Jeffrey Sachs on India

6:30 PM, August 8th, 2007: The Indian School of Business played host to the greatest economist of this generation, Mr. Jeffrey Sachs, Director, Earth Institute, Columbia University. Jeffrey needs no introduction to the ISB students. Prof. Krishnakumar from Rand Corporation taught us Global Economics in term 2 and he extensively used videos featuring Jeffrey solving hyper-inflation and extreme poverty in third world countries. After a raunching introduction by Rajat Gupta, Jeffrey walked up the stage to talk about 'Climate change and Sustained development in India'. He started out talking about the three major phases of economic development in India since independence, the 1947 to mid 1960s perios when essential PSUs were set up, the mid 1960s to 1980s when Green Revolution and infrastructure development happened and finally the 1990s onwards opening up of the economy and the rapid growth. Prof. Sachs feels that any country has to do two three things(in that order) to achieve sustainable growth.

i) End extreme poverty
ii) Achieve rapid growth
iii) Create a framework for sustained growth

And all of these have to be done consistent with our environment. Sadly, India has achieved the second step, achieving rapid growth, but has failed very badly on the first and third step. The high incidence of stunted growth in children(malnutrition), maternal and infant mortality is proof for that. In spite of great advances in the technology & infrastructure sectors the spending on primary health is among the least in the word (Some thing like $10 per head compared to $3000 in US). To add to this India is a coal based energy producer which contributes to a lot of carbon addition, a major greenhouse gas. The need of the day is to have public-private partnerships to uplift the poorest of poor in India and improve the primary health care system. he particularly lauded the efforts of the Satyam group which was setting up mobile public health clinics using a public-private partnership model. Prof. Sachs likes the fact that anything if decided happens very fast in India and he wants our country to target achieving this by 2015. After conquering this major challenge starts the gargantuan task of achieving sustained growth in an environmentally friendly way. He strongly encouraged carbon sequestering and use of nuclear and solar energy to a greater extent. Then followed audience questions. He stunned everybody with his knowledege about India. I felt that he was not just an economist. He is a technologist, environmental activist, public planner and visionary all packed into one wiry body. It was indeed a privilege to listen to such a great legend from such close quarters. Three cheers to ISB.