Among all major economies, “India has the highest potential growth rate right now,” said A Michael Spence, who was awarded the economics Nobel in 2001. India has “successfully developed by far the best digital economy and finance architecture in the world that’s open, competitive and delivers services of an inclusive kind to a vast array of territory,” he added.
Addressing students and faculty at Bennett University, Spence pointed out that the world is experiencing a “kind of regime change in the global economy”.Tracing evolution of the global economy after World War II, he said the 70-year-old system is breaking down due to pandemics, geopolitical tensions and climate shocks, among other factors.
Spence pointed out that the global system was built on economic criteria like efficent supply systems and comparative advantage considerations, but is undergoing a rapid transition. “In a shock-prone world, it doesn’t make sense to have single sourcing,” he said. With the centre of gravity shifting steadily east, there is a fundamental change with supply chains getting diversified and global governance becoming more complicated than ever before, he emphasised.
Despite the challenging times, he said there is cause for optimism in the affirmative answer to the question – ‘do we have counter measures to enhance human welfare’? Enormous progress achieved in science & tech can contribute to enhanced human welfare, he said, citing generative AI, revolutions in biomedical life sciences and massive energy transitions. He cited the example of cost of DNA sequencing reducing from $10 million earlier to $250 now. However, he cautioned that this technological growth should be available to both big and small business alike.
“We now have incredibly powerful scientific and technological tools, that, if we use correctly, can be used to deliver well-being and opportunity to a wide range of people”, said Spence, who was awarded the Nobel for his analysis of markets with asymmetric information.
Institute for New Economic Thinking chairman Rohinton Medhora and INET president Rob Johnson also spoke. Medhora emphasised the need for governance of technology-led economic growth and observed that there is room for ethos, ethics and education systems, where universities can play a major role. Johnson spoke about the unique growth model adopted by India and how that can be replicated by other developing countries.
Addressing students and faculty at Bennett University, Spence pointed out that the world is experiencing a “kind of regime change in the global economy”.Tracing evolution of the global economy after World War II, he said the 70-year-old system is breaking down due to pandemics, geopolitical tensions and climate shocks, among other factors.
Spence pointed out that the global system was built on economic criteria like efficent supply systems and comparative advantage considerations, but is undergoing a rapid transition. “In a shock-prone world, it doesn’t make sense to have single sourcing,” he said. With the centre of gravity shifting steadily east, there is a fundamental change with supply chains getting diversified and global governance becoming more complicated than ever before, he emphasised.
Despite the challenging times, he said there is cause for optimism in the affirmative answer to the question – ‘do we have counter measures to enhance human welfare’? Enormous progress achieved in science & tech can contribute to enhanced human welfare, he said, citing generative AI, revolutions in biomedical life sciences and massive energy transitions. He cited the example of cost of DNA sequencing reducing from $10 million earlier to $250 now. However, he cautioned that this technological growth should be available to both big and small business alike.
“We now have incredibly powerful scientific and technological tools, that, if we use correctly, can be used to deliver well-being and opportunity to a wide range of people”, said Spence, who was awarded the Nobel for his analysis of markets with asymmetric information.
Institute for New Economic Thinking chairman Rohinton Medhora and INET president Rob Johnson also spoke. Medhora emphasised the need for governance of technology-led economic growth and observed that there is room for ethos, ethics and education systems, where universities can play a major role. Johnson spoke about the unique growth model adopted by India and how that can be replicated by other developing countries.
