Why in news?
IMF released Fiscal Monitor in terms of tackling inequality.
What is IMF?
- The International Monetary Fund (IMF) is an international organization headquartered in Washington, D.C.
- It is an organization of 189 countries working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.
- It now plays a central role in the management of balance of payments difficulties and international financial crises.
- Countries contribute funds to a pool through a quota system from which countries experiencing balance of payments problems can borrow money.
What is the recent release discusses about?
- The Fiscal Monitor observes that inclusive growth is receiving attention because of rising inequalities and slowing economic growth.
- Further, excessive inequality can erode “social cohesion, lead to political polarization, and ultimately lower economic growth”.
- It states that in general, inequality of opportunity is higher in emerging countries.
- It also recommends Public policies on education, can help address this inequality which can lead to enhancing human capital and productivity.
What is the status of Inequality in Indian workforce?
- India is pursuing an important priority, namely, to find jobs for the 12 million people entering the workforce annually.
- This is a challenge, as there are already nearly 800 million people below the age of 34 years, who also need to be productively engaged in education and employability.
- In India inequality of opportunity is higher in workforce, where North-Eastern population is most affected as unemployment, and there poverty rates are generally higher than that of All-India.
- In emerging economies, as well as advanced countries, female participation is significantly higher than that of India.
- In India attendance ratios dropped sharply from primary to secondary education and inequality in access to education is large.
- Nearly 60 per cent of employers had reported difficulties in recruitment because of talent shortages.
What measures needs to be taken?
- Union Government had earlier mooted the idea of Second Green Revolution in the North-East to usher prosperity and achieve better integration with rest of country.
- Union government has launched special schemes like Ishan Uday and Ishan Vikas to encourage undergraduate students.
- Along with this government could also consider region-based reservation in employment in government educational institutions and public sector enterprises.
- It would be useful to consider having more women through gender-based reservations in educational and vocational institutions, and in work places.
Quick Fact
Union government’s education initiatives for North-East
- Union government is making efforts in spreading quality education in north-eastern states by opening institutions of excellence like AIIMS, IIT’s and IIM’s.
- Ishan Uday - It is a special scholarship scheme by UGC, Ministry of Human Resource Development, and Government of India.
- It has a provision to grant 10,000 scholarships to students from the Northeast, whose parental income is below Rs 4.5 lakh per annum.
- The scholarship ranges from Rs 3,500 to 5,000 per month for studying at undergraduate level in colleges and universities in India.
- Ishan Vikas -Visit of Class IX and Class XI students to 22 premier institutes [IITs, NITs and Indian Institutes of Science Education and Research(IISERs)] with two groups in summer and one group in winter, consisting of 32 students
- Each group of 32 can be formed by taking 4 students from one single school ineach of the eight North East states. Each school will send one teacher to accompany thestudents of that school,
- Summer Internship for Engineering College students of the North-East for a duration ofseven weeks at the Premier Institutes like IITs, NITs and IISERs.
Source: Business Line
