Archive for November 2011
New Economic Policy
According to a latest report by national crime records bureau the number of suicides by debt ridden farmers in the year 2007 alone is nearly 17, 000. Their suicides seem to be inevitable in this globalized era. The reasons lie in both domestic and non-domestic factors. One of the main domestic factors is mounting debts. The non domestic factors are dumping of Chinese cotton and textiles into India’s market and also competition from many other brands from abroad.
Regional imbalances in development, poverty, unemployment, under nutrition, malnutrition, etc are still the major problems in India. The KPO (knowledge process outsourcing) and BPO (business process outsourcing) are helping only the English speaking and computer literates. But in rural India there are many uneducated and unskilled youth who are struggling to find a regular livelihood source. Thus the opponents of globalization say that the globalization era has not been helping them much to improve their income and thus the quality of life. Hence the gap between the rich and the poor seems to be widening further. The rural school drop outs have been migrating to the cities to work in the services sector like stressful construction works, restaurants and hotels etc leaving behind their families in their villages.
The new economic policy involves three aspects like liberalization, Privatization, and Globalization. Globalization means having minimum possible restrictions in economic relations with other countries. This includes the free movement of labor, capital, goods, ideas, technology, etc. The foreign direct investments as invested by Pepsi, Coca Cola, banking companies, and foreign institutional investments through stock exchanges are some examples for investments.
One of the primary objectives of the government is to reduce the proportion of population depending on primary activities like agriculture, forestry, poultry, etc and to increase its dependence on secondary and tertiary activities. The secondary activities are related to manufacturing industrial sector. The tertiary economic activities are the services sector.
The new economic policy is responsible for increase in the GDP growth rate as well as its contribution to the world GDP.
India’s contribution to the world’s GDP has risen to 2% in 2007 when compared to 0. 9% in 1980. This increase is mainly contributed by services sector as the industrial growth rate in India has been declining in the recent years.
The macroeconomic indicators are:
1. Economic growth rate: 8%,
2. Full employment, the present unemployment rate in India is around 7. 1%,
3. Balance of payments, as on 5th december’08 the foreign exchange resources stood at $245. 857 billion,
4. Price stability, the present inflation rate in India is about 6. 3%.
In India nearly 65% of population still depends on agriculture and allied activities like poultry, dairying, etc for their livelihood. The government should make more and better efforts to improve the employment avenues for the unemployed during the agricultural lean season. The rural uneducated and unskilled seem to be enjoying only the wide satellite television channel network, cheap cell phones, and other goods in this globalized era. But the urban rich seems to be highly profited by the new economic policy.
Infrastructure facilities like electricity, transportation, communication, credit, marketing, irrigation, education, and health facilities are yet to reach the poorest of the poor. Approximately 30% of 115 crore Indians is still living below the poverty line. This proportion of the population can neither afford costly infrastructure nor is happy with the available social infrastructural facilities in their villages and some urban areas.
The Globalization policy has been successful so far in the economic development of the nation but the regional imbalances, inter personal variations in development, and other gaps have to be taken care of further to achieve the constitutional goal of transforming Indian society into an egalitarian society.
Economic Development
Readers and viewers must know the basic concepts and principles of economic development. After this, will be economic problems and development strategies that is applied in this article. The next part is development policies and programs that has something to do with monetary and fiscal policies in. It will be discovered as a process for an economic planning towards developmental model. Last but not the least, will be the major issues in economic development.
According to Fajardo in his book, “Economic Development defines as a progressive process of improving human conditions such as reduction or elimination of poverty, unemployment, illiteracy, inequality, disease and exploitations. To understand this meaning carefully, it is an interaction of different factors”. The example of this is investing a rice harvest per hectare in your designated ranch, there are various inputs that are combined like fertilizers, insecticides, irrigation, technology, and many other things related to this example.
This development is based on the classifications of countries or what categories do they belong? The categories will be either highly developed countries, intermediate countries, or they belong to less developed countries.
It has also a problem like humans. There is a saying, ” If there is a problem, there is a solution”
This development will also give information and at the same time enumerated some countries from different continents that gives economic status of how they performed in their gross national product and gross domestic product.
They must have feedbacks of World History because this will be based on their economic status of how does it developed in the past?
After I end this composition of this article, this is just only the beginning of my content in writing the economic development.
Literacy and Economic Development
An Educated country is a developed country. Literacy level plays a major role in the economic development of a nation. If people are literate, then there will be minimum violence in the country. Literacy leads to good employment opportunities. If literacy level is high in a nation, then there will be more number of entrepreneurs and the flow of money will be huge. If new enterprises come up, the economy of the country grows with the amount of tax collected. New enterprises lead to more employment generation and in turn reduce the unemployment rate. A Nation with a low unemployment rate will develop very rapidly. Let’s elaborate on the above.
Literacy level is directly related to economic development. The cycle goes like this Literacy leads to rise of entrepreneurs and new enterprises which in turn provide employment and there will be huge demand for employment. When there is demand for employment, there will be a huge rise in the number of schools and colleges. When there are more number of schools, public can get easy access to schools and colleges at affordable costs. In this manner all will get education and the literacy level will go up. The demand in the industry is directly relational to the demand in the education sector and in turn directly related to literacy level and vice versa. This is a circular flow of activities depicted in the diagram below. The literacy level will make the nation in demand. Recently, the economic growth of INDIA and CHINA are mainly due to the rapidly growing literacy level in these countries.
In the case of literacy level, both supply and demand are increasing rapidly in INDIA and CHINA. The Population of both the countries is increasing and the education sector is increasing and the literacy level is increasing and with it the economy of both these nations are booming. Still, the beautiful aspect of both these nations is although the supply is increasing, the demand keeps on increasing and so far no saturation point has reached and it is expected to continue for the next ten years. Both the nations have a strong literate teenage group and that is the power of these nations growing into knowledge packed zones.