Population is the cause of inequality?

Uttar Pradesh or UP is one of the largest states in India, and with a population of more than 22 crores(220 million), it would probably be the 5th most populous country in the world if independent following only China, India, US and the UK. This means that UP should have the resources to support such large population fiscally, in terms of proper remuneration and security. Research proves otherwise. And so, on the occasion of the World Population Day, Uttar Pradesh announced the two children policy in a bid to control the population of the state which has had a fertility rate more than the ideal 2.1 for decades now.

UP on a map of India
UP is the most populous Indian State with 22 crore or 220 million people
Horizontal tricolour flag bearing, from top to bottom, deep saffron, white, and green horizontal bands. In the centre of the white band is a navy-blue wheel with 24 spokes.
India has 1.33 billion people

However, there is a question that stands above all the policies that are to be enacted by the governments – is population really the main problem? And will controlling population be the answer to all the woes?

India is a partial welfare economy. That in turn means it is partially just a big corporate state speaking in terms of economics. The poor and the ones with quotas are provided with free fuel, almost free food and a remuneration even without jobs. This is a positive aspect to a country where the Moody’s announced in 2021 that the inflation rate has become alarmingly high and the government defending its every decision citing a lack of revenue. A lesser population would perhaps mean lesser poor, lesser taxes or probably a complete welfare state run by a capitalist model like those in Scandinavia. This dream might take more than a century to be realised, hence the word – perhaps. A lesser population might also mean a more even distribution of resources – as the incumbent Chief Minister of UP announced in his speech. A similar rhetoric was used by the World Trade Organisation for countries in Asia and Africa where the fertility rates have been traditionally high in an already large population. This rhetoric has also been used by the early Communist China and the Indian government since the 1970s in the name of family planning. Knowing these rhetorics might actually be helpful in understanding the way in which population is and is not a solution to the problems the world faces.

China was the most populous country when the Communist Party announced its victory in a long drawn Civil War. And it soon announced the Great Leap Forward Program followed by steps to open up the economy. And considering population to be the chief factor behind poverty, China announce the now infamous one child policy. The important thing is China is a strong economy in the present day and has reduced poverty to minimal levels and all this was done not because there was any absolute reduction in population (China saw a steady population growth rate in absolute numbers thanks to the pre-existing population being very large and will stay the most populous country at least till 2025), but because of a judicious use of the same. China introduced labour intensive industries in the country, drawing international investment and generating employment for virtually everyone there. The demographic effect of the one child policy has become apparent only in the recent years where China feared that the fertility rate less than 2 might lead to an ageing of the nation – a point where more people would be older than the then working population, prompting it to revise one child policy to a two children policy.

File:Flag-map of the People's Republic of China.svg - Wikimedia Commons
China renounced its One-Child Policy fearing an over aged population

India introduced the Two-Children policy back in the 1970s. The allegedly forced vasectomies during the Emergency months of the Indira Gandhi regime quite clearly reflect the apprehensions the stakeholders had regarding India’s future; the stakeholders being the government that needed funds and the World Bank and WTO that felt Indian population growth was alarming. India still maintains its family planning policy although in a relatively non-forced manner where the government uses mass media to convey this idea of ‘hum do humare do'(We two and our two) to the public. And while Indian population in the urban areas has quite neatly adopted to the idea, rural trends are not so appreciative of the same. India is projected to have more than 1.4 billion humans by 2030, about 15-18% of all humanity, the most populous nation on the planet. Indian government has failed to objectify its labour capital of its people – the government policies directed more towards social support than social upliftment. The generation of jobs was slow and inadequate and so was the generation of skilled labour per capita.

Most European countries, Singapore, Taiwan and Hong Kong represent situations similar to India – large populations, high fertility rates in the middle and late 20th centuries and lack of land and resources. But their approach was to generate employment and skills while simultaneously reducing fertility rates which went down anyway as more people were educated, urban centers developed and prices of common commodities rose.

Hong Kong | History, Location, Map, & Facts | Britannica
Hong Kong is one of the most densely populated territories on the planet.

So, is state intervened birth control useful? In a nation as large as India, it might be, because a large population is still rural and poor and sustains on agricultural output alone or is an urban poor household that is keen on increasing the total labour it can provide to increase its income. However, one might quite clearly conclude understanding all previous scenarios explained that a large part of this intervened birth control is a propaganda or most probably a misjudgment of decades of flawed social and economic policies at the end of the Central and State governments.

To conclude, birth control policies are right considering the fact that a lesser population might mean lesser woes from both the government and the people, however, blaming population as the means and end to the prevalent problems by the state is just running away from accountability.

Happy World Population Day and we all can but await the results this new policy shall usher in the country.

Impact of MGNREGA in India

National Rural Employment Guarantee Act (NREGA) was enacted by the legislation on August 25,2005. But it was renamed as the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) on 2nd October 2009.

” The aim of this scheme is to enhance livelihood security of the household in rural areas of the country by providing at least 100 days of guaranteed employment in every financial year of every household whose adult member volunteer to do the unskilled work.”

The MGNREGA has positive impact on the empowerment and employment pattern of women. Under this scheme, the women can also get wages for the 100 days, because of their taking part in this.

Women participation has increased significantly and perceived it giving them a sense of independence and security. During the year 2013-14, 3.8 crores household were given employment and a total of 135 crores person-days of employment have been produced.

“The MGNREGA programme is the largest and most ambitious social security and public works programme in the world.”

It is seen that MGNREGA covered all poor sections of the rural society irrespective of castes,genders or social orders. It is also observed that this project enhanced income as well as savings of rural households.

MGNREGA has increased the real GDP of the Indian economy as well as household income and real consumption budget.

https://www.icommercecentral.com/open-access/impact-of-mgnrega-on-women-empowerment-and-their-issues-and-challenges-a-review-of-literature-from-2005-to-2015.php?aid=85525

https://www.theindiaforum.in/article/continuing-relevance-mgnrega

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3163659

ELON MUSK

ELON MUSK, the famous and most successful person in the tech world, who played many roles and faced many struggles to become what he is today. Elon Musk was born and raised in South Africa.

We all know him as an entrepreneur, businessman, CEO of Tesla and spacex, but he is also a skilled investor, software developer, designer, inventor, rocket scientist, actor, film producer, one of the richest man in the world.

During his school days, he was a victim of severe bullying. At the age of 12, he created a video game(blaster) and sold it to a computer magazine. Elon Musk is the founder of X.com (later it became paypal), spacex, Tesla motors.

Recently Elon Musk turned 50, over the past decades Musk managed to become CEO of Tesla and spacex, founder of the boring company, co-founder of OpenAI, Neuralink. He also played a vital role in space rockets, electric cars, solar batteries.

“”Failure is a option here, if things are not failing then you are not innovative enough.””.                 – Elon Musk

“” I think it’s possible for ordinary people to choose to be extraordinary.””                                                                   –Elon Musk

Asset Bubble

What Is a Bubble?

A bubble is an economic cycle that is characterized by the rapid escalation of market value, particularly in the price of assets. This fast inflation is followed by a quick decrease in value, or a contraction, that is sometimes referred to as a “crash” or a “bubble burst. Typically, a bubble is created by a surge in asset prices that is driven by exuberant market behavior. During a bubble, assets typically trade at a price, or within a price range, that greatly exceeds the asset’s intrinsic value (the price does not align with the fundamentals of the asset).The cause of bubbles is disputed by economists; some economists even disagree that bubbles occur at all (on the basis that asset prices frequently deviate from their intrinsic value). However, bubbles are usually only identified and studied in retrospect, after a massive drop in prices occurs.

How a Bubble Works

An economic bubble occurs any time that the price of a good rises far above the item’s real value. Bubbles are typically attributed to a change in investor behavior, although what causes this change in behavior is debated. Bubbles in equities markets and economies cause resources to be transferred to areas of rapid growth. At the end of a bubble, resources are moved again, causing prices to deflate.

The Japanese economy experienced a bubble in the 1980s after the country’s banks were partially deregulated. This caused a huge surge in the prices of real estate and stock prices. The dot-com boom, also called the dot-com bubble, was a stock market bubble in the late 1990s. It was characterized by excessive speculation in Internet-related companies. During the dot-com boom, people bought technology stocks at high prices—believing they could sell them at a higher price—until confidence was lost and a large market correction occurred.

The research of American economist Hyman P. Minsky helps to explain the development of financial instability and provides one explanation of the characteristics of financial crises. Through his research, Minsky identified five stages in a typical credit cycle. While his theories went largely under-the-radar for many decades, the subprime mortgage crisis of 2008 renewed interest in his formulations, which also help to explain some of the patterns of a bubble.

Displacement

This stage takes place when investors start to notice a new paradigm, like a new product or technology, or historically low interest rates. This can be basically anything that gets their attention. 

Boom

Prices start to rise. Then, they get even more momentum as more investors enter the market. This sets up the stage for the boom. There is an overall sense of failing to jump in, causing even more people to start buying assets. 

Euphoria

When euphoria hits and asset prices skyrocket, it could be said that caution on the part of investors is mostly thrown out the window. 

Profit-Taking

Figuring out when the bubble will burst isn’t easy; once a bubble has burst, it will not inflate again. But anyone who can identify the early warning signs will make money by selling off positions. 

Panic

Asset prices change course and drop (sometimes as rapidly as they rose). Investors want to liquidate them at any price. Asset prices decline as supply outshines demand. 

Ambani – The Indian tycoon

Dhirajlal Hirachand Ambani, popularly known as Dhirubhai Ambani. He is the father of Mukesh Ambani and Anil Ambani

Dhirubhai Ambani was a successful Indian business tycoon who founded Reliance Industries.

Dhirubhai Ambani,Indian industrialist,the founder of Reliance Industries, a giant petrochemicals, communications, power, and textiles.

Reliance is the biggest exporter in India and the first privately owned Indian company.

Dhirubhai Ambani passed away in 2002, before his death itself in 1980’s he handover the reliance corporation to his sons Mukesh Ambani and Anil Ambani.

Reliance Power Limited (R-power), formerly known as Reliance Energy Generation Limited (REGL) is a part of the reliance Anil Ambani Group. It was established to develop, construct, operate and maintain power projects in the Indian and international markets.

Mukesh Ambani runs Reliance industries which has interests in petrochemicals, oil and gas, telecom and retail.

Reliance industries limited, diverse businesses include petrochemicals, natural gas,retail, telecommunications,mass media and textiles. Reliance is one of the most profitable companies in India.

Reliance’s Mukesh Ambani and Nita Ambani are the owners of the second most expensive home in the World, ANTILIA, Mumbai.

FARMER’S PROTEST IN PRECISE

One of the recent controversies that has been part of 2020 was the recently passed farmers bill. Ever since the passing of the bill, many farmers have assembled in large number in Delhi to show their disagreement towards the passing of the bill. Farmers have been upfront with their protest showing solidarity together against the passing of the bill.

The following are the bills passed by the Government of India

 

The Farmers Trade and Commerce (Promotion and Facilitation) Bill 2020

 

This bill allows farmers to sell their produce to anyone another than the government. It gives farmers a choice on who sell their produce to, whether they want to sell to the government or third party. Earlier the government bought produce from the farmers under the Agricultural Product Market Committee (APMC).

 

The Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Bill 2020

This bill talks about setting up a framework for contract farming. In this a farmer and a buyer can make a contract even before the farmer makes the produce. The goods can be trades outside the premises of the APMC (Agricultural Produce Market Committee)

The Essential Commodities (Amendment) Bill 2020

This act allows inter-state and intra-state trade of farmers produce by eliminating the government in between. A third party can involve in the business.

These were the three new bills passed by the government. They stand as controversial because the farmers feel that it would eliminate the concept of MSP.

Concept of MSP

MSP stands for minimum support price. This price is offered by the government to the farmers on buying the produce. Government for ages have taken produce from the farmers under MSP and subsidised it and sold it to the people. This made it easy for both the people as well as the farmers. With the assurance of the MSP the farmers could rely on the government even in the times of a bad crop or drought situation. They were sure of the MSP but now this is not the case as seen by many farmers. With the introduction of the bill the farmers are scared that the government has withdrawn the MSP and instead bought in Contract farming.   

Problems with the Bill as perceived by the Farmers 

Farmers are afraid that they will be cheated with the coming of this bill. They feel that the government has withdrawn the MSP and put them in danger. Farmers have been gathering in Delhi ever since the passing of the bill. They have assembled in huge numbers trying to give it all they got and asking the government to take back the bill. The government has responded with saying that they have no intentions of withdrawing the MSP and all they hoped for were the welfare of the farming community and the people. 

Like the two sides of a coin, this bills also have their flip side, the farmers believe that they can be easily tricked into any kind of traps with the contract farming by legal clauses. These powerful companies can easily manipulate and exploit the farmers as they wish. But the government says otherwise, they believe that with the coming of contract farming in India there will be a huge profit as well as private investments. 

This act also allows the trade of produce to other states without MSP, this has caused problems too because this will enlarge the gap between the rich and the poor farmers. It will create a gap which cannot be closed and will only widen with the passage of time.

Protests across India

Farmers have been protesting about these bills ever since it was passed and the government has initiated talks with the farmers where they were assured of the fact that the MSP won’t be cut off.

This protest has turned into a massive one where farmers had even blocked roads to Delhi. They also observed a strike on December 8 as part of their dissent all across India. The idea of protesting without the usage of violence enshrines as a part of our Right to Freedom but there have been insights of violence too.  As many as 31 organisations are said to be taking their stand against the bill, most of them are protesting against the first bill in fear of the removal of MSP. There have almost been 5 rounds of talks which had failed. Home Minister Amit Shah had called for a restructuring of the bill but the farmers have said no, they wanted to the full bill to be rolled back. Farmers have threatened to expand the protests by closing the Delhi –Jaipur Highway, capturing Reliance malls and capturing toll plazas.

There have been a series of misunderstandings that needs to be understood and changed for both the government and the farmers to put an end to this issue, only then the true essence of a democracy will prevail.

Minimum Support Price

Minimum support price or MSP is the guaranteed price at which farmers can sell their produce and goods. The government buys the crops from the farmers at pre-set prices to save the farmers from price fluctuations or lack of market access. These price fluctuations occur due to poor market integration, poor monsoon and lack of information. The Commission for Agricultural Costs and Prices (CACP) fixes the MSP for various crops twice a year. These crops include wheat, maize, bajra, ragi, groundnut, cotton, jute etc. MSP was introduced in 1966 when India was facing a deficit in crop production. In the wake of the Green Revolution, the Indian Government realised that they needed to give some incentives to farmers to grow labour intensive crops like wheat and paddy. These crops also didn’t fetch good prices in the market.

The CACP while fixing the prices, takes into consideration some costs. These costs are:-

A2: Expenses incurred on seeds, fertilisers, labour, irrigation and fuel

A2+FL: A2 costs and also includes the value of unpaid family labour

C2: Includes A2+FL and revenue on owned land and interest on fixed capital that is foregone.

The CACP generally uses A2+FL while fixing the MSPs for several crops. C2 costs are kept as a benchmark to check if the recommended prices cover the costs in major producing states. Various other Ministries and Departments also help the CACP in determining the MSPs. In the last decade, the growth rate of MSPs has consistently been declining for both rabi and kharif crops.

Advantages of MSP- MSPs provide an incentive for farmers to grow a crop which may be in short supply, It has helped in transferring incomes to the rural areas, It leads to crop rotation, Profits coming from MSP can be invested in new machinery and equipment by the farmer and also can prevent farmer suicides.

Disadvantages of MSP- Only 6% of Indian farmers actually sell at MSP because of the lack of awareness, As the MSP is announced just before the sowing season many farmers may have started growing some other crop, lack of government machinery and procurement measures, some states benefit more than others.

In the future a higher budget must be allocated toward MSP and adopt a more scientific approach to increase product per hectare. Awareness must be spread about crop diversification as this can prevent supply shocks. Modern warehousing infrastructure is needed like storage facilities and weighing bridges to extend shelf life and prevent rotting of crops. Lastly, MSP should be fixed based on current costs and not on historical costs. These are some ways the MSP system can be improved.

IMPACT OF COVID-19 ON EDUCATION IN INDIA

India is the one of best and largest place for education systems in the world.

India is the country with over 1,000 universities and 50,000 colleges and institutions. The impact of covid 19 is observed in every sector around the world. The education sectors of India as well as world are badly affected by this.

Due to this pandemic, around 32 crore learners stopped to move schools/ colleges, all educational institutions are halted in India. COVID-19 made all the institutions to grow and opt for platforms , techniques, that are not used before. All the classes suspended and all the examinations, entrance tests are postponed.

This pandemic completely destroyed all the schedules of every student. COVID-19 Impact on education is also leads a great damage on country economy at present and in future.

COVID-19 has created many opportunities and challenges for educational institutions to strengthen their technological knowledge and infrastructure.

The lockdown made the entire education online, the teachers are teaching and assigning works through online by using some apps like zoom, Google meet, teams, YouTube, Facebook, skype .,etc.

India is not fully equipped to make education reach every corner of the country through online process. The students those who are not having access to internet will suffer a lot due to the present choice of digital platforms.

Universities and the government of India are relentlessly trying to come up with a solution to this problem.

Agriculture

When tillage begins, other arts follow. The farmers, therefore, are the founders of human civilization.”

— Daniel Webster

Introduction

It all started thousand of years ago , when the human civilization came into existence . Agriculture was a key to survival . People were farming for there domestic purpose , not for the others .

As the civilization started to grow accustomed of agriculture , they grew food in surplus that enabled people to live in cities. Plants were independently cultivated in at least 11 regions of the world.

The development of agriculture enabled the human population to grow many times larger than could be sustained by hunting and gathering.

It was the beginning of different civilization in different parts of the World. From those civilizations , one of them was our’s The Indus Valley Civilization . Vedic literature provides some of the earliest written record of agriculture in India. Rigveda hymns , describes plowing, fallowing, irrigation, fruit and vegetable cultivation.

Some of the ancient and historical evidence suggests rice and cotton were cultivated in the Indus Valley.

Agriculture : In India and World today .

India ranks second worldwide in farm outputs. As per 2018, agriculture employed Indian work force and contributed 17–18% to country’s GDP.

In 2016, agriculture and allied sectors like animal husbandry, forestry and fisheries accounted for 15.4% of the GDP (gross domestic product) with about 41.49% of the workforce in 2020.India ranks first in the world with highest net cropped area followed by US and China.The total agriculture commodities export was US $ 3.50 billion in March – June 2020.

Agriculture is the primary source of livelihood for about 58% of India’s population. Share of agriculture and allied sectors in gross value added (GVA) of India at current prices stood at 17.8 % in FY20.

During 2019-20 crop year, food grain production reached a record of 296.65 million tonnes. In 2020-21, Government of India is targeting food grain production of 298 million tonnes.

India is among the 15 leading exporters of agricultural products in the world. Agricultural export from India reached US$ 38.54 billion in FY19 and US$ 35.09 billion in FY20.

Agriculture is an important industry in the United States. The agriculture industry, which includes both crops and livestock, is responsible for producing most of the world’s foods and fabrics. Agriculture impacts so many things that it’s hard to imagine a world without this important industry.

Schemes and Initiatives

Due to the high requirement of agriculture . It is important for the government to take initiatives and provide better infrastructure to the farmers. However , the required level of investment for the development of marketing, storage and cold storage infrastructure is estimated to be huge.

The Indian Council of Agricultural Research (ICAR), established in 1905, was responsible for the search leading to the “Indian Green Revolution” of the 1970s. The Union Minister of Agriculture is the president of the ICAR. The Indian Agricultural Statistics Research Institute develops new techniques for the design of agricultural experiments, analyses data in agriculture, and specialises in statistical techniques for animal and plant breeding.

Schemes by government for Indian agriculture :

  • Dairy Entrepreneurship Development Scheme.
  • Rainfed Area Development Programme (RADP)
  • Paramparagat Krishi Vikas Yojana (PKVY)
  • Pradhan Mantri Krishi Sinchai Yojana (PMKSY)
  • National Agriculture Market (e-NAM)
  • Pradhan Mantri Kisan Maandhan yojana.
  • Pradhan Mantri Fasal Bima Yojana (PMFBY)
  • Kisan Credit Card (KCC) scheme.
  • Pashu Kisan Credit Card Scheme.
  • PM-Kisan Scheme.

Conclusion

Agriculture sector is one of the prominent sector in India as well as all over the world . India is becoming self – sufficient in pulses and other crops .

Gone are the days , when India was unable to provide sufficient amount of food to the citizens . Gone are the days , when people used to think agriculture was not as important as other sectors . Gone are the days , when people used to think less of farmers . And gone are the days , when people were less educated about agriculture.

Farming is a profession of hope.

— Brett Brian

Link

Baltic Countries and their economic transformation

Baltics, also known as the Baltic States is comprised of three countries including Latvia, Lithuania, and Estonia. The three countries are situated on the eastern shores of the Baltic Sea. In 1991 the regional governments of Lithuania, Latvia, and Estonia declared independence from the Union of Soviet Socialists Republics (USSR). Three countries have a collective population of just over 6 million. The three have been one of the better examples which have been progressing well after the breakup of the USSR. Many other former Soviet republics have been suffering the disarray of corruption and political instability.

In 2002 Baltic countries applied for membership in the European Union (EU) and by May 2004 all the three countries joined the EU. They also gained membership in NATO by March 2004.

Downtown Tallinn

Baltic independence in 1991

It’s truly astounding how the three countries have developed since 1991. None of them were independent since 1940. The three countries had large Russian minorities and many Soviet soldiers were still stationed there. There were no major national institutions and banking infrastructure with a crumbling economy. There was a growing homegrown national moment against the ruling government since the 1980s. The homegrown fronts won the republican parliamentary election against the ruling party in early 1990 and were allowed to govern but with limited power. The Russian president at that time, Boris Yeltsin had not contested their newly declared independence in 1991. The Baltic also witnessed no violence when the three governments had declared their independence.

The three nations also had almost no natural resources, unlike USSR which was resource-rich. They were still in a very vulnerable situation with a small population and no military of their own. Even though the countries were linguistically distinct with different languages, but people in all three countries had a united drive to strive for a better future. The three had implemented reforms with a shared vision. The governments of the three shared many policies, ideas, and experiences. The Baltic States also valued their new independence with a lot of enthusiasm and didn’t take it for granted. The other ex- USSR countries often had to ask for assistance from Russian Federation and also formed new alliances with the Russian government. Baltic countries on the other hand tried to stay away from joining the post-Soviet Commonwealth of Independent States. In the subsequent years, all the three countries adopted radical economic policies and Estonia was the first mover and Latvia and Lithuania would follow suit. In 1994 Estonia introduced a flat income tax at just 24 percent and the other two also implemented the policies. Currently, Lithuania has a tax rate of just 15 percent which is one of the lowest. With early and fast deregulation and privatization, the Baltic countries were able to capture a large amount of foreign direct investment. Estonia also radically transformed its public sector with various digitalization implementations and less reliance on paperwork. Latvian and Lithuania’s transformation in this area was not as drastic but after some time both of them followed Estonia’s footsteps.  Transparency International ranks Estonia No. 17, Lithuania 37, and Latvia 42 out of 175 countries on its Corruption Perception Index for 2020. This is a commendable ranking considering they all the three are a relatively new entrant to the EU and many other EU countries have lower ranks than the three.

Success attributions

The success can also be attributed to the generous support that the three countries received from the international community and funds granted by the EU, World Bank, and the IMF. In 2008 Baltic suffered from the global economic crisis. The three soon adopted the Euro as their currency to avoid any future liquidity freeze issues that they experienced at that time. The economies al the Baltic rebounded quickly and due to good monetary measures, the three have a very low public debt. Baltic governments have also made swift progress in the Education sector and the three have attained commendable rankings in the Program for International Student Assessment (PISA) of the Organization for Economic Cooperation and Development (OECD). Estonia has done a very commendable task in this area with top 10 rankings in many assessments.  But the Baltics also face many challenges with population loss due to low birth rate and emigration. Proximity and hostility with Russia still is a challenge that the tiny nations have to endure.        

The World of Nepotism

Welcome to the anti-meritocratic world, this world. What are you going to do about it? Will you stand back and watch while cronyism, nepotism, the old school tie, the private club, the right university, the right accent, the right background, the right secret society, the right religion, the right family, destroy merit so that their chosen ones can prosper at your expense. It’s time to smash the conspiracy. Break up all the mechanisms that allow privileged groups within society to rig the system in their favour and penalise anyone who doesn’t belong to their insidious cliques.

Michael Faust, The Meritocracy Party

Well , Its a very complicated questions . In the world, where one’s knowledge didn’t get recognition .

What would you do , when you get acknowledged not on the basis of your knowledge but on the basis of your relation with the owner ?

What would you do , if you don’t get promoted because you are not his /her relative ?

Do you ignore the fact that you are not the one , whom your boss approves?

Well , if you think it’s favouritism than you are absolutely correct . You may also come accross the word NEPOTISM and if you don’t than start reading the passage . (I did as well )

This 8 letter word is destroying everyone in today’s world. And who is responsible for creating such a hypocrite. We the people have to repose this curse and make sure to control it with our coming generations, else it will destroy the whole world. And there’ll be no humanity left in this world” –

Ikramul Hannah.

Introduction

Nepotism is a the practice among those with power or influence of favouring relatives or friends, especially by giving them jobs.

Nepotism is generally defined as “the bestowal of patronage by public officers in appointing others to positions because of blood or marital relationship”.

Nepotism is found in almost all the fields but it is practiced most in business, politics, sports and entertainment sectors. It has been in practice since time immemorial, but some special cases have made it to the limelight in the past few decades.

Nepotism in India :

India has it’s fair share in the field of NEPOTISM . Well , have you ever expected that . I say , YES . Because being one of the largest country , people might become more thirsty for power . “When constantly reaching out for more, you forget what you have” Christine Szymanski.

Nepotism can be characterized as ‘the demonstration of utilizing force or impact to get out of line preferences for individuals from one’s family’.

You must be conflicted , why does nepotism exist even today ? We are living in 21st century , than why we have such orthodox thinking ? Who says no one can define what is going on in one’s mind ( well I say , isn’t is obvious ) .

From the politics to the Entertainment , from the owner to the customer, from the Bollywood to the Judiciary ; Nepotism is everywhere .

Like in OJO -MOJO , After the submission of writing competition , OJO’s class teacher asked him who wrote better . Is it MOJO or OLLY , what do you think whom he would choose . MOJO thinks OJO will choose OLLY because he likes her . But when the result announced MOJO was astounded because OJO choose MOJO’s writing . So , what do you think is it nepotism or not . Think and you will know the answer .

Bias has become the first qualification to join a party, and extreme bias the virtue to become a leader.

Link

Health Infrastructure in India

The pandemic has shown that India’s healthcare system is lacking on multiple ares and calls for a rework by all stakeholders. Government expenditure on health, demand-supply mismatch, and chronic shortages are just some of the problems.

In 2020-21, India spent 1.8% of its gross domestic product (GDP) on healthcare. With ‘health and well-being’ one of the six pillars of the Union Budget 2021-22, the government has committed approximately 2.5-3% of GDP now. Data shows that India has 1.4 beds per 1,000 people, 1 doctor per 1,445 people, and 1.7 nurses per 1,000 people. According to the World Health Organization (WHO), India ranks 184 out of 191 countries in health spending. The US spends over 16% of its total GDP on healthcare, while Japan, Canada, Germany etc. spend over 10% of their GDP on healthcare.

How have facilities coped with the pandemic?

Badly. The capacity of the healthcare system has been stretched to its limits with critical shortages of hospital beds, oxygen concentrators, life-saving drugs, medical supplies, disease surveillance etc. With urban India struggling to counter the onslaught of the second wave of covid-19, rural India’s threadbare healthcare system stands even more stressed.

On April 9, Harsh Vardhan said the country had “substantially ramped up” hospital infrastructure, with 75,867 ICU beds and 255,168 oxygen beds. But going by the crisis across states, these numbers seem inadequate. Public health experts say the Centre and the states must now work together to quickly add more beds, ICUs and ventilators and also open temporary Covid facilities. They must ensure uninterrupted supply of medical oxygen. Several states have launched online tracking of hospital beds, but these often fail to display real-time data, leading to harassment of patients. For milder cases, the district administrations can open home care facilities with regular tele-monitoring so that the load on hospitals can be reduced.

Does poor healthcare impact the economy?

At a micro level, increased expenditure adversely impacts savings and consumption levels. Reduced consumption leads to reduced demand, disincentivising producers to invest more in capital formation. In case of firms, poor health conditions impact physical and mental ability, worker turnover, and attendance, leading to lower productivity. At a macro level, lower economic efficiency results in lower production relative to inputs employed, leading to lower economic growth and reduced income generation.

What is needed to improve healthcare?

India is in desperate need of an all-encompassing public healthcare system. The need of the hour is to have a regulator who can work with states and ensure that the focus shifts to affordable health-care, availability of more health-care professionals, well-equipped facilities, and disease prevention instead of disease management. Inequity among states in terms of facilities needs to be minimized. The Centre needs to aim for 100% health insurance coverage.

Government Initiatives

Some of the major initiatives taken by the Government of India to promote Indian healthcare industry are as follows:

  1. In March 2021, various states and UTs started implementation of the ‘Intensified Mission Indradhanush 3.0’—a campaign aimed to reach those children and pregnant women who were missed out or have been left out of the routine immunisation programme due to the COVID-19 pandemic. This is aimed to accelerate the full immunisation of children and pregnant women through a mission mode intervention.
  2. In March 2021, the Parliament passed the National Commission for Allied, Healthcare Professions Bill 2021, which aims to create a body that will regulate and maintain educational and service standards for healthcare professionals.
  3. In the Union Budget 2021, investment in health infrastructure expanded 2.37x, or 137% YoY; the total health sector allocation for FY22 stood at Rs. 223,846 crore (US$ 30.70 billion).
  4. The government announced Rs. 64,180 crore (US$ 8.80 billion) outlay for the healthcare sector over six years in the Union Budget 2021-22 to strengthen the existing ‘National Health Mission’ by developing capacities of primary, secondary and tertiary care, healthcare systems and institutions for detection and cure of new & emerging diseases.
  5. In Union Budget 2021-22, the government announced its plans to launch ‘Mission Poshan 2.0’ to merge ‘Supplementary Nutrition Programme’ with ‘Poshan Abhiyan’ (Nutrition Mission) in order to improve nutritional outcomes across 112 aspirational districts.
  6. The Government of India approved continuation of ‘National Health Mission’ with a budget of Rs. 37,130 crore (US$ 5.10 billion) under the Union Budget 2021-22.
  7. In the Union Budget 2021, the Ministry of AYUSH was allocated Rs. 2,970 crore (US$ 407.84 million), up from Rs. 2,122 crore (US$ 291.39 million).

Disinvestment

Disinvestment is the action of an organization or government selling or liquidating an asset or subsidiary. Absent the sale of an asset, disinvestment also refers to capital expenditure (CapEx) reductions, which can facilitate the re-allocation of resources to more productive areas within an organization or government-funded project.

The government undertakes disinvestment to reduce the fiscal burden on the exchequer, or to raise money for meeting specific needs, such as to bridge the revenue shortfall from other regular sources. In some cases, disinvestment may be done to privatise assets. However, not all disinvestment is privatisation. Some of the benefits of disinvestment are that it can be helpful in the long-term growth of the country; it allows the government and even the company to reduce debt. Disinvestment allows a larger share of PSU ownership in the open market, which in turn allows for the development of a strong capital market in India.

Are disinvestment and privatisation related?

The government, whenever it so desires, may sell a whole enterprise, or a majority stake in it, to private investors. In such cases, it is known as privatisation, in which the resulting ownership and control of the organisation does not rest with the government. The government usually avoids doing this. The government mostly retains more than half of the stake in the public sector enterprise so that the control remains in its hands. But when it doesn’t, then the ownership is transferred to the private sector, which results in privatisation. It is also known as majority disinvestment or complete privatisation wherein 100 per cent control goes to the private sector.

Impact of Disinvestment on Indian Economy

Public sector undertakings were established in India as a part of mixed economy with the objective of providing necessary infrastructure for the fast growth of economy & to safeguard against monopoly of industrialist community. However, the entire mechanism did not turn out as efficient as it ought to be, all thanks to the prevailing hierarchy and bureaucracy.

To illustrate the trailing scenario, the average return on capital employed (ROCE) by PSUs have been way too low as compared to the cost of borrowing. For instance, between 1940 and 2002, the average ROCE was 3.4% as against 8.6% average cost of borrowing. PSE survey by NCAER shows that PAT has never exceeded 5% of sales for or 6% of capital employed. The government pays a higher interest though, by at least 3 percentage points.

As per an NCAER study report the cost structure of PSEs is much more than the private sector (the following table shows a comparative scale) :

Lack of autonomy, political interference, nepotism & corruption has further deteriorated the situation. For instance, the head of a PSU is appointed by the Government, who in turn appoints all employees who play major roles in the organization. So directly or indirectly the Government itself controls the appointment of all manpower in these organizations. It is not the business of the Government to do business, i.e. it is best controlled by experts and professional managers.

To address operational inefficiencies in PSEs without comprising on their social objectives, disinvestment policy is often used. However, there are concerns regarding the extent of impact on firm performance since disinvestment may involve transfer of ownership but not control. Analysing data from 1991-2010 on all manufacturing PSEs owned by the central government, this column shows that the average annual efficiency score of disinvested enterprises rose by almost 20%.

Public sector enterprises (PSEs) have an indistinct mandate of meeting objectives beyond the narrow paradigm of profit maximisation. Generating employment, investing in projects that have long gestation periods, setting up operations in certain locations, and regulating prices of some of their products, are some of the objectives that may fall under the social ambit of PSEs. When this multidimensional mandate is combined with an environment free of competitive pressure, PSEs may suffer from operational inefficiencies. To address this inefficiency without compromising on the social objectives that PSEs are expected to achieve, minor disinvestment may be a useful remedial policy.

Implications of Disinvestment on Indian Economy

Disinvestment will be extremely positive for the Indian equity markets and the economy. It will draw lot of foreign and domestic money into the markets. It will allow PSU to raise capital to fund their expansion plans and improve resource allocation in the economy. It will allow the government to stimulate the economy while resorting to less debt market borrowing. Private borrowers won’t be crowded out of the markets by the government and will have to pay less to borrow from the open market. Disinvestment will allow government to have much better control over the market economy without upsetting norms of market behavior.

In future disinvestment will assume the role of a major instrument of policy intervention by government as 48 PSUs listed on BSE as of February 8, 2010, account for close to the 30% of the total market cap of the exchange. This is significant as a total of 4,880 odd companies were listed on the exchange. As of February 8, 2010, the BSE PSU index had a total market cap of Rs 17,14,466.96 crore.

Bandwagon Effect

What Is the Bandwagon Effect?

The bandwagon effect is a psychological phenomenon in which people do something primarily because other people are doing it, regardless of their own beliefs, which they may ignore or override. This tendency of people to align their beliefs and behaviors with those of a group is also called a herd mentality. The term “bandwagon effect” originates from politics but has wide implications commonly seen in consumer behavior and investment activities. This phenomenon can be seen during bull markets and the growth of asset bubbles.

Understanding the Bandwagon Effect

The bandwagon effect arises from psychological, sociological, and, to some extent, economic factors. People like to be on the winning team and they like to signal their social identity. Economically, some amount of bandwagon effect can make sense, in that it allows people to economize on the costs of gathering information by relying on the knowledge and opinions of others. The bandwagon effect permeates many aspects of life, from stock markets to clothing trends to sports fandom.

Politics

In politics, the bandwagon effect might cause citizens to vote for the person who appears to have more popular support because they want to belong to the majority. The term “bandwagon” refers to a wagon that carries a band through a parade. During the 19th century, an entertainer named Dan Rice traveled the country campaigning for President Zachary Taylor. Rice’s bandwagon was the centerpiece of his campaign events, and he encouraged those in the crowd to “jump on the bandwagon” and support Taylor. By the early 20th century, bandwagons were commonplace in political campaigns, and “jump on the bandwagon” had become a derogatory term used to describe the social phenomenon of wanting to be part of the majority, even when it means going against one’s principles or beliefs.

Consumer Behavior

Consumers often economize on the cost of gathering information and evaluating the quality of consumer goods by relying on the opinions and purchasing behavior of other consumers. To some extent, this is a beneficial and useful tendency; if other people’s preferences are similar, their consumption decisions are rational, and they have accurate information about the relative quality of available consumer goods, then it makes perfect sense to follow their lead and effectively outsource the cost of gathering information to someone else.

However, this kind of bandwagon effect can create a problem in that it gives every consumer an incentive to free ride on the information and preferences of other consumers. To the extent that it leads to a situation where information regarding consumer products might be underproduced, or produced solely or mostly by marketers, it can be criticized. For example, people might buy a new electronic item because of its popularity, regardless of whether they need it, can afford it, or even really want it.

Bandwagon effects in consumption can also be related to conspicuous consumption, where consumers buy expensive products as a signal of economic status. 

Investment and Finance

Investing and financial markets can be especially vulnerable to bandwagon effects because not only will the same kind of social, psychological, and information-economizing factors occur, but additionally the prices of assets tend to rise as more people jump on the bandwagon. This can create a positive feedback loop of rising prices and increased demand for an asset, related to George Soros’ concept of reflexivity.

For example, during the dotcom bubble of the late 1990s, dozens of tech startups emerged that had no viable business plans, no products or services ready to bring to market, and in many cases, nothing more than a name (usually something tech-sounding with “.com” or “.net” as a suffix). Despite lacking in vision and scope, these companies attracted millions of investment dollars in large part due to the bandwagon effect.

Causes for the Eurozone crisis of 2008

The European debt crisis started in 2008 when many European countries were not able to refinance their government debt or bail out over-indebted banks of their country without the supervision of third parties like the European central bank (ECB), other countries and the International Monetary Fund (IMF). Portugal, Italy, Ireland, Greece and Spain had to some degree failed to generate enough economic growth to pay off bondholders.

There were many reasons behind why the European debt crisis occurred. One of the main reasons was because of the common currency of Europe, the Euro.

Every member of the EU shared the Euro and also had similar monetary policies. But each country had control over its own fiscal policies that decided government borrowing and spending. Because of this, countries like Portugal and Greece kept borrowing and spending and soon, it went out of control. Large amounts of debt began to build up. This was the structural problem of having a common currency for multiple countries but not having rules on forming their respective fiscal policies.

The second cause was the Global Financial Crisis in 2008. Because of this, Industrial production fell and financial institutions plummeted. This discouraged investors. The cost of borrowing also increased as investors demanded more interest. Hence, Greece struggled to keep up as they relied heavily on debt. Their GDP decreased by almost 7% and output fell by 16%.

Third, strict restrictions slowed economic growth. Unemployment was increased, consumer spending was reduced and also reduced lending capital. There were also no penalties for violating debt to GDP ratios that were set up by the EU. This was because it was believed that the only penalty possible was exclusion from the EU and this would lead to a fall in the value of the Euro itself.

Another cause was the increasing central government debt and the high cost of borrowing coupled with the failing financial system. Greece’s debt became 113% of their total GDP and needed countries like Germany to bail them out and pay their creditors. Soon, Spain, Ireland and Portugal also needed bailouts.

Lastly, many of the EU countries had large trade imbalances which contributed heavily to the crisis as a whole. Germany was the only country with a good debt and fiscal deficit situation. Countries like Italy, Spain and Portugal had a large fiscal deficit and an even worse balance of payment position. Some countries went to the World Bank and International Monetary Fund for assistance as they were very financially stable. Amidst all this, the Euro was devalued to boost exports in hopes of helping economic recovery. However, what this did was worsen the debt situation as it increased the dollar value of the existing debt.