates
Currency Import Export
US Dollar
66.20
64.50
UK Pound
87.50
84.65
Euro
78.25
75.65
Japanese Yen 58.85 56.85
As on 13 Aug, 2022
  Daily Poll
Will the Budget 2024 be MSME friendly
 Yes
 No
 Can't say
  Commented Stories
» GIC Re's revenue from obligatory cession threatened(1)
 
 
About Us  |   Advertise with Us  
  Useful Links  |   Terms and Conditions  |   Disclaimer  |   Contact Us  
Follow Us : Facebook Twitter