Growth mania can be injurious to society 

The World Economic Forum (WEF) is an international non-governmental organization committed to improving the state of the world by engaging business, political, academic, and other leaders of society to shape global, regional, and industry agendas. 

• Holds an annual meeting in Davos, Switzerland, convening leaders from various sectors to discuss global challenges and opportunities.
• Publishes reports and studies on various economic, social, and environmental issues.
• Initiates and supports projects and initiatives aimed at addressing global challenges.
• Provides a platform for dialogue and collaboration between different stakeholders.

Criticism

• Some criticize the WEF for being elitist and undemocratic, as its membership is primarily composed of powerful individuals and organizations.
• Others argue that the WEF's focus on economic growth often comes at the expense of social justice and environmental sustainability.
• The organization has also faced criticism for its lack of transparency and accountability.

The World Inequality Report 2022, published by the World Inequality Lab, provides a comprehensive analysis of global trends in inequality. 

Key Findings

• The report highlights the rising trend of global inequality, with the top 1% capturing 38% of all additional wealth accumulated since the mid-1990s, while the bottom 50% captured only 2%.
• The report reveals a significant concentration of wealth at the top, with the top 10% owning 76% of global wealth.
• The report finds that women's share of global labour income has only risen from 30% to 35% since 1990, indicating persistent gender inequality.
• While inequality is a global phenomenon, the report also examines variations across countries. For instance, India is cited as a country with high and rising inequality.

Key Features

• The report offers a comprehensive analysis of inequality across different regions and income groups.
• The report relies on extensive data and analysis to support its findings.
• The report concludes with recommendations for policymakers to address inequality, including progressive taxation and wealth redistribution.

Criticisms

• Some argue that the report's focus on wealth inequality neglects other forms of inequality, such as income inequality or access to education and healthcare.
• Others critique the report's methodology and data sources.

• The recent economic growth in India is intricately entwined with a concerning trend of growing inequality.
• This phenomenon is not a recent development; it emerged in the 1980s and gained momentum in the subsequent decades, now standing as an unstoppable force.
• India finds itself among the world's most unequal societies, although precise estimates are challenging due to a lack of forthcoming data from government agencies.
• Leading inequality researchers globally characterize India as "a poor country with an affluent elite," underscoring the severity of the issue (‘World Inequality Report’, 2022).
• The implications of this deepening inequality are ominous. It's not merely the unequal distribution of growth; more disconcertingly, it seems to have little impact on uplifting the income levels of the poorest segments of the population.
• The metaphorical rising tide might not be lifting all boats, pointing to a socio-economic challenge that demands urgent attention.

5. Rural Wage Rates in India

Data Source and Limitations

To gauge the extent of inequality in recent Indian growth, a simple examination of rural wage rates, drawn from the Labour Bureau, provides valuable insights. Unlike survey responses, these rates are based on actual market quotations, offering a more tangible reflection of living conditions at the lower economic strata. However, a notable limitation is the absence of data on female workers, historically comprising approximately half of the workforce in certain agricultural activities.

Real Wage Rate Trends

Upon adjusting the data for inflation, the trends in real wage rates reveal nuanced patterns. Agricultural labor experiences a mild increase, growing by 4.6% over the nine years from 2014 to 2022-23. However, this growth is not uniform, with the real wage rate peaking midway through the period and remaining stagnant thereafter. In comparison, the real wage rates of non-agricultural and construction workers are lower at the study period's end.

Distribution of Rural Workforce

Highlighting the significant contribution of rural India to employment, the Sixth Economic Census of India (2013-14) indicates that 51.7% of the employed population resides in rural areas. Among these, 68.9% are non-agricultural workers, underscoring the diversity of occupations.

Inequality and Per Capita Income

For approximately 35% of India's workforce, real wages have not seen growth since 2014, despite overall economic growth. Even for those witnessing an increase in real wage rates, the growth is overshadowed by the surge in per capita income across the entire economy. From 2014 to 2023, real per capita income in India has risen by 37%, while the real wage of agricultural labour has increased by less than 5%. This striking disparity calls attention to the need for comprehensive economic policies that address inequality at its roots.

6. The Significance of Addressing Inequality in India

Social Pathology and Unequal Growth

Inequality in India's economic growth holds notable repercussions for society. Documented evidence reveals that unequal societies often experience severe social pathologies, ranging from violence to diseases and mental health disorders. Even the affluent, in their attempt to safeguard their wealth, resort to building fortified urban enclaves, exemplified by the proliferation of gated communities in India.

Impediment to Collective Action

Inequality obstructs collective action precisely when it is most imperative. By eroding trust between different societal groups, it hampers collaboration on public goods. For instance, consider India's challenge in achieving total sanitation through initiatives like the Swachh Bharat Mission. The varying priorities of the rich and poor concerning public spaces can impede progress. The persistence of open defecation, a reluctance to adopt practices for the greater public good, illustrates how inequality undermines efforts to build critical public goods, including natural capital conservation, waste management, and addressing climate change.

Democratic Values and Economic Outcomes

Beyond its detrimental effects, addressing inequality is fundamental to upholding democratic values. India, as a democracy, should not tolerate such divergent economic outcomes. Historically, economic policies in India have not adequately addressed the profound inequality of opportunity across its population. Prioritizing the maximization of economic size amid an already unequal income distribution is unlikely to bridge the gap, emphasizing the need for a more inclusive and equitable approach to economic growth.

India's economic growth needs to be inclusive and equitable to achieve sustainable progress. Addressing income disparity and its social consequences is crucial for building a more just and prosperous society. This requires a shift in focus from solely maximizing economic size to prioritizing policies that benefit all sections of the population.