The digital economy is experiencing rapid growth and has become a significant part of the global economy. According to recent reports, the digital economy’s market size is substantial:

• E-commerce Sales: Business e-commerce sales grew nearly 60% from 2016 to 2022, reaching approximately $27 trillion.
• IT Services Sector: The information technology (IT) services sector, including tech consulting and software development, grew twice as fast as the rest of the economy, creating jobs at six times the rate of the global economy.
• Global Impact: The digital economy’s impact is evident in various sectors, including communications, business, health, education, and finance.

These figures highlight the digital economy’s significant role in driving global innovation and economic growth

1. Enhanced Connectivity

The digital economy breaks down geographical barriers, connecting businesses, consumers, and markets worldwide. Through the internet and digital platforms, even small enterprises can reach a global audience, facilitating international trade and fostering innovation.

2. Efficiency and Automation

Digital technologies streamline business operations, reducing costs and increasing efficiency. Automation, powered by AI and machine learning, optimizes supply chains, inventory management, and customer service. This allows companies to innovate continuously and respond quickly to market demands.

3. Data-Driven Decision Making

The digital economy generates vast amounts of data, providing valuable insights into consumer behavior, market trends, and operational performance. By leveraging big data and analytics, businesses can make informed decisions, personalize offerings, and develop innovative products and services.

4. New Business Models

The digital economy enables the creation of new business models that were previously unimaginable. Examples include the sharing economy (e.g., Uber, Airbnb), subscription services (e.g., Netflix, Spotify), and platform-based businesses (e.g., Amazon, Alibaba). These models disrupt traditional industries and drive innovation in trade and commerce.

5. Access to Global Talent

Digital platforms and remote work capabilities allow businesses to tap into a global talent pool. This access to diverse skills and expertise fosters innovation and enables companies to develop cutting-edge solutions.

6. Financial Inclusion

Digital payment systems and fintech innovations provide financial services to underserved populations, promoting financial inclusion. This not only boosts economic growth but also encourages entrepreneurship and innovation in regions that were previously excluded from the global economy.

7. Democratization of Knowledge

The digital economy democratizes access to information and knowledge. Online education, open-source software, and collaborative platforms empower individuals and businesses to innovate and contribute to global trade and commerce.

8. Sustainability and Green Innovation

Digital technologies can drive sustainable practices by optimizing resource use, reducing waste, and promoting renewable energy. The digital economy encourages green innovation, which is essential for addressing global environmental challenges.

9. Enhanced Customer Experiences

The digital economy allows businesses to engage with customers in new and meaningful ways. Through personalized marketing, social media interactions, and virtual reality experiences, companies can create loyal customer bases and drive innovation in product development and service delivery.

10. Regulatory and Policy Support

Governments and international organizations are increasingly recognizing the importance of the digital economy. Supportive regulations and policies, such as data protection laws, digital trade agreements, and innovation grants, create an enabling environment for businesses to thrive and innovate.

Conclusion

The digital economy is not just the future—it’s already reshaping the present. By enhancing connectivity, driving efficiency, enabling data-driven decision making, and fostering new business models, it paves the way for unprecedented innovation in trade and commerce. Embracing digital transformation is essential for businesses to stay competitive, adapt to changing market dynamics, and contribute to a more inclusive and sustainable global economy.

The digital economy refers to an economy that is based on digital technologies, primarily the internet. It’s a new way of doing business that fundamentally changes how goods and services are produced, distributed, and consumed. This transformation is driven by the integration of technology into all areas of business and society, leading to innovation, efficiency, and new opportunities.

Key Components of the Digital Economy

1. E-Commerce: Online shopping and transactions have revolutionized the retail industry, making it possible for businesses to reach a global audience and for consumers to shop anytime, anywhere.
2. Digital Payments: Financial transactions are increasingly moving online, facilitated by digital payment systems and cryptocurrencies. This enhances convenience, security, and speed.
3. Cloud Computing: By storing and processing data on the internet, businesses can access resources and services on-demand, reducing costs and increasing flexibility.
4. Big Data and Analytics: The massive amount of data generated by digital activities is analyzed to make informed decisions, predict trends, and understand consumer behavior.
5. Internet of Things (IoT): Connected devices communicate with each other to create smart environments, from homes to cities, enhancing efficiency and quality of life.
6. Artificial Intelligence (AI): AI technologies are automating tasks, improving decision-making, and creating new products and services.

Significant Impact on Various Sectors

1. Business and Industry: The digital economy drives efficiency, innovation, and competitiveness. Businesses can operate 24/7, reach global markets, and use data to tailor products and services to customer needs.
2. Education: E-learning platforms and digital resources provide access to education for people around the world, breaking down geographical and financial barriers.
3. Healthcare: Telemedicine, electronic health records, and AI-driven diagnostics improve patient care, reduce costs, and make healthcare more accessible.
4. Finance: Fintech innovations like digital wallets, blockchain, and robo-advisors are transforming financial services, making them more efficient and inclusive.
5. Government: E-governance initiatives streamline public services, enhance transparency, and improve citizen engagement.

Challenges and Considerations

1. Digital Divide: There is a gap between those who have access to digital technologies and those who do not. Bridging this divide is crucial for inclusive growth.
2. Cybersecurity: As more activities move online, the risk of cyber-attacks increases. Ensuring robust cybersecurity measures is essential.
3. Privacy: The collection and use of personal data raise privacy concerns. Regulations and policies are needed to protect individuals’ rights.
4. Job Displacement: Automation and AI may lead to job displacement in certain sectors. Upskilling and reskilling programs are vital to prepare the workforce for the future.

The digital economy is more than just a trend; it’s a fundamental shift that is reshaping our world. By pioneering innovation and opening up new possibilities, it holds the promise of a more connected, efficient, and inclusive global economy. However, it also comes with challenges that must be addressed to ensure that the benefits are shared by all.

Looking Ahead

As the digital economy continues to evolve, it will be crucial to foster collaboration between governments, businesses, and individuals to navigate the complexities and harness its full potential for sustainable development.

The Author, Dr Divya Vishwanath is a preeminent global Data Scientist and the Garwood Fellow at the Haas School of Business, University of California. Additionally, she holds a prominent membership at the Institute of Economics of the Latvian Academy of Sciences in Riga.

Dr. Divya earned her Master’s degree in Computer Application, specializing in Computer Science, from SIES College of Management Studies. As an esteemed research scholar, her primary focus is on data-driven research through the use of Artificial Intelligence (AI) for the healthcare industry.

Driven by the belief that data-driven AI will be the cornerstone of future advancements, Dr. Vishwanath’s groundbreaking work in applying AI to healthcare has markedly advanced the field. Her dedication to improving health outcomes and fostering innovation underscores her role as a leading authority in the intersection of data science and healthcare, inspiring future advancements in these critical domains.

The future implications of data-driven AI in healthcare are vast and transformative is what Dr Divya Vishwanath. Here are some key areas where AI is expected to make a significant impact:

1. Enhanced Diagnostics and Early Detection: AI algorithms can analyze vast amounts of medical data, including imaging scans, lab results, and patient histories, with unmatched accuracy. This capability allows for early disease detection and improved diagnostic precision, potentially saving lives by ensuring timely interventions.
2. Personalized Medicine: AI-driven systems can evaluate genetic data, lifestyle factors, and clinical histories to provide personalized treatment plans. This approach ensures that therapeutic options are tailored to individual patient needs, minimizing side effects and improving treatment outcomes.
3. Predictive Analytics: AI models can forecast disease risks and patient outcomes by analyzing past medical records and lifestyle choices. This proactive approach allows healthcare providers to allocate resources efficiently and intervene before conditions worsen, ultimately reducing hospital readmissions and improving patient care.
4. Improved Patient Engagement and Accessibility: AI-driven virtual health assistants and mobile apps can provide 24/7 medical support, improving healthcare accessibility. These digital assistants can offer real-time monitoring, diagnostics, and personalized health advice, particularly benefiting underserved communities.
5. Operational Efficiency: AI can streamline administrative tasks, such as scheduling, documentation, and data management, reducing the burden on healthcare professionals. This efficiency allows medical staff to focus more on patient care, enhancing overall healthcare delivery.
6. Data Integration and Interoperability: AI advancements enable automated data standardization and integration, addressing challenges related to fragmented healthcare data systems. This integration improves the accuracy and consistency of patient records, leading to better clinical decision-making and patient outcomes.
7. Ethical and Regulatory Considerations: The widespread adoption of AI in healthcare requires adherence to stringent compliance frameworks. Ethical considerations, such as patient privacy, fairness, and transparency, are paramount in AI governance, ensuring that AI-driven healthcare solutions are safe and equitable.

Overall, data-driven AI has the potential to revolutionize healthcare by enhancing diagnostics, personalizing treatment, improving operational efficiency, and ensuring better patient outcomes. As AI technology continues to evolve, its integration into healthcare systems will likely lead to more innovative and effective healthcare solutions.

In the bustling heart of Bengaluru, known as the Silicon Valley of India, stands a beacon of excellence and innovation in the field of cosmetic and plastic surgery—Dr. Shetty’s Cosmetic Centre. This centre, founded by the internationally acclaimed plastic and cosmetic surgeon Dr. Sahebgowda Shetty, has become synonymous with pioneering approaches and unparalleled patient care.

Dr. Sahebgowda Shetty’s Recognition in the Healthcare Super Brand Awards

Dr. Sahebgowda Shetty’s exceptional contributions to the field of cosmetic and plastic surgery have earned him a prestigious spot in the Healthcare Super Brand Awards presented by the Pharma Leaders Group. This award celebrates innovation, excellence, and leadership in healthcare, recognizing individuals and organizations that have made significant impacts in their respective fields.

Dr. Shetty’s innovative techniques, patient-centric approach, and dedication to advancing cosmetic surgery have set him apart as a leader in the industry. His inclusion in this esteemed award highlights his commitment to providing top-tier medical care and his influence on the future of cosmetic and plastic surgery.

Dr. Sahebgowda Shetty’s journey began at the prestigious Karnataka Institute of Medical Sciences, where he honed his skills and nurtured his passion for transforming lives through medicine. With over two decades of experience, Dr. Shetty has carved a niche for himself in the hospital and healthcare industry. His expertise spans a wide range of specializations, including cosmetic and plastic surgery, healthcare, and rhinoplasty.

Dr. Shetty’s innovative techniques and procedures have garnered widespread appreciation from patients and peers alike. His commitment to excellence has not only earned him a reputation as a skilled surgeon but also as a compassionate and dedicated healthcare professional. It is this unique blend of skill and empathy that has led to Dr. Shetty being featured in the Healthcare Super Brand Awards by the Pharma Leaders Group.

At Dr. Shetty’s Cosmetic Centre, innovation is a cornerstone. The centre is renowned for its advanced techniques in cosmetic plastic surgery and hair transplantation. Each procedure is tailored to the individual needs of the patients, ensuring that they receive the highest standard of care and achieve their desired results.

Patients from across the globe visit Dr. Shetty’s Cosmetic Centre, drawn by the promise of exceptional care and cutting-edge procedures. They leave not only with enhanced appearances but also with renewed confidence and a positive outlook on life. Dr. Shetty’s dedication to his craft and his patients is evident in every aspect of his work, making him a true leader in the field of cosmetic and plastic surgery.

In a world where healthcare is continuously evolving, Dr. Sahebgowda Shetty stands out as a beacon of innovation and excellence. His contributions to the field have not only transformed the lives of his patients but have also set new benchmarks for the industry. Through his unwavering commitment to quality and patient satisfaction, Dr. Shetty has established himself as a healthcare super brand, inspiring future generations of medical professionals to strive for greatness.

Cosmetic Surgery at Dr. Shetty’s Cosmetic Centre

Dr. Sahebgowda Shetty’s Cosmetic Centre offers a wide range of cosmetic surgery procedures designed to enhance and restore one’s appearance. Some of the most popular procedures include:

• Vaser Liposuction: This advanced technique uses ultrasound waves to break up and liquefy fat cells, making them easier to remove.
• Rhinoplasty: Also known as nose reshaping, this procedure helps in achieving a more balanced and aesthetically pleasing nose.
• Scarless Mole Removal: Using precise techniques, moles are removed without leaving noticeable scars.
• Gynecomastia Surgery: This procedure addresses the reduction of excess breast tissue in men.
• Skin Tightening: Techniques like Inmode Embrace RF and HIFU are used to tighten and rejuvenate the skin.

Dermatology Services

Dr. Shetty’s Cosmetic Centre also provides comprehensive dermatology services to address various skin concerns. Some of the treatments offered include:

• Fractional CO2 Laser: This laser treatment is used to reduce the appearance of acne scars, deep wrinkles, and other skin irregularities.
• Hydra Facial: A three-step process that deep-cleans, exfoliates, and hydrates the skin.
• Nd:YAG Laser: A non-invasive laser treatment that targets deep layers of the skin to treat pigmentation and vascular lesions.
• Morpheus8: A novel technology for subdermal tissue remodeling, dermal treatment, and epidermal resurfacing.

Hair Transplantation

Hair transplantation is another area where Dr. Shetty excels. The centre offers advanced hair restoration techniques to help patients regain their hairline and confidence1. Some of the key procedures include:

• FUE (Follicular Unit Extraction): A minimally invasive technique where individual hair follicles are extracted and transplanted to the balding areas.
• FUT (Follicular Unit Transplantation): This involves removing a strip of scalp from the donor area and transplanting the hair follicles into the recipient area.
• Robotic Hair Transplantation: Utilizing robotic technology for precise and efficient hair transplantation.

Dr. Shetty’s Cosmetic Centre is renowned for its high standards of care, innovative techniques, and personalized treatment plans. Patients from around the world visit the centre to benefit from Dr. Shetty’s expertise and achieve their cosmetic goals.

In a grand celebration of healthcare excellence, Dr. V. Mohan, Chairman and Chief Diabetologist of Dr. Mohan’s Diabetes Specialities Centre, received the highest honor of “Indian of The Year – Diabetes & Endocrinology 2024” at the Pharma Leaders Healthcare Super Brand Awards 2024. The award was presented during the 16th Annual Healthcare Leadership Summit & Awards 2024, held on Friday, December 20, 2024, at the Hotel Hilton Mumbai.

The coveted award trophy & Cerfificate of excellence  wes presented in a power-packed gathering of industry leaders, business tycoons, healthcare experts, policymakers, and diplomats. Padma Shri Dr. Mukesh Batra, Founder Chairman Emeritus of Dr. Batra’s Healthcare, presented the awards in the presence of Dr. Satya Brahma, Chairman and Editor-In-Chief of Network 7 Media Group.

Themed “Trailblazing the Future: Leaders and Innovations Shaping Modern Healthcare,” the event gathered eminent voices from the healthcare industry. Dr. Mohan’s dedication and pioneering contributions to diabetes research and management were celebrated and recognized by his peers and the wider healthcare community.

A veteran in diabetes care, Dr. Mohan has been deeply involved in research since his undergraduate days. He has published over 1,330 papers in peer-reviewed journals, including 864 original articles, 307 review articles and invited editorials, and 162 chapters in textbooks on diabetes. His work has garnered an impressive 135,000 citations and an h-index of 135, reflecting his significant impact on the field.

Dr. Mohan has also been instrumental in training a large number of physicians, diabetologists, nurses, and educators. His contributions have been recognized with over 180 awards, including the prestigious Dr. B.C. Roy National Award by the Medical Council of India and the Dr. B. R. Ambedkar Centenary Award from the Indian Council of Medical Research, the highest award for biomedical research in India. He is the first Indian to receive the Dr. Harold Rifkin Distinguished International Service in the Cause of Diabetes Award by the American Diabetes Association, and he was recently conferred the Fellowship of the Royal Society of Edinburgh (FRSE), a rare honor for a medical doctor in India.

Dr. Mohan’s illustrious career spans over 40 years, during which he has transformed diabetes management and education. As the Chairman and Chief of Diabetology at Dr. Mohan’s Diabetes Specialities Centre, a globally recognized IDF Centre of Education and Centre of Excellence in Diabetes Care, he has established a pioneering chain of 50 diabetes care centers across India. His leadership at the Madras Diabetes Research Foundation has provided groundbreaking insights into the unique challenges faced by South Asians, particularly the prevalence of insulin deficiency over insulin resistance.

In a nation grappling with alarming diabetes statistics—101 million people living with diabetes and 136 million individuals with prediabetes—Dr. Mohan’s tireless efforts underscore the urgent need for education, healthcare innovation, and sustained action to address this public health crisis. His recognition as “Indian of The Year – Diabetes & Endocrinology 2024” is a testament to his visionary leadership and unwavering commitment to improving the lives of those affected by diabetes.

Dr. V. Mohan is often hailed as the “Father of Indian Diabetes” due to his groundbreaking work and contributions to diabetes research and management in India. His extensive research, innovative approaches, and dedication to diabetes care have significantly shaped the field, making a profound impact on the lives of millions of individuals.

Dr. Mohan’s pioneering efforts in understanding the unique challenges faced by South Asians, particularly the prevalence of insulin deficiency over insulin resistance, have provided valuable insights and advancements in diabetes treatment. His leadership at Dr. Mohan’s Diabetes Specialities Centre and the Madras Diabetes Research Foundation has set new benchmarks in diabetes management and education.

His recognition and numerous accolades, including the recent “Indian of The Year – Diabetes & Endocrinology 2024,” are a testament to his unwavering commitment and exceptional contributions to the field. It’s inspiring to see such dedication and passion being recognized and celebrated.

Leading Doctors, Industry Leaders, and Top Healthcare Brands Shine at the 16th Annual Healthcare Leadership Summit & Awards 2024

Mumbai, December 20, 2024 — In a stellar celebration of excellence and innovation, Network 7 Media Group’s flagship event, the 16th Annual Pharma Leaders Healthcare Super Brand Awards 2024, was successfully held on Friday, December 20, 2024, at the Hotel Hilton Mumbai. The event, themed “Trailblazing the Future: Leaders and Innovations Shaping Modern Healthcare,” brought together some of the biggest voices in the healthcare industry.

Pharma Leaders, the global healthcare communication arm of Network 7 Media Group, renowned for its independent and unbiased journalism, organized the awards. The Pharma Leaders Healthcare Super Brand Awards are recognized as the most prestigious and iconic accolades in the industry. The selection process and methodology involved a robust and thorough evaluation, conducted by Network 7 Research, an independent research firm. This process included physical interviews, emails, and telephonic calls to gauge the mood of the stakeholders.

Speaking on the process and methodology, Dr. Satya Brahma, the Founder and Editor-In-Chief of Pharma Leaders, said, “Pharma Leaders is the first to introduce healthcare leadership awards. These awards, now rebranded as the Healthcare Super Brand Awards, are a hallmark of excellence in the industry. Our selection process is meticulous, marked by extensive research, a robust methodology, and a deep understanding of public sentiment. We defy conventional norms, embracing innovation and technology to set new standards in recognizing healthcare excellence. Over the years, the Healthcare Super Brand Awards have honored more than 500 iconic healthcare leaders and companies. These awards are not just about recognition; they are about celebrating those who lead with innovation, drive progress, and make significant contributions to the healthcare sector. By highlighting their achievements, we aim to inspire others in the industry to strive for excellence and make impactful changes. Our commitment to quality and integrity has made Pharma Leaders a name synonymous with trust and leadership in the healthcare community. As we continue to evolve, our focus remains on fostering growth, encouraging innovation, and recognizing the pioneers who are shaping the future of healthcare.”

The awards were presented in a power-packed gathering of industry leaders, business tycoons, healthcare experts, policymakers, and diplomats. Padma Shri Dr. Mukesh Batra, Founder Chairman Emeritus of Dr. Batra’s Healthcare, presented the awards in the presence of Dr. Satya Brahma, Chairman and Editor-In-Chief of Network 7 Media Group.

Award Winners at the 16th Annual Pharma Leaders Healthcare Super Brand Awards 2024

Full List of Award Winners:

• Indian of The Year – Diabetes & Endocrinology: Dr. Viswanathan Mohan, Chairman & Chief Diabetologist, Dr. Mohan’s Diabetes Specialities Centre
• India’s Most Respected Pharmaceutical Company by Medical Professionals 2024: Zuventus Healthcare Limited
• India’s Most Innovative Pharmaceutical Company in Patient-Care Management 2024: Fredun Pharmaceuticals Limited
• Most Valuable & Admired Enterprise in Temperature-Controlled Logistics Supply Chain: CRYOPDP
• Most Valuable & Trusted Centre of Excellence in Diabetes & Endocrinology 2024: Dr. Vishal Gupta’s VG Advantage
• India’s Most Valuable Pharma API Company Of The Year 2024: Nakoda Chemicals Ltd.
• Change Agent Innovative Woman Business Leader Of The Year 2024: Dr. Satya Vadlamani Chairperson & Managing Director, Murli Krishna Pharma Pvt. Ltd.
• India’s Most Trusted & Valuable & Technology-driven Patient-Centric Dialysis Centre 2024: Apex Kidney Care Pvt. Ltd.
• Pharma Logistics Leader in Supply Chain Transformation & Technological Innovation 2024: Skites Pharma Pvt. Ltd.
• India’s Most Promising & Fastest Growing Healthcare Enterprise 2024: BLISSON
• India’s Most Trusted & Valuable Pharmaceutical Company in CRAMS 2024: Symbio Generrics India Private Limited
• India’s Most Technically & Scientifically Advanced Pharmaceutical Manufacturing Company of the year 2024: Micro Labs Limited
• India’s Most Trusted & Prescribed Cosmetic Dermatology Brand 2024: GLUTONE (Adroit Biomed Limited)
• Pharma Leaders Pharma Professional Of The Year 2024: Dr. Suneel Deshpande Program Head – Pharmaceutical Management, IES Management College and Research Centre
• Transformational Pharma Business Leader of the Year 2024: Mr. Sandeep Singh Managing Director, Alkem Laboratories Limited.
• Pharma Leaders Business Leader Of The Decade: Mr. Mohan Babulal Jain Managing Director, Naprod Life Sciences Pvt. Ltd.
• India’s Most Admired & Valuable Multi-Speciality Hospital in Patient Care 2024: Sir Ganga Ram Hospital

The 16th Annual Pharma Leaders Healthcare Super Brand Awards 2024 showcased the best and brightest in the healthcare industry, honoring those who have made significant contributions and set new benchmarks in excellence. The event not only celebrated individual and organizational achievements but also inspired the healthcare community to continue striving for innovation and progress.

Dr Dilip Surana son of Late Shri G. C. Surana (Founder of Micro Labs ltd) joined the family business in 1985 at a young age of 21 years, and rapidly absorbed the nuances of Corporate Management that grew the company rapidly into a global pharmaceutical enterprise specializing in life saving medicines. His early years in industry were marked by distinguished accomplishments and thus steering Micro Labs among the top ranking companies in the pharma sector. The IMS ranking for the company has improved from over 100 in 1985 to 20 as on April 2012. Micro is also the 11th largest pharmaceutical company in terms of prescription generation.

Under his leadership, the company established world-class state-of-the-art research and manufacturing facilities covering Active Pharmaceutical Ingredients (APIs) and finished dosage forms as well as infrastructure for new drug discovery.

He instilled the most stringent quality standards in his pharmaceutical enterprise. As a result, Micro Labs has to its credit, all the international regulatory approvals including US FDA, UK MHRA, Australian TGA etc., reflecting the high standards of quality and regulatory compliance of research and manufacturing facilities.

He pioneered the concept of specialty – wise focused divisions in the Indian Pharmaceutical Industry and established various divisions that cater to special therapeutic segments in chronic disease management.

• Carsyon – Cardicare specialty division in 1994
• Synapse – Neurology – Psychiatry division in 1995
• Vision – Ophthalmology division in 1998
• Gratia – Dermatology Division in 1998
• Diabetic Task Force – Diabetology division in 2005
• Foresee – Nephrology – Division in 2008

He is a regular participant in various International seminars and summits relating to Pharma industry. He is instrumental in inducting Senior Pharma veterans in the company, to bring in the much needed professionalism in the company.

Recognizing the dynamism and contribution of Mr. Dilip Surana to the pharmaceutical Industry, he has been honored as the ‘Outstanding Entrepreneur of the year 2010’. Besides, Micro Labs is a regular recipient of IDMA Quality Excellence Awards, with a clean hat-trick of 3 awards in 2009, an unprecedented 4 in 2010and three consecutive awards in 2011. Micro Labs has also been conferred upon the ‘India’s Most Admired Pharma Company’ award in 2011.

Summary

As the semiconductor industry, vital for modern electronics, faces global supply chain disruptions, India is aiming to enhance its role in semiconductor manufacturing, driven by government initiatives like the National Policy on Electronics and substantial investments in semiconductor facilities. Despite challenges such as high costs and the need for skilled labour, India is making significant progress towards becoming a major player in the global semiconductor market.

On 11 September 2024, Prime Minister Narendra Modi addressed the SEMICON India 2024, wherein he highlighted India’s ambition to become a global hub for semiconductors, showcasing the nation’s growing role in the industry He highlighted India’s favourable ecosystem, ease of doing business, and a skilled workforce of 85,000 semiconductor experts, which has attracted Rs 1.5 trillion in investments.He stressed the significance of resilient supply chains and the combination of technology with democratic values, reaffirming India’s commitment to building a robust semiconductor industry and contributing to global efforts.

Semiconductors, which are central to the production of electronic devices, are projected to become a trillion-dollar industry by 2030.3 Semiconductors are essential for developing electronic components like transistors, diodes and integrated circuits (ICs). These components, together constitute a chip, and are the building blocks of modern electronics such as computers and smart devices, and form the crux of the automobile industry and also modern military weapons.

The semiconductor industry began to thrive in the 1960s, with China, Japan, South Korea, the United States and Taiwan, emerging as key players. Specialised companies with advanced manufacturing facilities, known as foundries, produce semiconductor chips for design firms, which are referred to as fabless companies. This allows the optimisation of chip manufacturing for multiple clients, and is integral to the global semiconductor ecosystem, allowing rapid scaling up and innovation. The Taiwan Semiconductor Manufacturing Company (TSMC) and the multinational companies such as Global Foundries are examples of dedicated foundries creating ICs.

The semiconductor industry’s supply chain has faced significant disruptions due to various events such as the 2011 tsunami in Japan, the COVID-19 pandemic in 2020, the ongoing Russia–Ukraine conflict, and the Red Sea shipping crisis. The widespread lockdowns, worker shortages and disruptions to shipping and logistics led to chip shortages and increased prices, affecting the car manufacturing industry, digital devices for remote work, and other major electronics. Furthermore, with Taiwan being the leading hub for semiconductor production, the growing threat from China, along with trade disputes between the United States and China, underscores the need to diversify manufacturers and suppliers and to de-risk supply chains to reduce dependence on a limited number of suppliers.

Critical and strategic technologies increasingly drive innovation and modernisation within India’s manufacturing and technological sectors, with an aim to transform India into a global manufacturing hub by improving product and service quality to meet international standards. There is a strong emphasis on ‘Design in India, Design for the World’, encouraging the creation of products that serve both domestic and global markets.

India started its pursuit of semiconductor technology in 1976 when the Semi-Conductor Laboratory was founded in Mohali, Punjab However, the commercialisation of fabrication plants was not successful. ISRO and DRDO have their own semiconductor foundry system which is being utilised for their in-house productions. In order to establish a robust semiconductor ecosystem and give a boost to the electronics export market, India has set a goal of reaching US$ 500 billion in electronics production by 2030.This is in order to facilitate the integration of India into the Global Value Chains (GVCs) in the electronics and manufacturing domain

Amid the global economic shifts, India stands out as a strong investment and production hub for high-tech industries like clean energy, medical devices, electronics and ICT hardware. India has long been a leader in semiconductor design, housing 20 per cent of the world’s chip design talent Recently, the focus has shifted to semiconductor manufacturing, which was initiated with the partnership with the US-based Micron Technology in June 2023 to establish a major Assembly, Testing and Packaging (ATP) facility in Gujarat.

On 2 September 2024, the central government approved a proposal by Kaynes Semicon to establish a semiconductor Assembly, Testing, Marking and Packaging (ATMP) facility in Sanand, Gujarat, with an investment of Rs 3,307 crore. This is the fifth semiconductor unit approved under the India Semiconductor Mission (ISM). India is offering generous incentives to attract semiconductor investments, recognising the strategic importance of this industry amid other competing priorities.

Efforts to Establish a Global Semiconductor Hub

In 2019, the Government of India introduced the National Policy on Electronics (NPE) with the goal of making India a global centre for Electronics System Design and Manufacturing (ESDM) and fostering a robust semiconductor chip design ecosystem. The policy focuses on boosting domestic production and exports across the ESDM value chain, providing incentives for manufacturing core components, and supporting high-tech mega projects such as semiconductor facilities. It also encouraged R&D, innovation in emerging technologies and expansion of existing units, while promoting skill development and a special emphasis on areas such as fabless chip design, medical electronics and automotive electronics.

About Rs 76,000 crore was allocated for the development of India’s semiconductor and display manufacturing ecosystem under Semicon India programme held on 15 December 202.To support this goal, the government launched the Programme for Development of Semiconductors and Display Manufacturing Ecosystem in India on 21 December 2021.This programme provides incentives to companies involved in semiconductor and display manufacturing, covering areas such as Silicon Semiconductor Fabs, Display Fabs, Compound Semiconductors, Silicon Photonics, sensors and packaging. Additionally, the government has approved the modernisation of the Semi-Conductor Laboratory in Mohali as a brownfield Fab.

The India Semiconductor Mission, the appointed nodal agency, oversees the programme, which provides a fiscal incentive covering 50 per cent of the project cost for companies, consortia or joint ventures to establish Semiconductor Fabs, including mature nodes, and Display Fabs with specified technologies in India. On 29 February 2024, Prime Minister Narendra Modi announced the establishment of three semiconductor units: a fabrication facility in Dholera Special Investment Region (DSIR), Gujarat, and Outsourced Semiconductor Assembly and Test (OSAT) facilities in Morigaon, Assam and Sanand, Gujarat. The foundations of these facilities worth about Rs 1.25 lakh crores were laid via video conferencing on 13 March 2024.

Source: Media Reports

India’s path to semiconductor self-reliance requires both national determination and coordinated efforts at the state level. Various states are taking the lead in this endeavour, implementing diverse strategies and incentives to achieve technological advancement. Tamil Nadu, Gujarat, Odisha, Karnataka and Maharashtra are actively pursuing growth in the semiconductor industry with distinct strategies. Tamil Nadu has introduced a comprehensive semiconductor policy featuring financial incentives, infrastructure development and talent programmes, aiming to become a leader in semiconductor and advanced electronics manufacturing while addressing challenges like land acquisition and high operational costs.

Gujarat, through its Vibrant Gujarat initiative and the Gujarat Semiconductor Policy 2022–27, is attracting major investments with significant capital assistance and the creation of ‘Semicon City’ to enhance its semiconductor ecosystem.The semiconductor policy of Odisha offers incentives such as land cost reimbursement and subsidised power tariffs, capitalising on its deep-water ports and industrial corridors, though it needs to further develop its talent pool and infrastructure.Each state presents unique advantages and challenges, and streamlined regulatory processes and transparent governance will be crucial in attracting investments to the semiconductor sector.

Challenges to the Semiconductor Industry

Although various steps have been undertaken in way of creating a robust semiconductor manufacturing ecosystem, certain limitations remain. Chip manufacturing is highly complex and capital-intensive, requiring cutting-edge technology, sophisticated material and precision in the production process, which necessitates significant and sustained investment. The initial set-up for fabrication plants is cost-intensive. The Tata Electronics Private Limited (TEPL), the first commercial semiconductor fab at the Dholera Special Investment Region (DSIR), required an initial investment of over Rs 91,000 crores. Additionally, TEPL also set up an Outsourced Semiconductor Assembly and Test (OSAT) facility in Morigaon, Assam, with an investment of around Rs 27,000 crores, while CG Power and Industrial Solutions Limited will build another OSAT facility in Sanand with an investment of about Rs 7,500 crores.

Developing a semiconductor manufacturing ecosystem in India presents significant challenges, including the need for uninterrupted power, vast quantities of clean water, and the establishment of expensive water purification facilities, especially for chip fabrication. Furthermore, establishing a successful semiconductor ecosystem depends heavily on attracting and nurturing a highly skilled workforce. In order to counter this limitation, there has been an attempt to connect the youth talent pool of the state to academia, educational institutions, and even R&D centres to the semiconductor mission by establishing Centres of Excellence (CoEs). These have been established in IIT Kanpur, IIT Bombay, Andhra Pradesh MedTech Zone Limited (AMTZ), Visakhapatnam and IIT Madras.

There have also been challenges and delays in joint venture efforts, like the Vedanta-Foxconn JV, which planned to set up a semiconductor fabrication facility in Dholera Special Investment Region (SIR). Foxconn withdrew from the agreement despite having signed an MoU with the Gujarat state government.

The semiconductor industry demands intricate processes and substantial investments in R&D and fabrication facilities. As chip sizes shrink, there is a growing need for innovation and skilled labour. To address these challenges, the Design Linked Incentive (DLI) Scheme has been introduced in January 2022 to provide financial incentives and design infrastructure support at various stages of semiconductor design and deployment, of between Rs 15–30 crore per applicant. Financial support is provided to domestic companies, start-ups and MSMEs from the domestic sector. Under the DLI scheme, the government has approved 12 companies for financial assistance of around Rs 133 crores, while 21 applications are still under review. These companies include DV2JS Innovation, Vervesemi Microelectronics, Fermionic Design, Morphing Machines, Calligo Technologies, Sensesemi Technologies, Saankhya Labs, Aheesa Digital Innovations, Netrasemi, Green PMU Semi, WiSig Networks and MosChip Technologies. The government aimed to fund at least 100 start-ups through the DLI scheme.

The Centre for Development of Advanced Computing (C-DAC), part of the Ministry of Electronics and Information Technology (MeitY), is responsible for implementing the DLI scheme, which includes Chip Design Infrastructure Support, Deployment Linked Incentive and Product Design Linked Incentive. Additionally, initiatives like the Scheme for the Promotion of Electronic Components and Semiconductor Manufacturing (SPECS) aimed to expand the country’s electronics manufacturing sector.However, this Production-Linked Incentive (PLI) scheme expired in March 2024, and the government is currently considering revisions for a new PLI programme.

With its pivotal role in powering modern electronics, semiconductors are integral to technological advancements across various industries. India, recognising the strategic importance of this sector, has embarked on an ambitious journey to establish itself as a global semiconductor manufacturing hub. Despite challenges such as high capital costs, the need for skilled labour, and technology transfer restrictions, India is making strides through government initiatives, strategic partnerships and educational investments. The country’s focus on building a robust semiconductor ecosystem aligns with its broader goals of fostering innovation, building resilience in supply chains, attracting global investments and positioning itself as a leader in the global electronics and manufacturing landscape. By building on its current strengths in chip design and fostering growth in the domestic semiconductor sector, India aims to not only fulfil domestic demand but position itself as a significant player in the global semiconductor market.

Delhi Chief Minister Arvind Kejriwal has resigned from the post of Chief Minister today according to the announcement made on Sunday. In the evening, he met Delhi Deputy Governor Vineet Kumar Saxena before formally resigning. At a meeting of AAP MLAs, 43-year-old South Delhi Kalkaji Assembly Constituency Leader Atishi Marlin was elected in place of Kejriwal. Earlier there was talk in the media that Atishi will be the Chief Minister. Because, even though there were many senior MLAs in the party, it was seen that Kejriwal had too much faith in Atishi, the leader of the party. After the arrest of former Chief Minister Manish Sisodia in the Delhi Abkari corruption case, Atishi replaced him and headed many other departments, including the important education department. When Chief Minister Kejriwal was arrested in the same corruption case and was in jail for more than five months, Atishi and one of the youth ministers, Saurabh Bhardwaj, were the key faces of the government and were leading the front of the ‘AAP’ government. On the occasion of Independence Day last August 15th, Atishi had the privilege of hoisting the national flag in place of the Chief Minister in the official program organized in Delhi. This was possible because the Chief Minister gave him a chance. Therefore, after Kejriwal announced last Sunday evening that he would resign from the post of Chief Minister within 48 hours, Atishi was the main face of the party for the post of Chief Minister. However, senior AAP leader Kailash Gehlot, minister Saurabh Bharadwaj and other names were in the news. Even the name of Kejriwal’s wife and former IRS (Indian Revenue Service) Sunita Kejriwal came to the premises of the speculations. However, since Sunita was not elected to the Delhi Assembly and if she was made the Chief Minister, the BJP was afraid of linking the AAP with the party of family members and campaigning, the name of Sunita was slowly removed from the possibility of the Chief Minister and Atishi became the Chief Minister. In today’s ‘AP’ MLA party meeting, Atishi’s name has been institutionally approved and Atishi is going to manage the Union Territory as Chief Minister.

As the five-year tenure of the Delhi government ends on February 23, 2025, the Election Commission has confirmed that the assembly elections will be held in the state before that. While announcing his resignation as chief minister, Kejriwal had called for Delhi assembly elections to be held in November. However, Kejriwal had recommended the resignation of the chief minister and the dissolution of the assembly. However, only the Chief Minister has changed in the state, as before, ‘AP’ is in power. Therefore, the BJP leaders have responded that it depends on the Election Commission when to hold the election before February 23, 2025. If there is no early election, Atishi’s term as Chief Minister will be only five months. It is futile to expect that much will change in Delhi politics in these five months. Because, Atishi will sit in the seat of the Chief Minister Sina, the Delhi government will be run by the ‘remote’ of the outgoing Chief Minister Kejriwal. There is no snake-rope relationship between the central government and the ‘Aam Aadmi Party’ government of the state. After the establishment of BJP rule at the Center in 2014, the BJP did not miss any opportunity to twist the ‘app’ government led by Kejriwal. The Lieutenant Governors or LGs appointed by the central government in Delhi have always tried to prop up Kejriwal and his government. The Supreme Court has consistently given assurance to the Kejriwal government, but the central government has usurped the power of the state government in various ways and asserted its dominance. A recent example is that the Supreme Court clarified through a judgment what should be the powers of the Lieutenant Governor of Delhi and the scope of the powers of the elected government of the state, but the central government enacted a law through the Parliament and handed over all the powers in the hands of the Lieutenant Governor. The culmination of the years-long tussle between the central and state governments is the CBI probe into the Delhi corruption scandal and the arrest and jailing of the state’s chief minister, deputy chief minister and senior leaders by the CBI and ED. Manish Sisodia, the state’s Deputy Chief Minister and Abkari Minister, was first jailed for corruption. After him, ‘AP’ Rajya Sabha MP Sanjay Singh and finally Chief Minister Arvind Kerjiwal. While the Aam Aadmi Party is complaining that the Delhi Abkari corruption case is only a conspiracy of the Central Government and the Aam Aadmi Party has been hatched through Delhi Deputy Governor Vinit Saxena, the BJP has been accusing Kejriwal’s government of being a ‘corrupt government’. It has been more than two years that the CBI, ED Delhi have been investigating the Abkari corruption case, but the trial of the case has been delayed due to the fact that they could not present concrete facts and evidence in the court. The Supreme Court has granted bail to the accused citing the violation of the constitutional right to liberty of the accused by keeping them in jail indefinitely pending investigation as it is uncertain when the trial will start and end. AAP leader Manish Sisodia, MP Sanjay Singh and outgoing Chief Minister Arvind Kejriwal are out on Supreme Court bail. Kejriwal resigned from the post of Chief Minister last Sunday, a day after his release from Tihar Jail announced. With his close associate Manish Sisodia also out on bail from the Supreme Court in the same case, the two will go to the Janata Durbar together and will be restored to power only if the people of Delhi vote for them and certify that they are not dishonest, after AAP chief Kejriwal announced on Sunday that Sisodia will replace him as Chief Minister. Hope was lost. Sisodia and Sanjay Singh are now busy with Kejriwal in Haryana elections. Voting for Haryana Assembly will be held on October 05. After it became clear that Atishi will be the Chief Minister of Delhi, he has come in front of the media and has appealed to the people of Delhi to re-elect Arvind Kejriwal as the Chief Minister in the elections to be held in February next year. Atishi expressed his gratitude to the ‘AP’ chief Arvind Kejriwal and the party (AAP) for giving him such importance as the post of chief minister. However, Atishi clarified in the media that ‘Arvind Kejriwal is the only Chief Minister of Delhi’. While Atishi seems happy with the new charge, he has not hesitated to express his loyalty to Kejriwal, so it is clear that the government will be run by Kejriwal and Atishi will remain only a rubber stamp. BJP and Congress leaders in Delhi said that this is a new drama of ‘app’. It is true that Kejriwal has got bail from the Supreme Court, but the conditions on which the court has granted bail have forced Kejriwal to step down as Chief Minister. Therefore, while the opposition is alleging that he has started a new drama in the hope of getting the sympathy of the people of Delhi, the leadership of the ‘AP’ is claiming that if there are immediate elections in Delhi, the ‘AP’ will surely come back to power. In such a situation, Atishi will have to run the government for five months. Even if the chief minister changes, there is no doubt that the tension between the center and the state will continue. So, everyone will be watching what happens next.

A new and as yet fluid world order is in the making as we begin the transition to the 21st century. Profound changes in all aspects of human activity are challenging established habits of thought and forcing a reinterpretation of what is meant by progress and development. As a consequence, the concept and practice of international cooperation for development are under close scrutiny and are undergoing major transformations.

Our times are the product of a particular set of historical processes that have unfolded over the last four centuries, which have witnessed the rise and worldwide spread of Western civilization. With the benefit of hindsight, it is possible to argue that what gave this period of human history its unique character was the articulation and implementation of what may be called the Baconian program, whose main architect was the philosopher Sir Francis Bacon, Lord Chancellor of the British Crown. Whereas the specific methodological and scientific contributions of Bacon have been the subject of debate, he was, during the early 17th century, the first to put forward a coherent view of how the power of modern science could be used to improve the human condition (Sagasti 1997b).

The Baconian program has been defined in the following terms: “to aim knowledge at power over nature, and to utilize power over nature for the improvement of the human lot” (Jonas 1984, p. 140). Three key features distinguish this program from other views of the production and use of knowledge current in Bacon’s time: an awareness of the importance of appropriate research methods (scientific methodology), a clear vision of the purpose of the scientific enterprise (improving the human condition), and a practical understanding of the arrangements needed to put the program into practice (scientific institutions and state support). In later times, and particularly during the Enlightenment, the idea of indefinite, linear, and cumulative human progress would become the driving force of the Baconian program and give it a powerful and unique character that would allow it to withstand the test of time and endure until our days. Through the application of this idea, the human condition has improved in ways that Bacon and his contemporaries could hardly have imagined.

The main engine that made the Baconian program run was a belief in the unending, linear, and steady advance of humanity — the idea of progress — which mobilized human energies during the 18th and 19th centuries. Beginning with the Hellenistic and Roman notions that knowledge can be acquired step by step through experience and through trial and error, the idea of progress has evolved over the whole history of Western civilization. Cyclic conceptions of the universe in which events repeat themselves over the course of a “great year” had to be overcome before embracing a belief in the open-ended and cumulative character of advances in human history (Bury 1960; Jaki 1974; Nisbet 1980). Faith in a divine design for the cosmos played a major role in the evolution of the idea of progress during the Middle Ages. The Renaissance added a revaluation of the individual and of human actions as a means to improve the human condition while the scientific and geographical discoveries of the 16th and 17th centuries laid the ground for a belief in the inevitability of progress through the accumulation of knowledge (Heller 1981).

With the emergence and subsequent triumph of rationalism during the 17th, 18th, and 19th centuries, the idea of progress gradually lost its religious underpinnings. During the Enlightenment, it became a thoroughly secular idea, in which divine providence played a marginal role, if any. Progress acquired a distinctively social character and was seen as the almost inevitable result of human actions. Through the early 20th century, the general idea of progress would remain ingrained in Western minds as a positive driving force for improvements in the human condition, as the engine that made the Baconian program run.

However, the events that took place during the first 40 years of what Eric Hobsbawm has called the “Short Twentieth Century” challenged our beliefs in any notion of continuous and indefinite human progress. “The decades from the outbreak of the First World War to the aftermath of the Second, was an Age of Catastrophe for [Western] society. For forty years it stumbled from one calamity to another.” This period stands in stark contrast to Hobsbawm’s “Long Nineteenth Century” (from the 1780s to 1914), “which seemed, and actually was, a period of almost unbroken material, intellectual and moral progress.” (Hobsbawm 1994, pp. 7, 13, his emphasis).

The decades that saw the carnage of World War I, the emergence of communism, the rise of fascism, the Great Depression, the Holocaust, World War II, and the atomic bombing of Hiroshima and Nagasaki could hardly be considered conducive to harbouring and nurturing the idea of progress. With the waning belief in the inevitability of progress, the achievements of the Baconian age also began to be seen as suspect.

Yet, the end of World War II changed the mood of gloom and despair of the “Age of Catastrophe.” The triumph of the Allied forces over the Axis brought to the victors a new sense of optimism, satisfaction, and euphoria. The belief that purposeful interventions could improve the human condition was thus reinstated, but with considerable help from the availability of new techniques for managing the economy, planning investments and production, and organizing large-scale enterprises. Wartime advances in science and technology also found many civilian uses and spilled over into the private sector. The Age of Catastrophe was left behind, and a renewed faith in human progress took hold.

The development-cooperation experiment

One key expression of the renewed belief in progress was the emergence of the concept of development, which can be considered the latest incarnation of the idea of progress within the framework of the Baconian program. The notion of development implicit in the various definitions offered at that time could be summarized in the following terms: to achieve in the span of one generation the material standards of living that the industrialized West achieved in three generations or more, but without incurring in the heavy social costs the West had to pay or inflict on others. Development was also supposed to guarantee a minimum level of material comfort to all human beings.

Faith in the possibility of development was sustained and reinforced by the economic successes of the postwar decades. During the period from the late 1940s to the early 1970s, the world economy grew practically everywhere at an unprecedented pace. Jump-started by the financial resources, capital, consumer goods, and technical assistance offered under the Marshall Plan, European economies recovered and grew at nearly 5% a year. Led by Japan, the economies of Asia registered an average annual growth rate of 6%, and Eastern Europe grew at 4.7% a year; Latin America, at 5.3%; and even Africa, at 4.4%. As Angus Maddison put it,

The years 1950 to 1973 were a golden age of unparalleled prosperity. World per capita GDP [gross domestic product] grew by 2.9 percent a year — more than three times as fast as in 1913–1950. World GDP rose 4.9 percent a year, and world exports 7 percent. The dynamism could be observed in all regions. In all of them, GDP per capita grew faster than in any other [period]. The acceleration was greatest in Europe and Asia.

(Maddison 1995, p. 73)

This “Golden Age” of world economic growth was also a period of considerable international generosity. Added to a variety of other motivations, linked to economic and political interests, this generosity helped to expand international cooperation. Following the success of the Marshall Plan to support the postwar economic recovery of Europe, the United States launched the Point IV Program to expand bilateral aid to developing countries in 1949 and created the Technical Cooperation Administration to implement the Point IV Program (CCSTG 1992; Foreign Affairs 1997). The development-cooperation experiment was launched, and for the next two and one-half decades resources to assist poor countries increased continuously, which led to the creation of a large array of bilateral and multilateral institutions to channel and administer these resources.

However, right from the beginning, the onset of the Cold War hijacked the concept of development and the development-cooperation experiment, making them hostage to East-West rivalries. Two alternative ways of achieving development were put forward: one based on market economies and liberal democracy and the other based on central planning and a single-party system. In the decades that followed, each trumpeted its successes and sought to enlist the poor countries, many of which were emerging from decades or centuries of colonial rule in their camp. Developing countries became contested ground for trying one or another set of recipes to promote economic growth and improve living standards. Moreover, the East-West struggle became the lens through which practically all political, economic, and social events would be filtered and seen.

The Golden Age came to an end in the early 1970s, and the world entered into what Hobsbawm called the “Crisis Decades,” which extended (although not uniformly) into the early 1990s: “The history of the twenty years after 1973 is that of a world which lost its bearings and slid into instability and crisis. And yet, until the 1980s it was not clear how irretrievably the foundations of the Golden Age had crumbled” (Hobsbawm 1994, p. 403). The sharp reductions in economic growth of the early and mid-1970s led to average rates of growth during the period of 1973–92 that, with the exception of the average growth rate in Asia, were substantively below those of the Golden Age. The slowdown was most noticeable in Eastern Europe and Africa, where the average rate of growth of gross domestic product (GDP) per capita was negative (−0.1% in each), and in Latin America, where the rate of economic growth barely exceeded that of population increases. The world average growth rate of GDP per capita during this period was 1.2%, in comparison with 2.9% for 1950–73.

During the early 1980s, the debt crisis in a large number of developing countries threatened the international financial system, and in advanced economies, both unemployment and social discontent increased significantly. The reversal of the socioeconomic gains of the previous 25 years made the 1980s a “Lost Decade” for most developing regions, with the notable exception of Southeast Asia. The major upheavals experienced by the Soviet Union and Eastern Europe during the second half of the 1980s and the early 1990s led to precipitous declines in living standards in these countries, and in Western Europe the economic recovery of the late 1980s and early 1990s did not manage to reduce unemployment rates. Following a prolonged period of economic stagnation in the early 1990s, Japan was seriously affected by the collapse of East Asian currencies and stock markets in 1997. Income inequalities worsened everywhere (with the exception of some East Asian countries), and for the first time since the Great Depression, poor and homeless people became highly visible in several cities in advanced industrial nations. The concept of “social exclusion” emerged, first in France and later in the European Union, to account for the reemergence of social problems that were thought to have been solved decades earlier (Rodgers et al. 1995).

The Crisis Decades that ended the Short Twentieth Century witnessed profound changes in all realms of human activity. We have seen the end of the Cold War, the spread of ethnic and religious violence, and the emergence of new international security concerns; the globalization of production and finance, the restructuring of international trade, and the transformation of productive and service activities; the disappearance of centrally planned economies and the worldwide expansion of capitalism (in many cases into areas that lack the supporting institutions for a functioning capitalist economy); and a host of social transformations, which include the demographic changes experienced by both rich and poor countries, the explosion of social demands in the developing regions, and the emergence of serious unemployment problems in both rich and poor nations.

To these transformations, it is necessary to add the extraordinary advances in scientific research and the accelerating pace of technological innovation; the renewed interest in ethical and spiritual matters; the growing role played by religious concerns, ethnic allegiances, and cultural identity in domestic and international politics; the prominence acquired by concerns for the environment and the sustainable use of natural resources; and the challenges posed by the need to renew governance structures at all levels, from the local to the global.

Such a bewildering and turbulent combination of changes and transformations, crystallizing in the emerging “fractured global order” (Sagasti 1989 a, b), has created deep unease and uncertainty, which Hobsbawm described:

The Short Twentieth Century ended in problems, for which nobody had, or even claimed to have, solutions. As citizens of the fin-de-siècle tapped their way through the global fog that surrounded them, into the third millennium, all they knew for certain was that an era of history had ended. They knew very little else.

… The century ended in a global disorder whose nature was unclear, and without an obvious mechanism for either ending it or keeping it under control.

The reasons for this impotence lay not only in the genuine profundity and complexity of the world’s crisis, but also in the apparent failure of all programmes, old and new, for managing or improving the affairs of the human race.

(Hobsbawm, 1994, pp., 558-559, 562, 563)

The turbulence we are experiencing in the transition to a new century and a new millennium signals more than just the end of a Golden Age, of the Cold War, or of the Short Twentieth Century. It is an indication of the exhaustion of the Baconian program that organized and mobilized human endeavours for nearly four centuries and of the need to reassess the idea of progress that became its driving force. In this light, the concept of development can be seen as the latest, and possibly the last, attempt to reinterpret the idea of progress within the framework of the Baconian program. We are now beginning a transition to the post-Baconian age, whose main features cannot as yet be discerned.

Because of the lags involved in reflecting on our experience and in transmitting what we learn to the next generation of leaders and policymakers, we run the risk of confronting the problems of the 21st century with the outmoded mindsets of the Short Twentieth Century. Most political authorities, business leaders, and policymakers acquired their knowledge and experience during the Cold War, some of them during the Golden Age of prosperity, and still others during the Crisis Decades. The Cold War disappeared with surprising swiftness; the Golden Age is long past; the Crisis Decades still bewilder us; and we are beginning a long and uncertain journey into the post-Baconian age. If we are to enter the 21st century with a minimum of surety and aplomb, we must assimilate the lessons of experience while unlearning the habits of thought that constrain our perceptions and limit our capacity to apprehend the new realities.

Against this background, it can be seen that the development-cooperation experiment of the past 50 years took place at a very special time in history. It was also designed, organized, and carried out in ways that suited the spirit of those times, which are now gone. The Cold War provided a stark ideological backdrop to the experiment and helped justify allocating resources to it. An unprecedented period of world-trade growth and economic expansion made it easier to accommodate the development-assistance needs of the poor nations. The dominance of the economic and technological position of the United States, amply demonstrated through the success of the Marshall Plan, made the spread of the “American Way of Life” one of the implicit objectives of Western development assistance in its first decades. A sense of moral certitude, optimism, and generosity ensured ample public support for aid, first in the United States, and later in Europe and Japan.

The Soviet Union and its allies also expanded development assistance, focusing on those developing countries closely aligned with their ideological point of view. Soviet aid was seen as another weapon in the fight against Western capitalism and took the form primarily of subsidized exports of oil and machinery, as well as purchases of primary commodities above world-market prices. In addition, massive fellowship programs were established in practically all academic fields for developing-country nationals within their sphere of influence. All of this was in addition to the extensive provision of military assistance, a practice also common in the West.

A changed context for development finance and international
cooperation

Over time, the institutions, ideas, and practices of development cooperation evolved and experienced many transformations. However, as the 20th century draws to a close, a multiplicity of signals indicate that the development-cooperation experiment, as we knew it, is coming to an end. Western official development assistance (ODA) flows to developing countries, which are usually channeled through bilateral and multilateral development-assistance agencies, have lost ground in relation to direct foreign investment, portfolio flows to emerging stock markets, and commercial bank lending, even though these private flows concentrate mostly on a few countries. Private firms that rate the risks of investments in countries and corporations (Moody, Standard & Poor, Duff and Phelps) have acquired enormous influence in the economic affairs of developing countries, as their views steer the flow of private funds in one or another direction. With the end of the Cold War, development-assistance flows from the former Soviet Union and East European countries were abruptly cut, and developing countries that relied on Soviet aid found themselves in a very difficult situation. The problem was particularly acute for countries such as Cuba, which depended on the Soviet Union for subsidized oil to its supply energy needs.

Development-assistance budgets have been cut in practically all donor countries at the same time as new tasks demand a growing share of a diminishing pool of public funds for international cooperation. Postconflict reconstruction, humanitarian relief, and assistance to refugees now compete with the support of democratic institutions, improvement of governance structures, assistance to transition economies, and efforts to fight drug traffic and crime. This has been squeezing out resources allocated to fields that once were the main focus of development assistance: health and population, food and nutrition, education and training, small and medium-size enterprises, technical assistance, and balance-of-payments support. Moreover, the poorest countries of Africa and Asia, which have relied primarily on concessional flows, have been most affected by reductions in foreign assistance budgets.

By the mid-1990s, the United States had abdicated its traditional leading role in the field of development assistance. The US Congress refused to honour contribution pledges made by the Administration to the United Nations Development Programme (UNDP) and to the International Development Association (IDA) and also refused to pay its assessed contributions to the United Nations central and peacekeeping budgets. This made France, Japan, and other European countries the main contributors to development cooperation. However, after years of steady increases, at a time when other rich countries were slashing their cooperation budgets, Japan reduced its foreign aid by 10% in 1996. Even what were once called the “like-minded” countries, owing to their unwavering support for development assistance (Canada, Denmark, the Netherlands, Norway, and Sweden) have reduced the budgets they allocate for this purpose and have increased the conditions on access to these funds.

Despite the setbacks experienced during the last decade by traditional bilateral and multilateral mechanisms for development cooperation, new possibilities are opening up for rich and poor countries to collaborate in some specific fields, such as environmental sustainability, the prevention of weapons proliferation, and the fight against drug traffic and international crime. At the same time, private sources of funds are becoming more important in a few aspects of development cooperation, such as building policy-research capabilities in transition economies, helping to fight diseases in the developing world, and removing antipersonnel mines. Nongovernmental organizations (NGOs) have acquired greater prominence and are providing international leadership in some specific fields, particularly in environmental conservation, social conditions, and human rights.

In December 1997, the Parties to the United Nations Framework Convention on Climate Change approved the Kyoto Protocol, which seeks to limit, and even reduce, the emission of gases that contribute to global warming. The Kyoto Protocol establishes a “clean-development mechanism,” which is designed to assist developing countries, and this mechanism could eventually lead to the transfer of hundreds of millions of dollars a year from rich to poor countries. Although a lot of ground still needs to be covered to make this mechanism operational, there are early indications that developing countries can reap substantive benefits from the sale of unused emission rights if their forests can absorb greenhouse gases in amounts above their emission limits. On other fronts, concerns about the proliferation of nuclear weapons in the post-Cold War period have prompted some highly industrialized nuclear powers, particularly the United States, to offer financial and other incentives to developing countries to renounce the use and development of nuclear weapons. Financial and trade rewards have also been offered to drug-producing countries that collaborate with US and European efforts to curb the international drug trade.

Private financial flows to developing countries, which include direct foreign investment and portfolio investments in emerging markets, have experienced major increases during the 1990s. They are now five times larger than official flows provided by government agencies and international organizations, in contrast to the situation prevailing in the mid-1980s, when they represented about 50% of total financial flows to developing countries. However, private financing is concentrated in a fairly small number of emerging and transition economies, while the vast majority of developing countries still depend on official aid for external financing. Grants provided by private foundations (Ford, Rockefeller, Pew, MacArthur, Carnegie Corporation, Tinker) remain a relatively small component of international development cooperation, but their impact is magnified because they focus on training, building local capabilities, and strengthening public and civil-society institutions.

During the last decade, a few wealthy individuals have joined the ranks of private philanthropy, once the province of well-established foundations and religious organizations that focused primarily on humanitarian relief. The three most visible examples of this new breed of philanthropist are George Soros, who has contributed hundreds of millions of dollars to humanitarian organizations, human-rights activists, and policy-research centres in Eastern Europe; Ted Turner, who in late 1997 pledged $1 billion (US dollars throughout) to support the United Nations; and Bill Gates, who has recently established two foundations to donate hundreds of millions of dollars annually. They have also been joined by internationally known musicians and media personalities. A series of rock concerts broadcast on television in the early 1990s, linked to a phone-in campaign soliciting pledges from viewers, raised more funds to combat AIDS in Africa than did formal-pledging conferences organized under United Nations auspices. Toward the end of 1997, and in just a few weeks royalties from a compact disc issued in memory of Lady Diana generated more than $100 million in just a few weeks for campaigns to remove antipersonnel mines in war-torn countries.

Countries until recently heralded as major successes of the development-cooperation experiment, such as the four Southeast Asian Tigers, experienced severe financial difficulties during 1997, which are likely to impair their growth prospects for several years. For example, 1 year after joining the rich-countries club of the Organisation for Economic Co-operation and Development (OECD), South Korea’s currency and stock market plunged more than 40%. From being the 11th largest economy in the world, the country slipped to 20th place in just a few months. After about 8 weeks of preparation and in less than 1 hour of discussion in early December 1997, the World Bank approved up to $10 billion in emergency loans to South Korea, more than it had loaned to that country in the previous three decades and about half the total annual lending volume of this multilateral financial institution.

The economic and financial crises of 1997–99, which first hit several developing countries in East Asia, eventually affected economies in nearly all regions of the world, including the Russian Federation and Latin America. The overall crisis has had consequences that far transcend the world of financial markets; it has had a significant impact on the development efforts of countries such as Indonesia, where, in just a few weeks, the number of poor increased dramatically. Analysts initially explained the crisis on the basis of weaknesses in the financial systems and economic policies of individual developing countries like South Korea and Thailand, together with the close integration of global financial markets, as a result of which disturbances are rapidly transmitted beyond national borders. However, the serious global impact of the crisis has led a growing number of analysts to search beyond these factors for a systemic cause (Bezanson 1999). This in turn has shifted attention to the apparently inadequate role of multilateral institutions like the World Bank and the International Monetary Fund (IMF) in ensuring stability and promoting sustainable development (The South Letter 1998). Moreover, it has been observed that the East Asian crisis and its repercussions “have led to serious questioning of the relevance of the Washington Consensus as a standard development template and about whether a new development model or ‘paradigm’ is needed” (Bezanson 1999, p. 17).

All of these changes suggest that the international context, the channels, and the mechanisms for cooperation between rich and poor countries and the structure of financial flows to developing regions are changing fundamentally in the transition to a new century, and it cannot be expected that the institutional arrangements designed and put in place four or five decades ago will continue to be effective in this new situation. In this sense, the development-cooperation experiment — as we knew it — is coming to an end. Yet, both enduring motivations and new rationales will give rise to new forms of cooperation, policies, and institutions more in tune with the spirit of the times.