The Unassuming Economist

From a paper by Claudio Borio:

“From its tentative beginnings, inflation targeting has spread to become the de facto global monetary standard. Historically, only the Gold Standard has had a longer lifespan. Inflation targeting has done its job: helping to hardwire a low-inflation regime, even in the face of the post-Covid inflation surge. But the journey has been far from easy. Inflation targeting had to contend with the rise of financial instability, most spectacularly in the form of the Great Financial Crisis. In the wake of that crisis, it struggled to push inflation back up to point targets, and it saw a historical erosion in the room for policy manoeuvre. This paper assesses these challenges and considers possible adjustments to the framework. These include more systematic consideration of the longer-term damage that financial factors can cause to the economy and of the importance of safety margins in the conduct of policy. And all this should be grounded on a clear recognition of what monetary policy can and cannot deliver.”

From a Keynote address by Mr Swaminathan J:

“Regional Director for Mumbai Regional Office, Shri Suman Ray; Regional Director for Nagpur Regional Office, Shri Sachin Shende; Chief General Manager, National Bank for Agriculture and Rural Development, Ms. Rashmi Darad; General Manager, Bank of Maharashtra and Convenor, SLBC Maharashtra, Shri R D Deshmukh; senior executives from banks, Lead District Managers (LDMs), Lead District Officers (LDOs) and my colleagues from Reserve Bank of India, present here.

Good morning, it is my proud privilege today to be addressing this Conference for Lead District Managers of Maharashtra.

Being here near Nagpur and that, too, for a Conference of the LDMs, it would be amiss of me if I am not reminded of Shri Baba Amte, whose Ashram is within a few kilometres. As you all would be aware he was one of the proponents of rural economy-driven growth. There is this one part of a quote attributed to him, which says, “A balanced economic system is one which provides sufficiency for all and superfluity for some-“

When you parse the quote, you will realise that the LDMs are facilitating the sufficiency of the rural economy. And balancing the economy by facilitating sufficiency for the rural economy rings as much true today as it must have been when it was said. When you look at the results of the Economic Survey, 2023-24, it is observed that Indian agriculture sector provides livelihood support to about 42.3 per cent of the population and has a share of 18.2 per cent in the country’s GDP at current prices.

So, with the rural economy thriving, the role of Lead Banks assumes a renewed emphasis. In fact, the aspirational goals that RBI has set for RBI@100 in a Multi-Year Time Frame, reiterates its focus on ‘Accessibility, Availability and Quality of financial services to all sections of the society’.

It is this underlying principle that had conceptualised the Lead Bank Scheme (LBS) in 1969. The Lead Bank is expected to assume a leadership role for coordinating the efforts of the credit institutions and the Government. And within this leadership role, the role of LDMs cannot be overstated.

As key pillars of the LBS framework, you hold the responsibility of extending banking services and credit to underserved regions, facilitating economic advancement, the results of which can be personally fulfilling. Having served as the Convenor of the SLBC in Telangana, I can attest to the deep satisfaction derived from the tangible impact created through LBS fora.

Over the years, the roles and responsibilities of the LDMs have evolved. But the underpinnings of these myriad objectives remain the same. Today I would like to highlight certain expectations that we have from the functioning of the LDMs. For easy recallability, I have attempted to give a different spin to the acronym – LDM – and identified three attributes viz., (L)iaison, (D)esigning and Development, and (M)onitoring and Motivating. I will now elaborate upon these.”

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From the State Council of China:

“nding poverty has long been a major challenge for humanity since ancient times. Today, the world still has more than one billion people living in extreme poverty. In the global war on extreme impoverishment, China has blazed a trail that gives hope to all yearning for a better life.

Being the world’s largest developing country with over 1.4 billion people, China has lifted 800 million out of poverty. It has also met the poverty reduction target of the UN 2030 Agenda for Sustainable Development well ahead of schedule. UN Secretary-General Antonio Guterres lauded China’s achievement as “the greatest anti-poverty achievement in history.”

Centering on “targeted poverty alleviation,” China’s poverty reduction strategy blends rapid economic growth with tangible improvements in well-being. By tailoring solutions to local conditions, it ensures that anti-poverty measures address the specific needs of communities.

This approach has transformed some of the country’s most impoverished regions and offered useful inspiration for other nations grappling with similar challenges.

One example is the introduction of Juncao technology, which has had a transformative impact in countries like Rwanda. Developed as a sustainable method for growing mushrooms using grass, Juncao technology exemplifies China’s ability to provide practical, scalable solutions for global challenges.

In Rwanda, Juncao technology has empowered rural farmers by enabling them to cultivate mushrooms with minimal resources. This has not only diversified income sources for many households but also contributed to food security and environmental sustainability.

Across Africa, Juncao has been adopted in more than 40 countries, improving food security and advancing sustainable farming practices.

China’s contributions to global poverty alleviation extend beyond agricultural innovations. Through initiatives like the Belt and Road Initiative (BRI), China has worked with developing countries worldwide to develop projects in infrastructure, education and healthcare sectors. These projects create jobs, improve connectivity, and foster inclusive growth, helping lift millions out of poverty.

So far, China has provided development aid to over 160 countries, pursued high-quality BRI partnerships with over 150 countries, and backed more than 1,100 projects with about 20 billion U.S. dollars in development funding, injecting vital resources into the economic revitalization of the Global South.

China’s contributions to global poverty alleviation also go beyond financial and technical aid. By strengthening the self-development capacities of developing nations, it has fostered a greater and more sustainable global poverty reduction effort.

To date, China has trained over 400,000 professionals from over 180 countries and regions, boosting their capacity in poverty alleviation and development.

At the recently concluded G20 summit in Rio de Janeiro, Chinese President Xi Jinping outlined China’s eight actions for global development, which include pursuing high-quality Belt and Road cooperation, implementing the Global Development Initiative, supporting development in Africa, and supporting international cooperation on poverty reduction and food security.

Also at the summit, Xi announced China’s decision to join the Global Alliance Against Hunger and Poverty, an initiative designed to raise resources and knowledge to implement proven public policies and social technologies to combat hunger and poverty worldwide.

These actions represent China’s latest commitment to common prosperity and shared development, proving that China will always be a reliable long-term partner of developing countries, and a doer and go-getter working for global development.

Meanwhile, starting Dec. 1, China offers zero-tariff treatment for 100 percent tariff lines to all the least developed countries having diplomatic relations with China. This measure, combined with China’s ongoing efforts to enhance South-South cooperation, underscores its resolve to address systemic inequities in global trade and economic development.

By providing tariff-free access to its vast market, China aims to empower the least developed countries to expand their export capabilities, generate income, and reduce reliance on external aid.

As the world faces mounting challenges such as climate change and economic inequality, China’s poverty alleviation efforts offer valuable lessons. Its model underscores the potential of innovative, localized solutions and international cooperation in building a more equitable and prosperous future for all.”

From McKinsey:

“Our newest McKinsey Global Institute (MGI) report, The next big arenas of competition, tells the story of “wizard” industries that grow at fantastic rates, spawn giants, and even shape-shift. We call them “arenas of competition,” and in the past 20 years, they have come to permeate the global economy.

“If I wind back the clock to 2005, the top ten titans of industry were oil companies, retailers, pharmaceuticals…and one software company, Microsoft. The average market cap was $250 billion,” recalls Chris Bradley, a McKinsey senior partner and MGI director. “Today, nine out of the top ten have been replaced by companies that are giant—eight times bigger in value—at 1.9 trillion, and almost all are driven by new technologies and business models. Under our noses, there’s been this radical shift in the industrial landscape, and we wanted to understand why and what it looked like.”

The report identifies 12 thriving arenas that began in 2005 and previews 18 that we think could shape the future. Here, four authors, Chris; Kweilin Ellingrud, a McKinsey senior partner and MGI director; Kevin Russell, an MGI senior fellow; and Suhayl Chettih, an engagement manager, share insights from the research.”

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From mint:

“There is a strong business case for inclusive leadership. Research carried out by BCG points out that inclusive leaders cut down employee attrition risk by as much as 76 per cent. Reports over the years have also correlated diverse leadership teams to not only a boost in morale, productivity, psychological safety, and belonging which results in talent retention, but also a significant improvement in financial performance.

While year-on-year business growth remains critical, McKinsey’s latest study also highlights how organisations today are keen on driving holistic impact. This values the interests and needs of all stakeholders – employees, customers and investors. Moreover, with GenZ entering the workforce, prioritising ESG goals, and a shift towards sustainable, inclusive growth become part of this changing picture.”

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