Category Archives: Economics

Do You Know February Economic events ?

Some useful economics From February 2016

India,the emerging economy playing the marvelous role in boosting the international Integration,to boost and perform with ease of doing business in Feb 2016 was the month where many economic activities got carried out.The role of Government is always pioneer in the development as the every ministry of it doing smart increase in the policies ,minimizing the loopholes,leakages through various technological advancement.some terms,policies,facts came in the focus and the vision explained further


Read More –Analysis-India rejected U.S research ,claim on less life expectancy by 6 years due to air pollution


Terms-

1)Sweat equity -Sweat equity is a party’s contribution to a project in the form of effort and toil, as opposed to financial equity such as paying others to perform the task.Recently TAPAN RAY PANEL recommended  ,allowing start-ups 50% of the paid capital in sweat equity against the 25%

2)Bulk Drug-    Active raw drug material used in the drugs used by pharmaceutical companies

3)Market economy status-   A market economy is an economic system in which economic decisions and the pricing of goods and services are guided solely by the aggregate interactions of a country’s citizens and businesses and there is little government intervention or central planning.Recently china being granted from Dec 2016 .

4)Non-Tax Revenue E-portals-  Important under Digital India campaign. Launched by finance ministry to collect online non tax payments by credit card /debit cards/net banking.Non Tax such as -dividends spectrum charges,royalty ,licence fees sale of forms under RTI.

5)social banking- In Social Banking, the focus is on satisfying existing needs in the real economy and the society whilst simultaneously taking into account their social, cultural, ecological and economic sustainability.

6)Unified Payment Interface-P2P transaction from any bank account by the people by the mobile phone application. Launched by NPCI and Ispirit. Uses IMPS (Immediate Payment Service).


Read More –The Economics Of a Girl Child-GAURAV AGRAWAL (IAS)


Policies-

  • National capital Goods Policy – launched to boost capital goods sector and Make In India.improving ease of doing business ,minimizing the issues,maintaining the proper business environment etc
  • Draft Bulk Drug Policy-   Department Of pharmaceutical ,based on  katoch committee ,aims- soft loans to economy ,six large Active Pharmaceutical Ingredients (API),Research and development Investment,tax benefits and import duty exemption.

Some Facts-

  1. wind energy is the largest renewable source in India.
  2. JNNSM aims to generate 1,00,000 MW of solar power by 2022.

Vision

The vision of the government is very clear towards the sustainable development of the economy ,though many hazards like natural calamities exist the stability always work for them.The necessity of people participation can never be neglected for achievement of the economical goals .

Read More –

Judiciary And Excecutive -India

Would You like to practice answer writing  for free Click here

 

Advertisements

The Economics of a Girl Child-Gaurav Agrawal (IAS)

After Amir Khan talked about it on his show Satyamev Jayate the issue of saving the girl child caught the public imagination. The government machinery swung into action and within no time numerous …

After Amir Khan talked about it on his show Satyamev Jayate the issue of saving the girl child caught the public imagination. The government machinery swung into action and within no time numerous advertisements were issued by the governments in newspapers. An example of such advertisements is shown below.
Many facebook pages came up like this using particularly touching pictographic material.

What do we infer from such advertisements / initiatives apart from the fact that obviously the girl child is in danger? These advertisements / initiatives seek to ‘increase the awareness’. They want to make people aware of how important the girl child is. However, the point to be noted here is that they depict the importance of the girl child to the society in general and not to the particular parent. It is this dynamics of the importance of the girl child to the society vis a vis the parent which we will explore in greater detail here. Then the government initiatives largely end here i.e. with the advertisements. True there are many schemes seeking to incentivise the birth of a girl child and laws penalising foeticide, but these are simply haphazard in planning and lax in implementation. Is this sufficient or is there an inherent drawback in this strategy?

Let us examine this issue in greater detail.

The Society versus the Individual

The girl child in current context is clearly a valuable asset to the society. Its simple, we need more girls to restore the gender balance. The other reasons – I needn’t even go into them as they are so well known.

Anyways, the point however is that to a parent, a girl child is a cost. She has to be fed (and hopefully educated) through her childhood and when the time comes to reap the benefits of this investment, she has to be married off and sent away. Her benefits flow to some other family. And not to mention the steep costs of the marriage. Thus to an individual parent couple, a girl child is a loss making proposition.

In other words, the girl child has large positive externalities. (A positive externality is a situation when the benefits of a commodity overflow to the society and can’t be limited to the buyer only. So the buyer derives less benefits and hence pays less. So the production will always be less than the socially desirable level.) In such a condition, left to its own, the society will never produce enough girl children (because producing a girl child is a loss making proposition for the parents so why should they produce a girl child). This is a classic case of market failure and hence we need the government to step in.

Returning to the spreading awareness initiatives, we can now question the effectiveness of this strategy. Are girls being killed really because people don’t know how important they are to the society? No sir no, even if all of us are educated to the highest levels, we will still never produce girl children to the socially needed level. Because the economics of a girl child simply doesn’t make any sense.

Then will reducing the expenses of marriage and dowry address the problem? Well it will certainly increase the number of girls (because the costs of a girl child are now less) but it will never produce the socially needed number of girls.

Will increasing penalties for pre natal sex determination tests help? Certainly it has the potential to correct the imbalance. But that will require a very high level of surveillance. Its biggest weakness is that it is a coercive method and tries to solve the problem without correcting the underlying market economics which gives birth to the problem in the first place.

This brings us to the question that what will work… The economics of the girl child is wrong and clearly we must correct the economics if we are to make any headway. In case of a girl child, marriage and subsequent migration is inevitable. So either we try to change the culture where traditionally the parents can’t live on the daughter’s earnings and daughters start to live with their parents only instead of migrating like the sons or we try to enhance the ‘earning power’ of the girls before they get married.

Changing the former may be a very slow process.. So the government must intervene to enhance the pre-marriage earning power of the girls instead of merely try to ‘spread awareness’. A very good case here is that of Bangladesh where each school attending girl is allowed to carry a bag of rice home every month. And believe it or not, Bangladesh performs better than India on almost all gender related indices. So enough of talk or giving fifty rupees as incentive to BPL citizens on each girl born. We need to correct the economics here.

Source: The Economics of a Girl Child