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Day 21 – Q.5. What is stakeholder approach towards development? Examine its significance in the Indian context.

5. What is stakeholder approach towards development? Examine its significance in the Indian context. 

विकास के प्रति स्टेकहोल्डर दृष्टिकोण क्या है? भारतीय संदर्भ में इसके महत्व की जांच करें।


Stakeholder approach refers to the concept of involving everyone who is directly or indirectly affected along with those who may have an impact in the developmental process. Various stakeholders are Central and state governments, state institutions, civil society, citizens, vulnerable groups, media, corporations, environment etc.


This approach involves taking into account aspirations and needs of all stakeholders and designing the process so as to achieve optimum satisfaction among all at minimum cost.

Significance in Indian context:

  • Inclusive growth- Involvement of all stakeholders will ensure growth in every sector and every class of people.
  • Self-governance- The lowermost tier will be involved in decision making, thus aiding the self-governance institutions.
  • Deliberative democracy- With everyone’s involvement, all decisions will be involve consensus decision-making, thus ensuring development for the majority of the society.
  • Sustainable development- Having environment as a stakeholder, will minimize the environment v/s development conflict, and there will be a demand for sustainable solutions for the development process.
  • Poverty alleviation- Participation of all will ensure equitable distribution of resources, and helping in poverty alleviation.
  • Efficiency- Involvement of people in governance will bring out accountability and transparency in the procedures, thus minimizing the overall cost of governance.

Though at a slow pace, India is moving towards this approach, as can be seen in various initiatives like Swachh Bharat Abhiyan, Forest Rights Act, 73rd and 74th constitutional amendments, Corporate Social Responsibility, CAMPA funds, e-governance etc.

Despite the achievements, there remain several lacunae in moving towards this approach in India

  • Unprepared masses- Most of the population lacks literacy, especially financial and governance related. It becomes difficult to give equal weightage to the opinion of an ignorant minority.
  • Diversity- Needs and aspirations varies from region to region, hence it is extremely difficult to reach a common point.
  • Lack of political will- The model of this approach required delegation of power and authority, which is difficult considering the political aspirations of those in power.


Stakeholder approach towards development is undoubtedly one of the best solutions to address the present issues in development. However, given the problems that exist in its implementation, it is better to have a balanced approach that involves mass participation in most areas and centralized decision-making where necessary.

Best answer: Harry

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