Globalization and the Millennium Development Goals

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1 Globalization and the Millennium Development Goals Negotiating the Challenge Edited by Manmohan Agarwal and Amit Shovon Ray Social Science Press NEW DELHI

2 Contents Preface and Acknowledgements List of Contributors Introductory Remarks: Why India will fail to meet the Millennium Development Goals Meghnad Desai xi xiii xv SECTION I: GLOBALIZATION AND THE MILLENNIUM DEVELOPMENT GOALS 1. Globalization and the Millennium Development Goals: Negotiating the Challenge 3 Manmohan Agarwal and Amit Shovon Ray 1.1 Role of the Government in Economic Development: Changing Perceptions Development Strategies Effect of Globalization on Economic Growth Beyond Growth: Rethinking the Objectives of Development Globalization, Poverty and Income Distribution The Present Volume Africa: Growth and Social Progress 27 Manmohan Agarwal and Prabhu Prasad Mishra 2.1 Economic Performance and Structure Model Specification and Estimation 38

3 vi Contents 2.3 Prospects for Improved Growth Performance Africa and International Economic Institutions Developing an African Growth Plan 48 Ross Herbert SECTION II: ECONOMIC AND SOCIAL CONSEQUENCES OF GLOBALIZATION 4. World Economic Performance and Social Progress 61 Manmohan Agarwal 4.1 Macroeconomic Performance of the World Economy Social Progress Construction of an Aggregate Human Development Index Results Agricultural Trade Liberalization in India: A Critical Review 90 G.S. Bhalla 5.1 Economic Reforms, Trade Liberalization and Indian Agriculture Impact of Liberalization and Trade Reforms on Indian Agriculture Conclusion Globalization and Informal Sector Employment: The Case of India's Unorganized Manufacturing 113 G.K. Chadha 6.1 Introduction Data and Concepts Structure of Unorganized Manufacturing Employment Recent Employment Setbacks in the Indian Economy Employment in Unorganized Manufacturing Conclusion Globalization and Auto Component SMEs in India 147 Neelam Singh 7.1 Introduction Policy Framework Auto Industry: Structure and Major Developments 152

4 Contents 7.4 SMEs in the Automotive Sector Capability Building Concluding Remarks and Recommendations 169 SECTION III: HEALTH 8. Access to New Drugs in India: Implications of TRIPS 175 Amit Shovon Ray and Manashi Chakravorty 8.1 New Drug Discovery: Innovativeness, Therapeutic Focus and Delay in Launch Launch of New Drugs in India: An Empirical Analysis Synthesis and Conclusion Treating AIDS: Intellectual Property, Generic Production and the Challenge of Stable Supply 190 Kem Shadlen 9.1. Importance of Price Stability IP and Access Beyond Legalism: TRIPS, India's Patent Act and the Future of Generic Supply Overcoming the Challenges to Stabilizing Supply Conclusion Reproductive Health and the MDGs: Rhetoric and Reality 215 Ernestina Coast 10.1 Population World Conferences What are SRHR? From ICPD to MDG SRHR and the 2005 World Summit 227 SECTION IV: EDUCATION 11. What is Universal Primary Education? Literacy, Citizenship and Critical Thinking 235 Eva-Maria Nag 11.1 Values Behind the Commitment to Universal Primary Education What Kind of Literacy? State of the World: Deep Diversity Critical Thinking and Education Concluding Remarks 250 vii

5 viii Contents 12. Market-Driven Higher Education 253 AM Rai 12.1 Marketization of Higher Education Humanities versus'knowledge' Social Costs of 'Bad' Education Market as a Diagnostic Tool Conclusion 259 LIST OF TABLES 2.1a: GDP by PPP in b: GDP in : GDP per capita Growth : Export Growth : Exports as a percentage of GDP : Industrial Value Added : Agricultural Value Added : Government Consumption Expenditure : Gross Fixed Capital Formation : Actual and Predicted Growth Rates : Average Annual Growth of PCY : Annual Increase in GDP Deflator : Gross Fixed Capital Formation : Incremental Output-Capital Ratios : External Balance on Goods and Services a: Aid Flows b: Gross Private Capital Flows c: Aid as a Percentage of Private Capital Flows : Gross Foreign Direct Investment : Exports of Goods and Services a: Share of LDC in World Exports b: Share of LDC in Exports of LDCs : Proportion of Population in Poverty, : Prevalence of Undernourishment : Prevalence of Malnutrition : Enrolment Ratio : Primary Completion Ratio : Literacy Ratios : Gender Equality : Mortality Rates 80

6 Contents 4.18: MDI for : MDI for : Welfare Gains to Developing Countries from Removing Barriers to Trade in Goods : Growth Rates of GDP and per capita Income : Area Production and Yield of Major Crops : Agricultural Exports and Imports and their Share in Total Exports and Imports : World Trade in Agricultural Products, : Growth of Workers UPSS, to : Number Unemployed and the Incidence of Unemployment, to : Index of TOT between Agriculture and Non-agriculture : Income TOT for Agriculture : Percentage of People below Poverty Line, : Poverty among All Rural Persons and Farmers : Structure of Manufacturing Sector in India, / : Structure of Unorganized Manufacturing Sector in India, / : Annual Compound Growth Rate of Employment for Usual Status (Principal+Subsidiary) Workers by Residence and Production Sectors, 1983/ : Growth of Employment in Unorganized Manufacturing by Rural-Urban Location and Production Sectors, / : Number of Units and Workers in Unorganized Manufacturing Sector, / : Growth Rates of Unorganized Agro-Manufacturing Enterprises, Employment and Productivity/Worker, / : Exports, Imports and Production of Auto Components : Foreign Collaborations for Auto Components : Auto Components Falling under the Early Harvest Scheme of India-Thai FTA : India's Auto Component Exports and Imports in Selected Countries : Innovativeness and Therapeutic Focus of New Drugs Globally Launched during : Year-wise Details of Drug Launch : Innovativeness and Launch in India 183 ix

7 x Contents 8.4: Therapeutic Focus and Launch in India : Innovativeness and Therapeutic Focus of New Drugs Launched in India : Delays (Lags) in Drug Launch : Delays (Lags) in Drug Launch over Time : Competition in the Year of Launch of New Drugs in India : Comparing Prices and Costs of Various Types Generic Drugs : Statements in World Conferences : SRH Indicators and Goals : SRHR-related Statements included in the 2005 World Summit Outcome : SRHR-related Statements included in the 2005 United Nations World Summit Outcome (A/60/L. 1) 228 LIST OF FIGURES 5.1: Growth Rate of Yield : Growth Rate of Output : Agricultural Exports and Imports : Barter Terms of Trade DES & GDP Deflator : Income TOT for Agriculture 107

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