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ECONOMIC DEVELPOMENT AND UNDERDEVELOPMENT (THERE ARE 10 CHARCTERSTICS OF…
ECONOMIC DEVELPOMENT
AND UNDERDEVELOPMENT
INTRODUCTION:
TODAY'S WORLD IS IN SHARP CONTRAST B/W DEVELOPED AND DEVELOPING COUNTRIES
PERCAPITA OF NORWAY IS $ 100000+
PER CAPITA OF MALAWI IS $ 270
THIS POINT CAN BE USED IN INEQUALITY, NEGATIVE OF GLOBALIZATION, NEOCLASSICAL
ACC. TO "THE GROWTH REPORT' BY 2050 ADDITIONAL 3 BILLION POPULATION TO BE ADDED AND 2 BILLION OUT OF IT WILL COME FROM LDC'S
ACC. TO WORLD BANK
82 % OF POPULATION LIVES IN DEVELOPING COUNTRIES(PER CAPITA BELOW $7604) BUT EARN ONLY 48% OF WORLD'S GNI
GROWTH V/S DEVELOPMENT
GROWTH IS MACRO
DEVELOPMENT IS MICRO
GROWTH IS QUANTITATIVE
DEVELOPMENT IS QUALITATIVE
GROWTH IS MONO-DIMENSIONAL : ECONOMIC
DEVELOPMENT IS MULTIDIMENSIONAL:
LIKE HUMAN CAPITAL(SHE), GDP, GENDER PARITY , POVERTY, INDIVIDUAL FREEDOM ETC
THAT'S WHY DEVELOPMENT DISCOURSE CALLS FOR DETRONMENT OF GNP
AND ALTERNATIVE TO GDP , INCLUSIVITY INDEX ARE LAUNCHED
DEVELOPMENT ADDRESSES
PIE:
POVERETY
INEQAULITY
EMPLOYMENT
IF ALL PARAMETERS OF PIE DECLINED FROM HIGH LEVEL THAN DEVELOPMENT CAN BE STATED TO HAPPENED
CASE OF INDIA
POVERTY:
THOUGH ACC TO TENDULAKER COMMITTEE POVERTY IS 21.9% DECLINED FROM 50% AT INDEPENDENCE
BUT MAJORITY OF POPULATION IS MARGINALLY ABOVE POVERTY LINE
EMPLOYMENT:
MARKET FAILURE
UNDEREMPLOYMENT
JOBLESS GROWTH
INEQULAITY:
OXFAM REPORT
ONLY 4% INDIANS PAY INCOME TAX
PIE PARAMETERS SHOWS INDIA FELL SHORT OF DEVELOPMENT
INDIA ECONOMY GREW 6 TIMES(400 BILLION TO 2.5 TRILLION) SINCE LPG REPORMS
BUT POVERTY ONLY REDUCED BY HALF
FURTHER AFTER WASHINGTON CONSENSUS: IT WILL LEAD TO ROLL BACK OF STATE... WHICH FURTHER WILL SHRINK THE INVESTMENT IN PIE
INDIA HAD MORE GROWTH BUT LESS DEVELOMENT
DEVELOPMENT COMES FROM REDISTRIBUTION OF GROWTH
REDISTRIBUTION OF GROWTH WILL COME FROM
MATERIAL WELAFRE OF LOWEST INCOME PEOPLE
ERADICATION OF MASS POVERTY
ILLITERACY
DISEASES
SHIFT FROM AGRICULTURE TO INDUSTRIES AND SERVICES
PRODUCTIVE EMPLOYMENT
GREATER PUBLIC PARTICIPATION
DEVELPOMENT HAS 3 CORE VALUES
SUSTANANCE:
OF 4 THINGS
FOOD
SHELTHER
HEALTHCARE
PROTECTION
SELF ESTEEM
DEVELOPMENT SEEN AS GROWTH OF SELF ESTEEM
FREEDOM FROM SERVITUDE
WEALTH
ADVANTAGE OF WEALTH IS NOT IT BRINGS HAPPINESS BUT IT INCREASES RANGE OF HUMAN CHOICES
THERE ARE 10 CHARCTERSTICS OF DEVELOPING NATIONS
THIS CAN ALSO BE USED AS POINTS WHERE INDIA NEEDS TO BE DEVELOP
1.LOW INCOME LEVEL AND LOW LEVEL OF PRODUCTIVITY
LOW INCOME LEVEL LEADS TO POVERTY TRAP OR LOW EQUILIBRIUM TRAP(VICIOUS CYCLE) (GIVEN BY GUNNAR MYRDAL)
LOW INCOME LEVEL
:arrow_double_down:
LOW INVESTMENT IN SOCIAL INFRA
:arrow_double_down:
LOW PRODUCTIVITY
:arrow_double_down:
GAIN LEADS TO LOW LEVEL OF INCOME
LOW LEVEL OF PRODUCTIVITY IN AGRICULTURE AND INDUSTRIES
BECOZ OF POOR TECHNILOGICAL BASE
IN INDIA AGRICULTURE HAVE 30-40% PRODUCTIVITY WHEN COMPARED TO DEVELOPOED NATIONS
AND 60-65% WRT DEVELOPING NATIONS LIKE PAK, CHINA
THIS LOW PRODUCTIVITY IS WHAT
M SWAMINATHAN CALLS IT AS YIELD RESERVOIR - WHICH HOLDS POTENTIAL FOR FUTURE GROWTH
LOW LEVEL OF HUMAN CAPITAL
HUMAN CAPITAL IS SHE
S: SKILL
H: HEALTH
E: EDUCATION
EDUCATION IS THE MOST FUNDAMENTAL DETERMINANT OF FUTURE DEVELOPMENT PROSPECTS
4.FAST GROWING POPULATION
IN DEVELOPING COUNTRIES THOUGH MORTALITY RATES ARE UNDER CONTROL BUT BIRTH RATES ARE INCREASING
THIS FAST GROWING POPULATION IS BOTH REASON AND EFFECT OF UNDERDEVELOPMENT
AS HIGH BIRTH RATE INCREASES DEPENDENCY BURDEN ON WORKFORCE(16-64) FOR NON WORKING POPULATION(0-15, 65+)
THIS DEPENDENCY BURDEN IS HALF IN DEVELOPING COUNTRIES WHEREAS 1/4 IN DEVELOPED NATIONS
5.HIGH LEVELS OF INEQUALITY AND ABSOLUTE POVERTY
ACC. TO WORLD BANK 14.5% POPULATION LIVES BELOW $1.25 WHICH HAS REDUCED TO 11.5%( BUT INFLATION HAS INCREASED THEREBY NULLIFYING THE EFFECT
6.GREATER SOCIAL FRACTIONALISM
PREVAILING ETHINIC CONFLICT IN DEVELOPING COUNTRIES
WHEREAS IN DEVELOPED COUNTRIES MINORITES SOCIALLY AND ECONOMICALLY INTEGRATE
BUT TERRORISM HAS BLURRED THIS DISTINCTION
7.LARGER RURAL POPULATION BUT RAPID URBANISATION
THIS HAPHAZARD MIGRATION HAVE MADE URBAN CENTRES UNLIVEBLE
8.SUBSTAINTIAL DEPENDENCE OF RURAL ECONOMY
LOW LEVEL OF INDUSTRAILISATION AND MANUFACTURED EXPORTS
BECOZ FIRST PRIORITY IS SUSTAINANCE(FOOD , SHELTHER, HEALTHCARE, PROTECTION)
9.UNDERDEVELOPED FINANCIAL MARKET AND OTHER MARKETS
EXTERNAL DEPENDENCE
LESS WELL ORGANISED INTERNATIONAL RELATIONS
GLOBAL WARMING WILL MORE HARM DEVELOPING NATIONS WHICH IS DONE BY DEVELOPED NATIOBNS
BUT IRONICALLY DEVELPOING NATIONS ARE DEVPENDEDNT ON DEVELOPED NATIONS FOR AID, FINANCE AND TECH FOR ENVIRONMENT ORESERVATION
SO PHENOMENA OF UNDERDEVELOPMENT OF POOR COUNTRIES WILL BE ADDRESED BY
MODIFICATION OF INTERNATIONAL ECONOMIC ORDER
ECONOMIC AND SOCIAL DEVELOPMENT +
NATURE OF INDIAN ECONO0MY
INDIA STARTED AS A UNDERDEVELOPED COUNTRY BUT AFTER 6 DECADES OF PLANNED ECONOMY IT HAS TRANSFORMED INTO EMERGING ECONOMY
INDIA SUCESS STORY CAN BE ATTRIBUTED TO GLOBALISATION
BUT TRICKLE DOWN OF GROWTH HAS NOT BEEN SUCESSFUL IN INDIA
BECOZ
THERE IS NO SPATIAL DISTRIBUTION OF GROWTH
MORE IN SOUTHERN STATES: DUE TO FDI IN SERVICES
WHEREAS NORTHERN STATES , BIMARU STATES HAS REMAINED DEPENDENT PREDOMINANTLY ON AGRICULTURE
INDIA LAGS BEHIND ON HUMAN DEVELOPMENT FRONT+ PATRIARCHAL SOCIETY + RURAL POVERTY
INEQULAITIES DUE TO COMPULSION TO DEPLOY CAPITAL INTENSIVE INDUSTRIES INSPITE OF LABOUR INTENSIVE AS GLOBALISATION COMPETITION IS WORLD CLASS
INDIA IS PARTLY CALIFORNIA AND PARTLY SUB SAHARAN COUNTRY
INDIA 3RD LARGEST ECONOMY ON PPP BASIS
YET MARRED BY HEALTHCARE, EDUCATION , MALNUTRITION
KEY POINT IS ECONOMIC GROWTH IS AN IMP. TOOL FOR DEVELOPMENT
BUT MORE IMP. IS WHAT IS DONE WITH THOSE FRUITS OF GROWTH
HOW GOVT. UTILIZES PUBLIC REVENUE GENERATED DUE TO GROWTH
SO IN THIS PRESPECTIVE INDIA NEEDS TO ADDRESS
SHARP DISPARITIES WHILE CONTINIUING GROWTH ENTHUSIAM
THIS CAN BE DONE BY:
PROMOTING LABOUR INTENSIVE INDUSTRIES WHILE REFORMING THE LABOUR MARKET AS WELL
INVESTMENT IN RURAL INFRASTRUCTURE AND RATIONING SUBSIDES
BRINGING MORE EFFICIENCY AND ACCOUNTABILITY IN PUBLIC DELIVERY SYSTEM