Syllabus Section: GS II (SOCIAL ISSUES)
Why in News?
- Recently, a new working paper published by the Asian Development Bank (ADB) reckoned that the Gross Domestic Product (GDP) of India will see the highest decline in South Asia.
- The paper names ‘Potential Economic Impact of COVID19 related School Closures.
- Effect on Overall Economy: The country’s economy could take a nearly $99 billion hit by 2030.
- India’s economy will face a dent of $10.5 billion in 2023,
- Effect on GDP: India will face a 3.19% reduction in GDP from the baseline growth trends,
- India may account for over 10% of the global GDP decline of $943 billion on account of earnings losses in 2030.
- In terms of absolute change, India experiences the highest GDP decline in South Asia, at $98.84 billion in 2030.
- In percentage terms, its GDP decreases by 0.34% in 2023, 1.36% in 2026, and 3.19% in 2030,”
- Declines in global GDP amount to 0.19% in 2024, 0.64% in 2028, and 1.11% in 2030.
- Effect on Jobs: Jobs for skilled labour are expected to decline by 1%, and unskilled labour by 2% that year.
- Effect on Education:
- India has notable enrolment in secondary education and among students in rural areas.
- Pandemic induced school closures have also been more extensive there
- Economies having a significant population of school children and collegegoers in rural areas and in the poorest and second wealth quintile have been the worst hit, because of the lack of access to stable Internet connection needed to study online.
Possible Impacts of Effects on Education:
- Migration towards unskilled Labour Force: Learning and earning losses have been significant because a notable portion of the impacted population will migrate to the unskilled labour force.
- As per the ADB paper’s estimates, a large part of India’s workforce is constituted by unskilled labour — 408.4 million compared to 72.65 million skilled workers.
- School closures lead to declines in global GDP and employment. Moreover, the losses in the global GDP and employment increase over time.
Asian Development Bank:
· Asian Development Bank is a regional development bank which was established in 1966.
· It has now 68 members, 49 from within Asia and the Pacific and 19 outside. India is a founding member.
· It aims to promote social and economic development in Asia and the Pacific
· Who can be the Member?
Ø The bank admits the members of the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP, formerly the Economic Commission for Asia and the Far East or ECAFE) and non-regional developed countries.
· Voting Rights are modelling closely on the World Bank and have a similar weight voting system where votes were distribute in proportion to members’ capital subscriptions.
· ADB’s five largest shareholders are Japan and the United States (each with 15.6% of total shares), the People’s Republic of China (6.4%), India (6.3%), and Australia (5.8%).
· It is headquartered in Manila, Philippines.
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Source: The Hindu