India is all set to join the 13-member group of ’miracle economies’ that have recorded higher growth in a short span of time, says a UK-based think tank.
In addition to India, Vietnam will also be joining the club of these fast-growing economies, which among others include Japan, Singapore and South Korea, the Commission on Growth and Development said.
The other members of the miracle economies include Botswana, Brazil, China, Hong Kong (China), Indonesia, Malaysia, Malta, Oman, Taiwan (China) and Thailand, the Commission, which is sponsored by World Bank and governments of Australia, the Netherlands and the UK, said.
Indian growth story has characteristics as the miracle economies, the report said.
The miracle economies, it added, shared common characteristics as they are all engaged with the global Economy, had high rates of saving and investment, and credible and capable governments.The Commission, which is headed by Nobel laureate Michael Spence, has Planning Commission deputy chairman Montek Singh Ahluwalia as one of the members. It said India’s multi-party democracy has grown remarkably due to a pragmatic and impartial growth strategy and also the role of government has shifted from dismantling the excesses of the license raj to putting in more endeavours for improving the public infrastructure.
India has been a hub of world-class engineers and scientists for decades and is supplying to global demand for software services. This has helped the country in fulfilling its economic growth need, the think-tank said. Pointing out that India’s civil servant performance has shown an exemplary improvement based on business quality standards formulated by the International Organisation for Standardisation, the Commission said it has significantly contributed to effective governance. It observed that all the miracle economies grew remarkably by importing ideas, technology, and knowhow from the rest of the world and exploiting global demand.
"The inflow of knowledge dramatically increased the Economy’s productive potential; the global market provided the demand necessary to fulfil it. To put it very simply, they imported what the rest of the world knew, and exported what it wanted," the Commission said in its report. All these economies were future-oriented and relied on a functioning market system and decentralised decision-making, promoting entrepreneurial spirit, it added.
Also, the report said, mobility of resources like labour and capital was a prominent feature of all the 13 high-growth economies.
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