Are We Prepared To Promote Inclusion Or Risk Growth?

In these columns, I have pointed out often that the pursuit of long-term growth necessarily involves focusing resources on infrastructure, better service delivery, rule of law, an investment-friendly climate, and enhancement of human capacity and productivity. However, democratic politics demands willing consent of the people to govern. Therefore, it is always tempting and easy to offer instant, transient benefits like cash transfers, free water, electricity and transport, and other bonanzas to maximise the short-term gain to the voter. But the first rule of economics is that resources are always limited, and needs are many. Prudent public financial management always involves trade-offs. Short-term appeasement of voters is inevitably at the cost of long-term growth and productivity. Not su