Learning Knowledge for Effective Performance Essay

It instills organizations with new ideas and information which is a essential component of learning organization. Peter Senge’s 5 disciplines are essential for a learning organization. Systems Thinking is the crucial discipline which brings all the other factors together into a balanced theory and practice. Figure 1: The 5 Basic disciplines of a learning Figure 2: â€Å"The Fifth Discipline† by Peter organization Senge It allows organizations to see the big picture and differentiate learning patterns within the organization. Using this principles, organizations can work with a system to create solutions to challenging problems in every field as Senge believes that current problems are results of solutions that were applied in the past. Systems thinking involve learning to distinguish general behaviours and create new ones to familiarize with special terms and tools that aid decision making and also allow employees to participate in decision making. It also helps managers to detect repetitive patterns such as common ways of solving problems, present goals and policies that restricts the growth of the organization. It is similar to single-loop learning. Although it takes time to be implemented, it promises a wide range of benefits to companies and improve overall achievement (Delio, 1998). Toyota For example, TPS (Toyota Production System) is an approach created by the founder of Toyota, his son and his engineer that manages logistics, manufacturing and interactions between customer and supplier. TPS was created to bring consistency to the system and enable an effective production process, which eliminates waste. As a result, TPS worked well and has increased production and improved quality of cars. The system has made what Toyota is today: a leader in the automotive manufacturing and production industry.   Personal mastery is the discipline that describes personal growth and learning. Individuals who have a high degree of personal mastery are continuously seeking learning opportunities because they â€Å"are acutely aware of their ignorance, their incompetence and their growth areas† (Senge, 1990). Their self-improvement and self-discovery abilities motivate a learning organization as they are self confident and have great commitment and responsibility towards work. Personal mastery allows one to distinguish what is important and picture the real world more clearly. Therefore, managers must help to create the environment to change by creating an atmosphere that promotes personal mastery within organization where employees should feel comfortable to create personal visions. Managers who are serious in delivering personal growth will send a powerful message to his or her employees. Disney At Disney, successful films are not made only from the ideas of managers. In fact, the top management attends an event called ‘Gong Show’ three times a year where an employee at any level is encouraged to throw ideas and story lines. Employees at Disney feel comfortable to create their personal vision. Managers then respond immediately and reward the employee. The results would be an extraordinary concept of animated film.   Ã¢â‚¬Å"Mental models are deeply held internal images of how the world works, images that limit us to familiar ways of thinking and acting† (Senge, 1990). Mental models are the way how one sees things, learn and react to situations on a daily basis. Generally, people do not do what they say but they behave according to their mental models. Mental models are very important in an organization because it is relates to consequences that occur. It is rather difficult to develop systems thinking if mental model is fixed in past experiences. For example, a manager will find it difficult to handle with interpersonal problem in the organization if he or she has a different perception on an employee. Many organizational learning fail when managers ignore the power of mental models. When managers in an organization develop the ability to work with mental models, it will be necessary for employees to learn new skills and orientations. Both systems thinking and mental models fit together as systems thinking concentrates on how to modify assumptions in order to show causes of problems and mental models look at revealing our hidden assumptions (Taggart. J, 2009). Therefore, it is worthless for managers to engage in systems thinking until their mental models change. Apple Japan Apple introduced the concept of learning organization into their workplace. Apple was advised to embark upon the Five Disciplines which are important to a learning organization. Each employee had a mental model of the way the organization operates. The learning process was more efficient when each employee’s mental model was brought in-line with the rest. Managers at Apple also encouraged Personal Mastery to staffs to place reasonable goals. The essential discipline was Systems Thinking, where it facilitated each employee to make decisions, taking the whole system into account, instead of analyzing specifically on their own problems. All the 5 disciplines were implemented through a program of education and it marked improvement in sales and growth. (Adapted from: Case Studies of the Learning Organization, n. d. ) SHARED VISION Senge’s (1990) shared vision is not an idea but a deeply embedded belief shared by many that provides focus and is a vital part of generative learning. Shared vision is derived from personal vision. Therefore, managers should encourage employees to develop personal vision so that organization’s vision succeeds as both vision are engaged. It provides the focus and energy for learning making it an important component of a learning organization. Shared visions encourage new ideas and concepts within organization while encouraging experimentation. Senge claims that managers should understand that their high position in an organization does not mean that their personal vision is also the organization’s vision. Although visions are mostly visualized by top management, it is not consider a shared vision until others in the organization connect it with their personal vision. General Motors In General Motors (GM), a group of executives decided to implement a new approach in automobile manufacturing as well as a new friendly working environment. Pfeffer and Sutton (2000), discuss creating an organizational learning environment with a shared vision in a case study based on Saturn. The Saturn employees were labeled as risk takers. Later, these staffs sought and embraced a systemic change in Total Quality Management . As a result, Saturn developed into a successful car company due to its shared vision among employees. TEAM LEARNING Team learning is where a group of people work together to create results that they truly desire. Team learning is built on the discipline of personal mastery and shared visions but these alone are not enough to act wholly. Team learning involves two primary ways of communication among members which are dialogue and conflict. These are essential ingredient for learning. Dialogue among members in a team creates a language that helps deal with difficult situations and focus on structural issues. It helps members to learn how to recognize the patterns of interaction which provides an opportunity for members to interact with one another and discover possibilities. Conflicts is a norm in team and teams must know how to deal with disagreements well. A well handled conflict is important in a team as t often leads to effective brainstorming and problem solving matters. According to Senge, 1990 â€Å"the difference between great teams and mediocre teams lies in how they face conflict and deal with the defensiveness that invariably surrounds conflict. † General Electrics An example here is Jack Welch, CEO of General Electrics ( GE) came up with a solution call the Work-Out program to ‘clean upâ€℠¢ GE and improve productivity. It got every employee to get involved in challenges and problems. It has adapted a learning culture among employees which make GE a learning organization. As a result, GE increased its market share from $13 billion in 1981 to $500 billion in 2000. Figure 3: The Work-Out program implemented in 1981 increased Market capitalization by $487 billion.   Figure 4: Kolb’s Cycle of Experiential LearningDEFINITION Concrete experienceConcerned with something that has happened to you or that you have done. Concerned with adopting your new ideas into practice. Reflective ObservationConcerned with reviewing the event or experience in your mind or exploring what you did and how you, and others feel about it. Abstract ConceptualizationConcerned with developing an understanding of what happened by seeking more information and forming new ideas about ways of doing things in future. Active ExperimentationConcerned with trying out the new ideas as a result of the learning from earlier experience. Table1: Brief definitions of Kolb’s cycle of Experiential Learning. Figure 4 and Table 1 adapted from ‘Reflection on and in the workplace by L Allin and C Turnock, 2007. One may begin at any stage, but must follow each other in the sequence: †¢concrete experience (or â€Å"DO†) †¢reflective observation (or â€Å"OBSERVE†) †¢abstract conceptualization (or â€Å"THINK†) active experimentation (or â€Å"PLAN†) Kolb, an American educational theorist explains how experience is translated through reflection into concepts, which is then used as a guide for current and new experimentation. This can be applied in the several forms of informal and formal learning in the organization where learning becomes more effective as employees gets hands on experience on the knowledge they have gained. It also improves performance at workplace and influences the behavior of the learner and as such employees can enhance their performance as they are able to understand and learn better. Learning increases ability to contribute to the organization’s success. It also contributes to a better understanding, increases communication, improves quality of decision making within organization. Organizational learning is essential for innovation ( Laundry, 1992). Innovation is vital for organizations to survive in the competitive world today. Organizations are required to think out of the box and practice continuous learning to remain top in the market. Organizational learning has affected performance of individuals as well as organization as a whole in a positive way. Most firms these days are categorized as learning systems. Organizations such as Fiat, Toyota, Motorola and a few others have improved tremendously after learning took place. They had both formal and informal ways of knowledge acquisition, sharing and implementation of knowledge and skills. Motorolo today is a well developed organization because of its learning processes and culture where employees are fully committed to total quality management. Organizational learning fosters a great opportunity for meeting goals, visions and values. Here, a manager plays a huge role not only as a charismatic leader but also as a motivator that guides employees towards change, shapes the design and structures of the organization and overall creates a positive impact on the organization. The factors that add to effective performance through organizational learning are the skills developed by employees, resources that are available in helping them learn, reward system given by employers, environment and culture. Competitive advantage is a strength a company has over their rival firms. It is an bility to operate at minimum cost, produce quality goods, and invest in Research and Development. Through organizational learning, a firm can develop the necessary knowledge that is vital for effective performance. Intrinsic knowledge can also be applied in organizational learning. Intrinsic knowledge is the knowledge which resides within the organization in terms of work relationships, attitudes and behavior. They are difficult to transfer f rom one to another. Employees in a company which has developed strong intrinsic knowledge will be able to use them in the operations and gain productive performance. It will help them to show a higher proactive personality together with commitment. It becomes a competitive advantage to the firm as it will be hard for competitors to follow. Federal Express’s efforts and approach of investing heavily on team learning among employees has enhanced quality and gained success. It is the ability of the firm to practice continuous learning that made it what it has become today. Although learning is a slow process, once initiated, it feeds on itself and will continue to grow and improve efficiency of employees. Today, more organizations are realizing the importance of learning to be successful in their respective markets. Knowledge within learning organizations must be discovered and shared among employees so they can work in a team to enhance problem solving, decision making and response to challenges. Therefore, managers in organizations should take the necessary steps to shift from organizational learning to a learning organization. Organizations such as Totoya, GE, Disney and others are clear examples of how learning efforts have helped these firms to achieve high performance and compete against competitors in the 21st century.

Fgm Paper

Jacob Rand FGM Paper 1 October 2, 2012 Dr. Collins Arizona State University Female genital mutilation (FGM) is to this day a current issue in many societies and cultures. The World Health Organization (WHO) defines female genital mutilation as â€Å"all procedures that involve partial or total removal of the external female genitalia, or other injury to the female genital organs for non-medical reasons. † In this paper I will argue that female genital mutilation is an antiquated and unseemly practice and should be promptly discontinued.Nussbaum draws from first-hand experiences of victims in order to provide first hand evidence of the exact feelings, routines, and positions that people (mostly women) in the main countries in which FGM is practiced. Nussbaum dispels the obvious argument of her position being considered â€Å"ethnocentric† by engaging in the overall health concerns and issues that the act of FGM can cause women. In this way she criticizes the way in which FGM can affect women both physically and psychologically, rather than its place in their cultures. Similar article: Corporate CommunicationsShe mentions examples of people living in countries in which FGM is illegal that are opposed to FGM, and fought for their children’s right to choice and consent, though it is the cultural norm. To summarize, Nussbaum’s position on FGM is plain and simple: FGM is a problem and that something needs to be done about it, namely through education and the enforcement of laws, which are in most cases, are already in place.FGM is, according to WHO, said to have been performed in one of three commonly practiced ways on between â€Å"approximately 85 and 115 million women† The three types of afore mentioned genital mutations are as follows: â€Å"Clitoridectomy, a part or the whole clitoris is amputated†¦ In excision, both the clitoris and the inner lips are amputated†¦ In infibulation, the clitoris is removed, some or all of the labia minora are cut off, and incisions are made in the labia majora to create raw surface. T hese surfaces are either stitched together or held in contact until they heal as a hood of skin that covers he urethra and most of the vagina. † These gruesome amputations are made worse by the fact that they are generally performed with no anesthetic, local or otherwise. Additionally the conditions in which they are performed are by no means clean, and the tools used to perform such operations are sharpened rocks or razorblades, though there is not usually a means to sanitize them. Bringing an end to FGM is in no more ethnocentric than treating AIDS in countries that have to means to treat their citizens.It is a cruel and unusual punishment that is masked as being a procedure of purity. The pain alone is reason enough not to perform FGM on young girls, let alone the extreme risk of infection or even death, not to mention the long-term life altering effects it has. â€Å"Infection, hemorrhage, and abscess at the time of the operation; later difficulties in urination and menst ruation; stones in the urethra and bladder due to repeated infections†¦ infertility, obstructed labor and damaging rips and tears during childbirth. Of the effects suffered by women who undergo FGM, none are complications that a man would even remotely suffer from circumcision. Male circumcision is the cutting of the foreskin and while painful, as any surgical procedure surely is, is often done on babies before memories of such an event can be performed. While more often than not, performed without consent, circumcision has religious roots, specifically in Judaism. â€Å"Male circumcision is one of the oldest and most common surgical procedures worldwide, and is undertaken for many reasons: religious, cultural, social and medical. Additionally there are benefits to male circumcision, â€Å"there is conclusive evidence from observational data and three randomized controlled trials that circumcised men have a significantly lower risk of becoming infected with the human immunode ficiency virus (HIV). † Male circumcision counters FGM, as there have been no positive qualities found. Though male circumcision does not generally achieve consent from the men that it is performed on, it can be beneficial The practice of FGM dates back centuries with no clear beginning and zero benefits to the women it is performed on.Though with enough exposure to the health risks and dangers, sexual equality, as well as the enforcement of, and in some cases stricter laws, FGM could one day become an ultimately antiquated practice with little to no hold on the world. ——————————————– [ 1 ]. http://www. who. int/mediacentre/factsheets/fs241/en/index. html [ 2 ]. May, Larry, Kai Wong, and Jill Delston, eds. Applied Ethics: A Multicultural Approach. 5th ed. New Jersey: Prentice Hall, 2011. Pg. 13) [ 3 ]. May, Larry, Kai Wong, and Jill Delston, eds. Applied Ethics: A Multicult ural Approach. 5th ed. New Jersey: Prentice Hall, 2011. (Pg. 13) [ 4 ]. May, Larry, Kai Wong, and Jill Delston, eds. Applied Ethics: A Multicultural Approach. 5th ed. New Jersey: Prentice Hall, 2011. (Pg. 14) [ 5 ]. http://www. who. int/reproductivehealth/publications/rtis/9789241596169/en/ [ 6 ]. http://www. who. int/reproductivehealth/publications/rtis/9789241596169/en/

A comparison of two media articles Essay

The Daily Express and The Independent write about the same event, England’s 2-0 victory over Greece in one of England’s world cup qualifier matches. It is obvious from looking at the articles that they are set out and written differently, this is because of their target audiences. The Independent is a more formal newspaper in A2 size, aimed at the more educated person. It is generally read by people in the social groups of A, B and C1, this includes people such as doctors, policemen and other such skilled workers. The Daily Express however is a much less formal newspaper, in A3 size, its target audience are people who are generally less educated and belong in the social groups of C1 and C2, people like builders, receptionists and other unskilled workers. The Daily Express’ article dominates the entire back page with very little else but a small sub article and some small adverts, the Daily Express sets it out in this way to attract its readers to the paper and article, it is bold and stands out. The Independent is different in this as the article takes up roughly half of the page, with enough room to have another article on the same page this is because of its much larger page. The Independent does not use big bold headlines or make it to try and attract the reader into the story; instead they set the article out in a more professional form making it look elegant and neat. This is done as The Independents readers do not want to be enticed into reading an article just because it looks attractive and stands out, they will read what is of interest to them and for content of the story. The Daily Express however uses the bold headlines and dominating layout to attract it’s readers into the article and paper. The Daily Express includes two pictures in its article, one for the main article of the match and the other one shows the gossip of the match. The Daily Star does this as their readers like pictures to attract them to the story and also like to read about the gossip as well, in this case the bottles being thrown at David Beckham’s head. The picture for the main article that the Daily Star chooses to show is that of David Beckham celebrating his goal, however they have blocked everything else out of the picture and just have David shown with a bold black outline. The picture is laid out across the page in an untidy fashion making it bolder and more attracting to its reader. This is done as the readers of the paper recognise David as a big celebrity and so want to read what is said about him. The Independent however is very different it has only one picture; it dominates the article but is set out in a square as a neat part of the article. The picture is the same as Daily stars however it is much broader as it shows more than just David Beckham; it is left showing us the stadium and the crowd’s celebrations. The chooses to do this as its readers prefer a much more in depth view as to what has happened when reading their articles, with this they can see the sort of atmosphere there would have been in the Stadium. The Daily Express uses a type of language typical of most tabloid newspapers, but not usually seen in broadsheet newspapers; puns, a play on words. The Daily Express uses pun in the headline of its article which focuses solely on David Beckham. The headline is â€Å"Haircules†, deriving from the ancient Greek God of Hercules, a mighty, strong warrior. The Daily Express has done this as it shows David Beckham as the mighty warrior of the football match. The beginning part â€Å"Her†, has been altered to â€Å"Hair† to apply more to David Beckham and his famous, forever changing hair cut. The Daily Express uses war imagery; the writer uses words, phrases and sentences which compare the football match to a bloody battle or war. The sub header is a great example of this war imagery language with the phrase â€Å"cool under fire†. We would more often than not associate this sort of term with a soldier who had kept his cool whilst being shot at, however in this case it has been changed to describe an aspect of the football match. Also, â€Å"missiles†, â€Å"victory† and â€Å"stoop to conquer† are more war imagery terms which the writer has used to elevate the match and make it seem more exciting. The Independent has not used war imagery as this is a very convincing language, the paper would much rather its readers made up their own minds rather than have them made for them. Sentence Length, sentence structure and sentence variety are another three things which sets these two articles apart. Whereas the Daily Express uses very simple, basic, short sentence structures The Independent uses longer more complex sentence structures which appeal more to its readers. The Daily express does not break down its sentences with punctuation, punctuation is very basic in this article for example, take the opening sentence of each, â€Å"Skipper David Beckham provided the perfect answer to the Greek thugs who targeted him last night with missiles as he curled in the free kick which put the seal on victory in Athens and kept England’s world cup hopes alive†, not a single comma is used to break down that very large sentence. ‘†Bring on the Germans† was the cry from the sunburned, shaven-headed masses in the northern arc of the Spiro Louis Stadium last night and there would not have been a single man in the England dressing room who would disagree’, in this the Independents the sentence is broken down by a quote and comma. Both of the articles input interviews from David Beckham; they are very similar but The Independents comments contain better vocabulary as to appeal more to its readers. The Independent inputs phrases such as â€Å"the importance of maintaining our discipline†, so that the comments appear more intellectual and appeal more to its readers. The Daily Express however writes this comment as â€Å"It was important we kept our discipline†, keeping the phrase more simple, so that it’s less sophisticated readers are not put off by complex language. The independent also contains much more dialogue than the Daily Express, this is because the Independent would like to get across as many view points as possible on the match, so that it’s readers can think for themselves and come to their own decision on the what kind of match the game was. In conclusion both of the articles are effective for their different readers. The Daily Express writes more basically and writes more about gossip and facts to appeal to its lesser educated readers. With bold headlines and the picture of David Beckham the paper is going to sell as it attracts its readers. The Independent is very different, it is much more factual, it’s more educated readers are less interested in the gossip and would rather read the facts. The article contains a lot of dialogue and refrains from using war imagery, presenting different view points enabling the reader to make their own decision on the match.

Credit Scoring and Its Impact Essay Example | Topics and Well Written Essays - 4500 words

Credit Scoring and Its Impact - Essay Example It has an important influence on the interest rate incorporated to the borrowed money. With the significance of credit score, knowing it enables an individual to question the accuracy of the score, and as a result, negotiates the best rates with lenders. A credit score is purchased separately and is not a part of a consumer credit report. One may purchase a credit score from a consumer credit reporting agency, who can charge him/her with a reasonable fee.4 Credit scores are used other than determining whether a person will default on a loan or make late payments. Low credit scores are used by usurers in order to identify individuals whom they believe are likely to make claims on their insurance policies. An accurate credit score can enable interest rates be charged on loans and can make a difference on the availability and cost of insurance.5 Mathematics models are used in calculating credit score, which analyzes the creditworthiness of a person. The amount and types of debt that a person owes are considered by the models. The person's repayment history will then be analyzed alongside thousands of other consumers in the credit store. Important factors that determine a consumer's credit score are his/her previous payment behavior, the amount of money he/she owes, the length of time that he/she has held outstanding credit, the type of credit he/she uses, how much credit is available to him/her, and whether there are inquiries from prospective lenders in his/her file.6 The amount of available credit that a consumer is using is one of the most important factors in his credit score. When credit card companies do not report the credit limits on a consumer's account, the consumer's credit scores can be lower tan they should be. This is because most credit scoring systems substitute the highest balance for the missing credit lim it. Since it will appear that he is using all of his available credit, the borrower's credit score will become lower. Thus, it is important that consumers deal only with credit card companies that report credit limits on their accounts.7 Credit scores have varying meaning. The higher the score, the better the credit rating. Generally, a credit score can vary from 300-850, in which most scores fall within the range of 600 and 700. A sub-prime loan, which is a boundary between a standard loan and a higher cost loan, is generally tantamount to a credit score of 620. An easier time to obtain credit and a likewise ability to obtain it on better terms and at a lower cost is the implication of a higher credit score.8 The credit bureau and a model developer need to validate a model that will be utilized for credit scoring. Developers often perform additional validations on independent samples before releasing a model, in order to be assured of the model's predictive capability.9 Pincetich, et al10 suggests that in order that a credit bureau score may be used effectively, it is important that accounts are analyzed to determine how the score relates to a specific situation, such as delinquency or bankruptcy. Although the scoring logarithm remains the same, the performance related to each score may possibly vary according to user. Hence, a

Occupational Safety and Liability Case Study Example | Topics and Well Written Essays - 500 words

Occupational Safety and Liability - Case Study Example According to the case study, Behavior Based Safety focuses on the behavioral initiatives an employee recruits to ensure they are safe in the workplace. The safety technique and set programs hold the employees accountable for their safety. An employee gets blamed for incidents or accidents that occur when it comes to this form of the safety technique. Engineering controls are defined by the act of creating ways to fix and handle matters pertaining safety. The technique prevents hazards from occurring and re-occurring. In engineering controls, an employee applies ways of protecting themselves from harm, for example, wearing protective gear while at work or handling equipment with extra care. Lack of engineering controls leads to poor safety and exposes the employee to great risks making them vulnerable to fatal and disabling accidents. Management accountability is defined as the participation of an organization’s management level in ensuring safety to its employees. The management of an organization needs to intervene in its employee’s safety by providing protective gear as well as health insurances. The involvement of management in employee safety plays a significant role as it reduces cases of accidents or incidents at the workplace. On the other hand, the absence of the management in the implementation of employee safety leads to poor working conditions. Lack of participation in the management causes ignorance of safety precautions and measures hence making it poor. I support advocates of Behavior-Based Safety. The safety of an employee mostly lies in the personal decision an employee makes to protect their health. An employee bears more knowledge on their health and with or without the presence of the management safety precautions, safety lies in the personal decision of the employee (Hickman, 2007). Before an employee joins an organization, he or she ought to have trained in safety and health precautions under certain fields to maintain and enhance safety in the workplace.  

Applied Portfolio Management Case Study Example | Topics and Well Written Essays - 1250 words

Applied Portfolio Management - Case Study Example It is very significant that no mistake is being made or else it can lead to important losses. Trading systems have several advantages and disadvantages. â€Å"The advantages of trading systems can be hidden when they become associated with trading platforms involving trade order submission and processing.   A clarification of their roles can help explain the benefits of using a trading system.   This can be done without identifying a particular platform or system. Once the platform infrastructure is isolated, a brief look can be taken at why a trader can benefit from a trading system† (Types of Trading System Resources, 2004, para. 4). A good trading system describes when trading must not be attempted, thus preventing forced trading under inconvenient circumstances. It should identify how to independently create a strong watch list of candidate trades to remove the need to chase after the newest hot tip from an advisor. For clear causes, trading systems have easy to use, t ake little of a trader’s time, completely objective and create consistent incomes. It also avoids big draw downs and provides clear trading marks. Once a trading system is reliable in use, extraordinary chances for setting and meeting realistic income goals become obtainable by using a model of accurate money management. A trading method is best learned from a master trader who remains actively busy in teaching. The master can teach the student tailor, the methods to his financial means, personality, skill level and risk tolerance. Another method is to merely read what has been written and adopt it to one’s personal circumstances. The benefit of rule based trading systems lies in its consistency and objectivity. When followed regularly, emotional trading and its connected mistakes are removed from the equation. As a saving, trading systems more than just paying for themselves, not only increases income but also the quantity of capital preserved. 1. Define the trading p lan and system, and must include the following: Trading plan and system can involve any stage of threat and achieve many different savings objectives. A Good trading plan will also give direction on stopping the losses. a. Setup Identification: Setup Identification is very important method of the trading system. There are a lot of actions that we cannot use to any "trading" amount as against "gambling" extent. In other words, if we put on the trade for the reason that you observe the setup, you are trading and if you just go for the action without seeing a setup, you are gambling. b. Trade Execution (entry and exit parameters, trade management). The execution of a command occurs when it is totally filled and not when it is located by the shareholder. When the shareholder places the trade, it goes to an agent who then decides the best method for it to be executed. Trade execution gives marketing and trading staff with tools to powerfully capture and verify financial and physical trad es for energy commodities. c. Position Sizing (money management and asset allocation). Position sizing is the very significant aspect of a trading system. A position sizing model simply tells how much or how big of a position is to be taken. It can be the key factor in deciding whether or not to stay in the game or whether the gains are huge or minimal. Position sizing is the significant method of Money management. Asset allocation is the most significant

Contracts and Leases in Common Law and UCC Essay

Contracts and Leases in Common Law and UCC - Essay Example Normally, a contract is enforced and governed by the laws of the country where it was made. In the United States of America, a contract is governed by two types of state laws, that is, the common law and the Uniform Commercial Code (UCC) (Bagley and Dauchy, 2012). Common law is a law which governs contracts for services and contracts that are not governed by the Uniform Commercial Code. Most contracts such as employment agreements, general business agreements and leases are controlled by common law. Common law contracts can either be bilateral or unilateral. However, the contracts are valid only if the three elements of common law contract formation are met. The elements of formation are offer, acceptance and consideration (Bagley and Dauchy, 2012). The uniform commercial code (UCC) governs the contracts between merchants and the sale of goods. The law was written by the National Conference of Commissioners on Uniform State Laws (NCCUSL) and the American Law Institute (ALI). It was p ublished in 1952 to harmonize the law of sales and other commercial transactions in the United States. Although it has not been fully enacted, some provisions of the code have been adopted by all the fifty states of the US (Fullerton, 2011). Previously, the code was divided into 9 articles; however, after a number of reviews and revisions, the code is now divided into eleven articles with each giving provisions that relate to a particular area of commercial law. Article 1, gives the definitions of terms used in commercial law and the general principles that apply to the UCC. Article 2 covers all contracts pertaining to the sale of goods. Article 2A covers all transactions pertaining to leases of goods. Article 3 covers negotiable instruments such as checks and promissory notes.

MBTI Personal Statement Example | Topics and Well Written Essays - 500 words

MBTI - Personal Statement Example I have a good sense of responsibility whenever environment I am. I consider myself successful in the sense that I accomplish whatever goal I set. In terms of supervision, I can work under very minimum or no supervision at all. I possess a self-initiative and self-driven morale that keep me going and achieving my objectives. I am an optimistic self-reliant person who has good analytical and organizational skills. I am slow in thinking due to my perfectionist nature of doing things. I tend to waste time during preparations than focusing on time factor. My natural character of thinking rationally affects other decisions which are not meant to be thought in the same perspective of thinking. My sense of responsibility tends to differ at certain points and become a weakness because I prefer an impeccable work therefore tend to supervise others a lot to meet my demands. Through my strong attachment to my responsibility I tend to go berserk, through assumption of more responsibilities than I manage. My kind hearted nature, trying to help out with possible solutions to their approach to difficulties, some consider it as an interference to their rights and private life I would fit in a series of job description given my personality attributes and competence. My strong social and sense of judgment highly recommends for social and interactive jobs like Business Administrator and Sales Executive. Some other possible careers are; System Information Analyst, Internal Auditor, Manager at a customer service, and lastly as a Marketer. This test helps me identify strong points; preference of extrovert over introvert by 56%. Strong judgments over perceiving by 78% are qualities that boost my personality to work with others comfortably. On the other hand, this test helps me to know my non-redeeming qualities; I have a moderate preference of Intuition over sensing by 38% and moderate preference of thinking over feeling by 25%. (Jung’s & Briggs,

Ratio and Financial Statement Analysis Essay Example | Topics and Well Written Essays - 1750 words - 1

Ratio and Financial Statement Analysis - Essay Example Concepts that have been used include annuity which is a series of constant cash flows that occurs at the end of each period called a term, perpetuity which is a financial asset that does not have a maturity period but keep making payments indefinitely, compounding which is finding the future value of one or more cash flows, discounting which is determining the present value of one or more future cash flows. Financial decisions are made based on future value or present value. Future value is what one or more cash flows are worth at the end of the period while the present value measures the worth of one or more cash flows to be received in the future are worth today. The effective annual interest rate which is the annual growth rate that takes into account compounding. These concepts are fully covered in the paper while handing the questions. Financial management ratios are an area of expertise that every manager in any financial position should get acquainted with. They are useful in helping him to make sound financial decisions on the source of funds, the investment option to undertake and the financial prudence needed in the running of a business entity. What the time value of money is and why it is so important in the field of finance: The question that comes to mind is what the value of a future cash flow is today. The time value of money is the value of the stream of future cash flows today. Money has a time value since a dollar held today is worth more than a dollar to be received in the future. If you had the money today, you would have probably invested it and earned interest thus time value of money is the opportunity cost of foregoing todays consumption. Time value of money is important in the field of fiancà © because before investment decisions are made there is required that a comparison be made between the value funds invested today and the value of expected future cash inflows. The

Color Revolutions and Democracy promotion Research Paper

Color Revolutions and Democracy promotion - Research Paper Example The term â€Å"color revolutions† is largely used in describing as a single phenomenon various non-violent protests that have succeeded in ousting or overthrowing totalitarian regimes during the twenty-first century’s first decade (Finkel and Brudny, 2013). This phenomenon has involved thousands of people who wear colored symbols, take to the streets, as well as show their discontent with the incumbent regime. At the same time, the opposition is legitimized by the same crowds and therefore being able to negotiate political or regime change with the authorities. The term, geographically, has tended to encompass only post-communist states in the former Soviet Union and Eastern Europe. However, there is evidence that such movements have also been started in the Middle East (Beachain and Polese, 2010). This paper will discuss the color revolutions in Georgia, Serbia, and Ukraine and the process of democracy promotion afterwards by focusing on the influence of outside forces . The Republic of Georgia was one of the fifteen former Soviet Union republics to start a transition towards a state based on democracy and market economy, in 1991, following the disintegration of the Soviet Union coupled with the abolition of both the Comecon and the Warsaw Pact (Stewart, 2012). The color revolution in Georgia was symbolized by the Georgian Revolution of Roses often translated as â€Å"Rose Revolution†. This revolution is seen through five factors: external forces, the people, the civil society, the opposition, and the character of the regime. Ever since Georgia declared itself independent in 1991 under the leadership of Zviad Gamsakhurdia, it was a country in transition from totalitarianism towards free market economy and democracy (MacKinnon, 2008). Political theorists argue that enhancement of democracy is done by individuals embedded in certain

Personal Reflection Journal Assignment Unit 6, 7, 8, and 9

Personal Reflection Journal Unit 6, 7, 8, and 9 - Assignment Example Now, I am aware that these strengths will be my keys to success in my career and personal life. I did not really need an assessment to tell me that. However, it surely motivated me to go on and even try harder at what I do. I do not have an excuse to be mediocre. How can I apply the results of the strengths-finder assessment in my personal life and career? As a relator, I am a people-person. I am not one to shy away from meeting new people and getting to know them for various purposes. This definitely helps me in my networking activities. As an achiever, engaging in tasks drives me to do more. The exhilaration of completing them excellently is very fulfilling. Being analytical can make me appear cynical of other people’s ideas. I need to consider all options and possibilities before I finally give my nod. I know it keeps people on their toes, and for me, that is a good thing so they also strive to do their best with me. I can link this to being an arranger. I strive to iron everything out so operations run without glitches. Lastly, being in command ensures that I get things done. I can take charge of things, and assume a leadership position with confidence because of my other strengths that contribute to my credibility. Given a choice, I would opt to be an Operations Manager instead of my current job as Technical Advisor. I believe my strengths as a commander, relator and achiever will greatly benefit the position. Being in command enables me to act out decisions with ease because I know I take action and not merely think. My being an achiever makes sure of that. Being a relator helps me connect with people and place them where they are best suited. I am confident that as an operations manager, I will excel with the help of my strengths. As for my weaknesses, I need to keep reflecting on my performance to know where I need improvement on. My self-evaluation will help me identify these weaknesses

Project Implementation Plan Essay Example for Free

Project Implementation Plan Essay In a project the communication level is a very important part from the beginning to the end of project close out and completion stage. This method in the plan is extremely necessary and it is a needed tool that helps assist the project team, the stakeholders, and the executive team of Enterprise. This tool is effective and it makes sure all members involved with the project is on the same level of understanding, it makes sure all involved stays updated on the project, knows what is going on in the project, and it helps keep the project information together. â€Å"One of the primary jobs of a project manager is to manage the trade-offs among time, cost, and performance† (Gray Larson, 2006, p. 103). A project manager must ensure that he keeps everybody inform about the latest development of the project; thereby gives sense of belonging to every member of the project team as well as the sponsor or customer. Within this project, the communication plan is the key element that is designed to help assist the project team, stakeholders, and the executive team aware of any progress, and to help keep up with the status of the progress in the process. The plan of communication design help keep all members of the project aware of the progress and the status of the project, it helps everyone stay informed and connected in the project, and it gives information regarding any matters of urgency that are crucial within the project progress. The purpose of this  communication plan is to make sure all key aspects and elements of the communication strategy are documented and implemented successfully in the project. The strategies implemented include: frequency, method of delivery, recipients, and owner. The frequency in this communication plan entails scheduled meetings and how often they are being scheduled, it explains the project progress and all important information needed to help assist with the project deliverables which helps keep all the members aware of everything needed to meet the objectives of the project while keeping everyone on the same level of understanding. The team will have meeting on the status and progress of the project deliverables scheduled throughout the project as needed. Method of delivery is the avenue in which the reports or minutes of all the meetings will be disseminating to all the participants. The method adopts for the purpose of this project is through email, in person, and paper copy. The recipients in this project are project team, enterprise executive and potential stakeholders in the project outcomes. These are the people that directly are involved in carrying out activities in this project. The format is in regards to the style adopted to see the communication being effective as the project progresses. These are important elements needed to help achieve the project objectives and deliverables which keep all members connected, informed, and constantly communicating. The training, development, and overall retention and selection practices helps manage challenges (McNamara, 2011). The channel of communication for the purpose of this project will be formal in nature. No informal meeting will be allow or reckon with, all information must be well documented with proper references. Verbal and written communication is needed in as much it does oblige with the communication plan designed for this project. It is essential to the elements of the project success that all stakeholders involved have to follow the rules as contains in this communication plan because this will help track any issues as regards the scope, schedule and cost of this project. The project manager is in charge of clarifying any elements in this communication plan, and all concerns need to be addressed to the project manager. PROGRESS MEETING AGENDA Introduction Review meeting times Project progress update Contingency modification Request for information Scope performance Budget performance Project Schedule Owner items Next meeting date PROGRESS MEETING AGENDA Meeting agenda are guidelines that help modify and keep focuses of the issues to be discussed. The elements are tools that write down everything that needs to be achieved after a meeting. In the case of this project, many items have been identified and pencil down for this purpose of this meeting. They are introduction, review of last meeting minutes, project progress update, contingency modification, request for information, contractor update about scope performance, budget performance, and project schedule, also identified are owner items, and next meeting date. Introduction gives every participant in the meeting the ability to tell people who they are, what they are doing and their contribution or job function as related to the on-going project. This process brings everyone together on the same page and it helps members get to know one another and form an effective working relationship. Review last meeting minutes is an important element in this process that explains all the activ ities of previous meeting if there is any out loud so that everyone clearly hears and knows what is going on in the project. This allows all members to know what has been said, what needs to be done, and it helps to go over everything about the agenda of the day. Progress update is the most important aspect of this process. All the major stake holders furnish the house with comprehensive update of what happen to the project since last meeting. This must cover the areas of what was identified in the previous progress meeting as well which helps keep all members of the project on the same level of understanding what has happened, is happening, and will happen in the next meeting. Contingency modification is when things happen unexpectedly during the activities of the project needs to cater for. This should bring attention to the house if there is any  contingency or not, and if there is any, what is the solution put in place to address this contingency. Request for information is where information that needs immediate attention of project team is discussed. The information here could be result of specifics action that was previously talked about in the past meetings. Contractor update is when the contractor gives detail reports of the project or major portion of the project to the sponsor or customer. The parameter that the report of contractor will focus on must include project scope performance, project budget performance and project schedule. Owner items explain what the owner has observed within the project. He or she explains whether or not the project is going as scheduled? Is the project still running within the budget and are specifications being met? This is a means that the owner talks extensively about what he or she has observed and what changes he or she wants to see before the next meeting. Next meeting date is where the current meeting is adjourned and the next progress meeting date is announce to everybody. The date, the time and the venue of the meeting will be known to everybody. The next meeting helps prepare all members for the future meetings and the aspects of these meetings that are important and essential to the success of the project. PROJECT CHARTER PURPOSE The project charter defines the scope, objectives, and overall approach for the work to be completed. It is a critical element for initiating, planning, executing, controlling, and assessing the project. It should be the single point of reference on the project for project goals and objectives, scope, organization, estimates, work plan, and budget. In addition, it serves as a contract between the Project Team and the Project Sponsors, stating what will be delivered according to the budget, time constraints, risks, resources, and standards agreed upon for the project.

Vodafone Is A UK Based Telecommunications Marketing Essay

Vodafone Is A UK Based Telecommunications Marketing Essay In this case report we will provide two detailed strategic options for Vodafone as a telecommunications provider to sustain its growth internationally. We will give reason for our recommendations and evaluate the VRIO Framework of the organization and provide a clear Five Forces Analysis. Vodafone is a UK based telecommunications giant that has been a part of shaping the wireless phone industry as we know it today. Vodafone is present is most European and Asian markets. The company failed in Japan and has yet to enter the American market successfully as an independent company. We have developed two strategies for management to consider. Our first option is highly innovative and requires the company to utilize technology that already exists by forming alliances with providers of internet connections and with phone manufacturers. Our second option suggest that Vodafone should enter the American market as soon as possible providing wireless phone service in the American market place using many aspects of its existing business model. Suggesting the first option involves higher risk than option two. There is however room for sustainable growth with both options. Case 3-11: Vodafone; E Pluribus Enum Mission and objectives of Vodafone: Vodafone is the worlds largest provider of voice and data communication services to consumers and enterprise customers. The company employs about 66,000 people around the world. The company headquarter is situated in Berkshire, UK. Vodafone operates through single reportable business segment: supply of communications services and products. At the end of March 2007, the company had 206 million customers world wide. (Vodafone, 2007) Vodafones strategic objectives: Revenue stimulation and cost reduction in Europe Innovate and deliver on our customers total communication needs Deliver strong growth in emerging markets Actively manage our portfolio to maximize returns Align capital structure and shareholder returns policy to strategy Key issues and problems; Key issues and problems for Vodafone include how the company manages to coordinate its growth and to maintain its competitive advantage in the dramatically changing market environment of the dynamic telecommunication sector. VRIO: Table 1.1 The VRIO framework Value Rarity Imitability Organization Competitive implications Network infrastructure Yes No No Yes Competitive parity Diversified revenue base Yes Yes No Yes Temporary competitive advantage Leading market position Yes Yes Yes Yes Sustained competitive advantage Network infrastructure One of Vodafones key technologies and resources is the strong network infrastructure that supports its operations. To be able to provide mobile services, a strong network infrastructure is fundamental for the company. Vodafone operates 2G networks, through GSM networks, in all its mobile operating subsidiaries, offering its customers services such as voice, text messaging and basic data services. All the networks operate GPRS or 2.5G as well, which enables wireless access with mobile devices to data networks like the internet. Vodafone also controls 3G networks offering its customers mobile broadband data access services allowing data download speeds of up to 384 kilobits per second. 2006 launched High Speed Downlink Packet Access (HSDPA) technology shortens download times significantly with data transmission speeds of up to 3.6 megabits per second and makes the usage of mobile broadband services much more pleasant for the customers. HSDPA is enabled in the existing 3G network with a fter software updates. (Vodafone, 2007) The strong network infrastructure is a valuable resource and enables the company to respond to the growing customer needs with high quality services now and in the future. This valuable resource is not a rarity in the wireless telecommunication industry and therefore it cannot be costly for the competitors to imitate. Many of the worlds large mobile operators have the same access to the same technology as Vodafone and a control over massive networks. Vodafone is very well organized to exploit the full competitive potential of the network infrastructure by providing the employees a productive and safe working environment with attractive performance based incentives. This resource is an organizational strength and generates a competitive parity. Diversified revenue base By acquisitions, stakes in companies, and partner networks Vodafone has strategically expanded its presence to consider the whole world. The company has equity interests in 25 countries. Vodafones partner network arrangements extend to a further 38 countries. (Vodafone, 2007) Vodafone has significant mobile operations in countries such as Germany, Italy, Spain, UK, Egypt, Kenya, South Africa, Australia and New Zealand. In 2007 the largest geographic region was Germany with a contribution of 17.1% to the total revenue, followed by UK 16.3%, Spain 14.1%, Italy 13.5%, and other Europe 13.5%. Arcor and Pacific contributed 9%, Middle East, Africa and Asia 8.2%, and Eastern Europe the rest 9% of the revenues. (Datamonitor, 2007) Vodafones global reach and geographically diversified revenue base is a valuable resource for the company. This valuable resource helps the company to compensate its risks and losses. As diversified as Vodafones revenue base is it is a rarity within the wireless te lecommunication industry. Vodafones strategy is to actively manage their portfolio by investing into markets that offer a strong local position. With strict financial investment criteria Vodafone maximizes its and its shareholders returns. (Vodafone, 2007) Vodafones competitors would not face a cost disadvantage in trying to imitate this resource. It is more about the strategy that a company implements than about the financial resources. Vodafone is well organized to exploit the full competitive potential of this valuable and rare resource. The Boards goal is to make sure that the companys employees are aware of Vodafones strategic goals and mutual obligations. This resource is an organizational strength and distinctive competence and generates a temporary competitive advantage. Leading market position Vodafone is the worlds leading mobile telecommunications company. Vodafone operates in Europe, the Middle East, Africa, Asia Pacific and the US by subsidiary undertakings, associated undertakings and investments. In countries with significant operations Vodafones market shares are impressive; Germany 36%, Italy 33%, Spain 31%, UK 26%, South Africa 58%, US 25%, Egypt 48%, and Australia 18%. (Datamonitor, 2007) A strong market share with the market leader position is an extremely valuable and rare resource which improves the companys brand image and gives it a solid foundation to enter new potential markets. This resource is imperfectly imitable and the competitors would face a cost disadvantage in obtaining or developing it. Vodafones market leader position is based on the passion and effort of the companys employees. The company is well organized to manage effectively its employees to reach their full potential and benefiting them selves and the company. This resource is an organizat ional strength and sustainable distinctive competence and generates a sustained competitive advantage. 5 Forces Vodafone: Rivalry: The threat of rivalry in this business is impacted by the low number of big firms in the market. There are a few numbers of large firms worldwide that competes for the market share; this lowers the threat of rivalry. The firms that are in the business however are very competitive and because of a relative slow market growth in this industry the firms fight over the market shares that are out there and that increase the threat. There is also a low level of switching costs to the consumer and a low level of product differentiation and this further brings the threat level of rivalry up. So in the mobile network industry the threat of rivalry is fairly high. Substitutes: The threat of substitutes for voice and data communication over the traditional network is moderate. People calling over long distances could instead of picking up a phone go to a computer and call through that. The low costs of computer calling could potentially take over most long distance calling. The more local calls and business calls would be more secure for the mobile market, although cell phones with the ability to use the internet to make calls are being made available and will soon take a considerable market share of calls made. The threat of substitutes can be reasonable high in this industry. Buyers: The threat of buyers in this industry can be considered fairly low. The individual buyer has no impact on the price of the products offered. Suppliers: Suppliers power in some aspects of this industry is high. In the cell phone part of the business the suppliers of the phones can have a big impact on the price of products and the condition of the deal they make with the provider. One clear example of this is when apple launched their new I-phone. They made an exclusive contract with ATT so they had the exclusive right to be the service provider to their phone in America. So the suppliers power in this industry is high. New Entry: The threat of entry is highly influenced by the economy of scale of the existing companies. The large well established companies that have a strong foothold in the market and a known brand name would make entry for a new company costly. Although there are some new arrivals the larger firms control the market and will put pressure on any new entries. The threat of new entries is fairly low for the bigger companies. Table 2.1 Market Positioning Grid: High Tele2 TeliaSonera Low DKSonofon Coverage BT Vodafone VirginMobile ATT High Market Share Low Market Share Coverage Main Problem Statement: How can WE revolutionize the wireless telecom industry? Strategic Option 1: There is a lot of buzz in the telecommunication market about 2G and 3G networks. It was the dream of the CEO of Vodafone to bring the 3G network into the hands of the American consumers a few years back, but Vodafones partner in America did not want to invest in the new 3rd generation network. The new technologies that are out in the market now can give Vodafone the opportunity to be in front of all the competition in the American market. What we propose that Vodafone enters the American market with a 6th generation phone and phone service for cell phones. The type of phone is a phone that not only works on the regular network used to day in America but can also use the internet to make calls, not only to other Vodafone customers but to all networks. The technology is not new and exists today in America, but not in the mobile phone market. Vonage and Comcast offer their customers a phone service based over digital networks and not over standard phone lines. The way Vodafone is going to differ themselves from the existing firms is to offer this to cell phones. The way that this system works is that instead of the cell phone using the regular network to connect the calls it makes, it uses any wireless internet access that it can connect to. This means that calling people from you cell is virtually free and you would only pay a monthly charge on you cell phone to Vodafone. If you cannot find a wireless network to connect to, the phone can use a regular phone network as a backup. With a strategy to enter and take a market share in America like this one, you do not have to make large fixed investments in the hardware. Instead you have a 6th generation phone that can be operated on both the old networks and on digital networks. To get these phones and plans out to a large customer group, Vodafone should concentrate on the big cities first, making a encrypted wireless network available in the city that only their phones can access. This way the company can see how the customers like being connected to a faster and better network with a more advanced phone then available in the American market. The latest hype in the American cell phone market is the Iphone; this phone is looked into one carrier and can over the carriers network connect to the internet. The phone is locked to one carrier (ATT) but can be hacked and used by others. The Vodafone would be configured so that you cannot hack it by the software allowing the consumer to connect and call for free to any phone in the world by simply not connecting that person to the Vodafone network. The phone could be free for all providers to sell but some functions on the phone like IP communication would be useless. Since this is one of the biggest selling points for the product you basically lock the customer in to your carrier. To be able to make money of you customers you set a fixed monthly payment for the plan and no extra charges for calling people over the wireless networks, but standard charges for regular charges made from the phones. Strategic Option 2: It is hard to try to develop a strategic option to revolutionize the telecom industry for a company that has already been involved in shaping the industry for many years. Option 2 will differ from Option 1 in multiple areas. For option 2 we propose that Vodafone enters the American market place as soon as possible as Vodafone the company instead of through subsidiaries. Vodafone has always focused their marketing efforts mainly through sponsorships of large sports teams such as Manchester United Football Club and McLaren Mercedes Benz Formula 1 team along with hundreds of others. We believe that Vodafone can copy many of the elements that European customers have been satisfied with directly over to the American market which is currently lagging behind by almost five years compared to Asia and almost two years compared to Europe. Providing 3G service in the United States is needed and we believe that Vodafone could successfully gain market share in the United States. Vodafone has very high brand equity world wide and we believe that it is time to establish a grip on the US market. Recommendation Implementation: It is easy to see similarities between Vodafone and Sir Richard Bransons Virgin Corporation, other than the fact that the logos look similar. They are both UK based companies that are very dynamic and the company cultures are similar. Both companies are not afraid to be innovative and to move in new directions. We therefore recommend that Vodafone choose to move forwards with Option 1. This option involves the most risk, but we firmly believe that the industry is moving more and more towards telecommunication via wireless broadband connections. Just take a look at the Apple iPhone which with just one push on the touch screen switches from WI-FI to pure telephone mode. The iPhone does not provide IP-voice communication yet but we firmly believe that it is just a matter of time before it and others will. Implementing Option 1 we recommend that Vodafone establish strategic alliances with certain US based companies to be able to provide WI-FI hotspots that the handheld devices connect to. Also establish alliances or strengthen alliances with the phone manufacturers. We recognize that there are some privacy issues with Option 1 that needs to be solved, but this could not be done overnight and those issues will apply to the Vodafones competitors, such as ATT as well. We choose to recommend Option 1 because we have identified an opportunity for Vodafone to become the industry innovator and leader also in the United States over time. And we believe that it is possible due to the fact that the company is dynamic and it is not afraid to explore new opportunities. The same level of brand equity can be achieved in the US as in Europe and Asia. Lessons Learned: There are many valuable lessons in this case. First lesson is that in order to sustain growth in an industry as rapidly changing as technology companies always has to look for ways to be innovative and renew themselves in order to stay competitive and current. Another lesson is that a dynamic company without too many constraints to change can be extremely successful in rapid paced industries. We therefore identify a significant opportunity for Vodafone to emerge into new markets in the future. iReferences: Vodafone, (2007). Annual report 2007. Retrieved November 6, 2007, from vodafone.com Web site: http://www.vodafone.com/etc/medialib/attachments/agm_2007.Par. 62252.File.tmp/Vodafone_RA_2007_web.pdf Datamonitor, (2007 July 26). Vodafone group plc, compan profile. Retrieved November 6, 2007, from EBSCOhost Web site: http://web.ebscohost.com/ehost/ pdf?vid=7hid=3sid=6cebab29-68f7-4981-b9c3-485f73f9fcb1%40SRCSM1

Richard Feynman: Theres Plenty of Room at the Bottom

Richard Feynman: Theres Plenty of Room at the Bottom Describe his perspectives, its major points and its implications. The physicist Richard Feynman given a lecture at American Physical Society on December 29, 1959 named Theres Plenty of Room at the Bottom. This article was very different from the other commonly written topics on physics at that time. These days this lecture is commonly mentioned due to its extraordinary imaginative power. In this article Feynman predicted nanotechnology as an entire innovative field and explained the prosperity of innovatory technology advancements and applications such as very high density data storage media and very tiny mechanical devices would be practicable, with many improvements until ultimately essential physical limits at the atomic scale become applicable (Breitfelder). Feynman asked in his lecture to envisage a smallness contest in which we manage to write on a pinhead. Also he stated the techniques to read and write on pinhead. Feynman also talked about miniaturization of computers which is what exactly happening today; at the time of his lecture compute rs were very big. Feynman measured the opportunity of direct management of individualatomsas an extra powerful form of artificialchemistrythan those used at the time. Feynman considered very interesting implications of a general ability to control substance on an atomic scale. He was mainly concerned in the potential of smallcomputers andmicroscopeswhich could see things very small than is likely withscanning electron microscopes. Before Feynman given this speech there was very limited information of nanotechnology exists as he stated there is lot more research and experiments need to be done. However, he described various aspects of this technology and some practical examples of how to achieve large things at small scale. It includes writing very small text (for example the complete 24 volumes of the Encyclopaedia Britannica on the top of a pin), small computers (such as wire) and swallow the surgeon (very tiny robot which can go inside a person and examine him internally). In this article, Feynman asked some questions (like how do wewritesmall?) and he presented the answers for these questions in very significant manner. As he described there was no standard technique to write on such a small scale but it is not impossible. The article also explained the solution of small scale writing using techniques available to engineers in 1959.It was to turn round the lenses of the electron microscope in order to shrink and to enlarge the particular text. If the source of ions sent through the reverse microscope lenses it could focus to a very tiny dot. He further stated that it’s possible to write with that spot such as we write in a TV cathode ray oscilloscope by leaving diagonally in lines, and doing an adjustment which decides the quantity of material we are going to put as we scan in lines. He further assumed that every bit of the information in all books in a library could hypothetically be transformed to digital information and can be stored like bi ts consisting of elements which can have only a few atoms each. These can be two different shapes to represent 0s and 1s. This would bundle much more information into a smaller space, and according to Feynman the complete contents of the worlds large libraries could fit in somewhat the size of a dust nit. The author also presented the very different opportunity (which is the idea of his friend and graduate studentAlbert Hibbs) of swallowing the doctor,†. This idea involved building a little, swallow able surgical robot. This tiny robot goes inside the blood vessel of a person and can examine the internal problem and do the surgery by itself. One tinier machine can be designed to put permanently inside the body which can assist the poorly functioning of organs. Feynman further discussed how to design such a tiny robot with giving the example of atomic energy plants. The author’s imagination about the computers is very interesting as on one side he wanted to add more functionality to the existing computers, on another point he wanted them to be very small. Feynman stated that if we want to add more abilities to these existing large computers (which are of the size of the room) those new computers could be bigger than the pentagon’s building and some other disadvantages includes power consumption, heat generation, slow speed and too much material required. If speed of computers has to be faster, computers have to be smaller. The author recommended that very small computers could be prepared by fabricating all the required wires and components using chemical techniques, to form a little block consisting all the compulsory electronics. Feynman also said that building useful things could be done at the atomic level, by manipulating individual atoms to arrange them however the engineer or scientist wanted .However, he discussed the problems associated with these changes such as the gravity for these little things is not appreciable. If the sizes go smaller, some of the tools would also require redesigning due to the change in the relative strength of various forces. Even ifgravitywould become inconsequential, surface tension would turn out to be more important. At the end of this article, Feynman gave two challenges and offered a prize of $1000 for the person who can accept and solve it first. These challenges involved the construction of atiny electric motor no larger than 1/64th of an inch square and the second challenge involved the opportunity of making size of letters adequately small so that the entireEncyclopaedia Britannica can be written on the top of a pin. The information from a book page could be written on a surface 1/25,000 smaller in linear scale. In November 1960 William McLellan of Caltech, a meticulous craftsman, achieved the solution of first challenge with a device made by hand using conventional tools and claimed the prize. These days this tiny motor is placed in the corridors of Caltech. The book challenge took longer time; it was achieved just three years before Feynmans death in 1985 by Tom Newman, a graduate student at Stanford University, US, using electron-beam lithography. He scaled down the first paragraph ofâ€Å"A Tale of Two Cities†by 1/25,000, and calmed the second prize from Feynman (Feynman’s fancy†). The field has seen remarkable achievements since then, indeed, most notably the reduction of the area of transistors in microelectronic circuits by more than a factor of 107, or of the space required to store 1 bit of information on a magnetic surface by ≈108. Nanomechanical devices have seen tremendous progress, too, through impressive advances in scanning probe microscopy (Feynman’s fancy†). Works Cited Breitfelder, Kim. Theres Plenty of Room at the Bottom: Richard Feynmans Big Dream for Small Things. IEEE-USA Todays Engineer Online(2006): n. pag. Web. 17Jan.2014. Feynman, RichardP. Theres Plenty of Room at the Bottom. Journal of Microelectromechanical Systems 1.1(1992): 60-66. Print. Feynman’s fancy. Chemistry WorldJan.2009: 58-62. Web. 17Jan.2014.

Wuthering Heights - Short Analysis Essay :: essays research papers

Conflict is the basic foundation for Emily Bronte's Wuthering Heights. Much of this conflict results from a distinct division of classes and is portrayed through personal relationships, for example the unfriendly relationship between the higher-class Lintons and the lower-class Heathcliff. Conflict is also portrayed by the appearance of characters the setting. The division of classes is based on cultural, economic, and social differences, and it greatly affects the general behaviour and actions of each character. The setting of Wuthering Heights and Thrushcross Grange provides a clear example of social contrast. While the Heights is depicted as simply typical and "domestic," the Grange is described as a "scene of unprecedented richness". Each house is associated with behaviour fitting the description. For example, when Catherine is taken into the Grange, she experiences drastic changes, thus going from a "savage" to a "lady". While at this house, she rises in status, learns manners, and receives great privileges such as not having to work. Heathcliff, on the other hand, learns to classify himself as a member of the lower class, as he does not possess the qualities of those at the Grange. Catherine's decision to marry Edgar Linton rather than Heathcliff widens the gap between social classes because Edgar Linton is a wealthy man of high status, and Heathcliff is poor and possesses no assets. Catherine does not consider personal feelings, but instead, she focuses on her outward appearance to society. This is shown when she says, "Edgar Linton will be rich and I shall like to be the greatest woman of the neighbourhood whereas if Heathcliff and I married, we should be beggars.† In Wuthering Heights wealth signifies social class because Catherine strives to achieve high status by marrying the rich man over the poor man. The story concludes in "resolution and reconciliation". Wuthering Heights - Short Analysis Essay :: essays research papers Conflict is the basic foundation for Emily Bronte's Wuthering Heights. Much of this conflict results from a distinct division of classes and is portrayed through personal relationships, for example the unfriendly relationship between the higher-class Lintons and the lower-class Heathcliff. Conflict is also portrayed by the appearance of characters the setting. The division of classes is based on cultural, economic, and social differences, and it greatly affects the general behaviour and actions of each character. The setting of Wuthering Heights and Thrushcross Grange provides a clear example of social contrast. While the Heights is depicted as simply typical and "domestic," the Grange is described as a "scene of unprecedented richness". Each house is associated with behaviour fitting the description. For example, when Catherine is taken into the Grange, she experiences drastic changes, thus going from a "savage" to a "lady". While at this house, she rises in status, learns manners, and receives great privileges such as not having to work. Heathcliff, on the other hand, learns to classify himself as a member of the lower class, as he does not possess the qualities of those at the Grange. Catherine's decision to marry Edgar Linton rather than Heathcliff widens the gap between social classes because Edgar Linton is a wealthy man of high status, and Heathcliff is poor and possesses no assets. Catherine does not consider personal feelings, but instead, she focuses on her outward appearance to society. This is shown when she says, "Edgar Linton will be rich and I shall like to be the greatest woman of the neighbourhood whereas if Heathcliff and I married, we should be beggars.† In Wuthering Heights wealth signifies social class because Catherine strives to achieve high status by marrying the rich man over the poor man. The story concludes in "resolution and reconciliation".

The Use of Series in The Big Sleep by Raymond Chandler Essay -- sleep

The Use of Series in The Big Sleep by Raymond Chandler In The Big Sleep, Raymond Chandler writes items in a series in almost every paragraph that does not include dialogue, occasions, in the text where Marlowe watches the other character do something like open and close a book or light a cigarette and flick the ash into a tray. When Chandler stops the dialogue to creates a space for Marlowe to record elements in the environment, he constructs sentences that indicate how Marlowe assimilates the information: characters perform three or more acts successively and Marlowe notices every movement, recording it at once. Therefore, Chandler builds sentences that contain as many separate actions as possible to reflect how fast the character performs the act, rather than isolate single actions in single sentences that break the action up. Specifically, Chandler builds sentences with items in a series to reflect continuous motion and mimic the way Marlowe perceives it. Series are economical and fast, pointing to the movement of the cha racter and the way Marlowe thinks. The series occur in paragraphs Marlowe narrates, sections before or after dialogue when Marlowe establishes the scope of the scene or moves the scene along. Chandler uses the construction when he describes the principal action in a scene. For example, chapter 17 opens with a paragraph that includes this sentence: "The boy swung the car over to the box hedge in front of Geiger's house, killed the motor and sat looking straight before him with both hands on the wheel" (99). In the paragraph, Chandler describes the inert environment with one compound sentence and two simple sentences. None of them contain a series. The sentence that ... ...es the scene correctly and as quickly as Marlowe sees it. Chandler does not want to write a text that reminds the reader it is a text. Instead he wants to imitate reality. He wants the reader to follow Marlowe, look over his shoulder, and maintain a constant, attached point-of-view shot of the action. For this reason, Chandler uses series to simulate the rhythm and speed of real action. When a writer like Chandler omits words and replaces them with commas, "ands," and "ors," he makes the sentence concise and speedy. When one reads such a text, she understands two things about the scene: how the character moves and how Marlowe perceives the movement. Chandler is sensitive to the relationship between the text, the reader, reality. So he creates a text that mimics real movement and real thinking. He uses series to carry the reader through the text.

Features of the Indian Economy

UNIT 17 FEATURES OF THE INDIAN ECONOMY Structure 1 7. 0 Objectives 17. 1 Introduction 17. 2 Features of the Indian Economy 17. 3 Growth and Development 1 7. 4 Mixed Economy 1 7. 5 Demographic Transition 1 7. 6 Sectoral Composition of GDP 1 7. 7 Employment Structure 1 7. 8 Inter-Governmental Fiscal Relations 17. 9 Let Us Sum Up 17. 10 Key Words 1 7. 1 1 Answers to Check Your Progress Exercises – – 17. 0 OBJECTIVES After going through this unit, you will be able to: identify the important features of the Indian economy; distinguish between economic growth and economic development; explain the pattern of demographic transition in India; xplain the sectoral composition of the Indian economy; and explain the pattern of employment in India. 17. 1 INTRODUCTION Let us begin with the word ‘economy'. It denotes the operations and management of the economic system – the activities related to production of goads and services, consumption, investment, exchange of g d an d services within the geogmphical territory, and exports and imports with rest of the world. You may have observed that production of goods and services requires inputs such as labour, capital (machineries, buildings, etc. ) and raw materials. The inputs are available in limited quantity, i. e. , there is a shortage of inputs. When these inputs are used in the production process, they need to be paid some reward. For example, if you want to employ a unit of labour you have to pay some wage to himher. Similarly, building can be hired by paying some rent or money can be borrowed by paying some interest. Ultimately utilization of inputs involves some costs. Thus the objective before the economy is to utilize the scarce resources efficiently so that production of goods and services is maximized and cost is minimized. Economic Development Now let us try to explain the structure of the Indian economy. The word structure, as you know, implies the way in which something is organised or put together. Thus we should look into the way the Indian economy is organised. AmrdinglyY we will find out the major segments or sectors of the Indian economy and the manner in which'these sectors interact with one another. In order to keep our discussion brief we will focus on the developments in the Indian economy dukg the post-independence period, particularly the period since five-year plans started in India. To begin with, we find out the important features of the Indian economy. 17. 2 FEATURES OF THE INDLAN ECONOMY At the time of Independence the Indian economy was stagnant and highly underdeveloped. Agriculture was the backbone of the economy but agricultural activities were undertaken through obsolete technology. Industrial sector c o n t r i i very little to gross domestic product (GDP). In order to give a direction to the economy the government initiated economic panning in the form of Five Year Plans in. 195 1. Over the years the economy has witnessed increase in GDP, the composition qf GDP has changed, standard of living of people has improved, and there has been ypgradation in level of technology. The important features of the Indian economy are as follows : 1) The Indian economy is a developing economy. It has not yet reached the level of economic development seen in America and Europe. – 2) The 1ndid economy is a mixed economy in the sense that both private sector and public sector coexist and participate in the production process. 3) It is c-zed by high population density and population growth. ) About one-third of the population live below poverty line. ‘Vicious cycle of poverty' operates in many sectors of the economy. 5) There is high level of unemployment and underanployment In addition, there is ‘disguised unemployment' in the agricultural sector. 6) The level of technology used in production process is low in many sectors. Modern technology has not been adopted in all sectors ofthe economy. 7) ~ h aise a shortage ofphysical and economic inhstmcture. ~ransporhti&(nm ak, railways, airlines), power (electricity, gas), and communication (telephone, Internet) have not reached all parts of the country. Even some parts of the country ‘ do not have provisions for schools, colleges, hospitals, and safe drinking-water supply- Let us discuss some of the above issues in detail. 17. 3 GROWTH AND DEVELOPMENT Economic development is a broader term than economic growth Economic growth usually means the growth in production of an economy. On the other hand, economic development includes other fsctors such as litemcyy health, child mortality rate, equality, regional balance, infbtmchrre, etc. Country GDP Per Capita GDP Per Capita (PPP US$) (annual growth rate) 1999 (1 990-99) United States 3 1,872 2. 0 United Kingdom 22,093 2. 1 France 22,897 1. 1 Mexico – 8,297 1. 0 l3mil 7,037 1. 5 China 3,617 9. 5 * India 2,242 4. 1 – — – Bangladesh 1,483 3. 1 Sri Lanka 3,279 4. 0 Nigeria 853 -0. 5 Tanzania 501 -0. 1 * The difference between economic growth and economic development is a subtle Features of the one. Let us take the example of a child. As a child grows her weight and height increases. Simultaneously, her capacity to leam, recognize and distinguish between objects develops. Thus growth is not sufficient; we need development also. Similarly, in the case of the Indian economy economic growth is not enough; we need economic development. We need better health of people, education for all, reduction in inequality among sections of people and regions, reduction in infant mortality rate (IMR), access to drinking water for all, etc. The government has to devise policies and allocate government expenditure so that these facilities are available to all. Thus the additional income generated in the economy reaches the backward regions and the poorer sections of society. To achieve economic development we need economic growth. In a stagnant economy, where there is no economic growth, realization of economic development is dificult. Table 17. 1 India in the World Ecaoomy – – – – Source: . World Development Report Measurement of the level of economic development is dificult, because it does not depend upon a single factor. There are a number of indicators of economic development. These indicators could be quite varied and too many. In Table 17. 1 we have given the per capita GDP along with annual growth rates of some of the economies. In order to make comparison possible we have given these figures in a comparable form (in purchasing power parity US$). You can see that Indian economy is not comparable to developed economies. The per capita GDP in India is much lower than in developed countries. However, it has a higher growth rate compared to others. Note that some of the countries have very low GDP per capita and have experienced decline in it over time (see, Nigeria and Tanzania, Economic Development Apart fiom low per capita income India is far below the developed economies in terms of development indicators. Some of these indicators are consumption of electricity, literacy rate, access to safe drinking water, empowerment of women, etc. United Nations Development Programme (UNDP) brings out a ‘human development index' by combining several indicators of development such as life expectancy, education, per capita income, and empowerment of women. According to Human Development Report 2001, India ranks 1 15 out of 162 countries in terms of human development index A positive feature of the Indian economy is that it is not stagnant; it is developing. It is one of the fastest growing economies in the world. There have been improvements in life expectancy, literacy, and availability of infrastructure. 17. 4 MIXED ECONOMY As mentioned earlier the Indian economy is a mixed economy where private sector and public sector coexist and contribute to the production process. Some of the activities such as law and order, justice and defence have to be performed by the government. However, the government enters directly into production of goods and services which the private sector can also produce. The extent to which the government should involve itself in the production activities is a controversial issue. During the decades of 1960s and 1 970s the Indian government produced whatever it could and intervened in the production decisions (what to prodae, where to produce, what technology to use) of the private sector through a rigorous licensing policy. We will discuss about the economic policy changes in India later in this block. Let us look into the reasons for undertaking production activities by the government. A producer in the private sector (usually motivated by higher profits) takes the risk of setting up an industry, purchases inputs, produces output and sells the output in the market for a price. Imagine a situation where a producer produces a commodity or service but cannot sell it for a price because consumers cannot be excluded fiom its consumption. You may have observed that in certain cases the benefit derived by you is in no way going to obstruct others from deriving its benefit. An example of the above could be the provision of streetlight by the local government. Thus, if your neighbour puts a light in h n t of her house, you enjoy the benefit that the front of your house also gets lighted; and you do not have to pay for it. In this case there is a market failure in the sense that your neighbour cannot charge you for the benefit you derive. Thus she does not have any incentive to put a bulb in front of her house. On similar logic you also do not put a bulb in h n t of your house, which requires street lighting by the government. Secondly, inbtructure such as road, ports, dams, etc. , require huge investment but the rate of return is very low in the short run. Thus no private entrepreneur would be interested in providing roads, which prompts the government to come forward. Thirdly, there are natural monopolies such as electricity generation, railways, etc. , where a single producer can serve the entire market. Fourthly, there are certain production activities which have so much social benefits that the govemment should produce these goods and services (e. g. , schools and colleges, hospitals, banks, etc. ). Fifthly, the government may enter into production activities to fblfil some other social objectives instead ifprofit motive. These objectives could be employment generatiorl, regional balrncc, and social i~plifot f the downtrodden. Thus there is a strong case for public sector production and Indian planners Year Share of Public Sector Share of Private Sector 1 960-61 9. 9 90. 1 1970-71 13. 7 86. 3 1980-8 1 19. 5 80. 5 1990-9 1 25. 1 74. 9 1998-99 25. 1 74. 1 recognized it fbm the very beginning. We observe the presence of public sector Features of the in construction, hotels and restaurants, transport and communication, railways, . Indian ~conomy banks and other services. Share of Public and Private Sector in GDP Let us look into the share of public sector in the GDP of M a (s ee Table 17. 2). In the financial year 1960-6 1 about 10 per cent of GDP originated fiom the public sector. In the Five Year Plans @e government expanded the role of the . government through more and [email  protected] investment in various activities. As a result,. the share of public sector in GDB increased to nearly 14 per cent in 1970-7 1, about 20 per cent in 1980-8 1 and 25 per cent in 1990-91. However, many restrictions on private sector have been removed during the decade of the 1990s. As a result, the private sector has increased rapidly and the share of public sector has remained around 25 per cent. Check Your Progress 1 Note: 3 Use the space given below for your answers. ni Check your answers with those given at the end of the Unit. 1) Bring out the important fbtures of the Indian economy. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 2) Distinguish between growth and development. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 5†¦. .. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ Economic Development 3) What are the reasons for the gov ernment to enter into production activities? †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 17. 5 DEMOGRAPHIC TRANSITION India accounts for 2. 4 per cent of the world surface area but it has 16. per cent of the world population. As per the 2001 census the population of India in 2001 was 102 crore. Thus India is the second country in the world to cross 1 billion mark, the first one being China. However, keeping in view the f act that China has a much lower population growth rate (1. 4 per cent per year) compared to India's 1. 93 per cent per year, India is likely to overtake China within a few decades. Change in the size of population takes place through three demographic events: birth, death and migration. In the Indian economy migration has played a negligible role in population growth. Thus population growth is largely due to higher birth rate than death rate. In an economy there is a pattern in which demographic transition takes place. Such transition can be divided into three stages. It has been observed that when the level of development is low in an economy both birth rate and death rate are high. As a result population growth rate is not that high. This is the first stage of demographic transition. When economic development takes place the economy moves on to the second stage – death rate declines due to availability of health facilities and medicines but birth rate continues to remain high. This is the stage when there is a wide gap between birth rate and death rate, and population increases sharply. With M e r economic development, the economy moves on to the third stage -both birth rate and death rate are low. Consequently, population growth rate is again low in the third stage. All the developed economies are in the third stage of demographic transition. Table 173 I Demographic Transition in India Year. Population Birth Rate Death Rate Population Life (in crore) (per 1000) (per 1000) Growth Rate Expectancy (% per annurn) (in years) 1950-51 36. 1 39. 9 27. 4 1. 5 32. 1 1960-61 43. 9 41. 7 22. 8 1 . % 41. 3 1970-71 54. 8 36. 9 14. 9 2. 20 45. 6 1980-81 68. 3 33. 9 12. 5 2. 22 50. 4 1990-91 84. 6 29. 5 9. 8 2. 14 58. 7 2000-01 102. 7 25. 8 8. 5 1. 93 62. 5 – – In the case of India during the pre-independence period both birth rate and death Features of the rate were quite high. As a result, population grew at a lower rate. As you can Indian Economy see fro m Table 17. 3 population growth rate during 1950-5 1 was only 1. 25 per cent per mum. However, population growth rate accelerated afterwards and 4 i reached a peak during 1980-81. A positive sign is that in the recent census the annual population growth rate has come down below 2 per cent. Some of the states such as Kerala, Tamilnadu and Punjab have reached a reasonably lower birth rate. However, in some of the major states such as Uttar Pradesh, Bihar, Rajasthan and Madhya Pradesh population growth rate is very high. Life expectancy indicates the number of years a newborn child is expected to . . swvive. It has increased from about 32 years in 1950-5 1 to more than 60 years at present. As a result, the percentage of the aged people in India has increased. On the other hand, a decline in birth rate has resulted in a decline in the percentage of children in the country. 4 17. 6 SECTORAL COMPOSITION OF GDP Let us look into the composition of GDP in India and the changes in it over h e . The composition of GDP in India has undergone substantial changes since 1950- 51. The share of agriculture has declined while that of industrial and service sectors has increased. Economic activities can be divided into three categories: primary activities, secondary activities and tertiary activities. Primary activities include i) agriculture, ii) fore and logging, and iii) fishing. Secondary activities include i) mining and quq& ii) d t u r i n g , iii) electricity, gas and water supply, and iv) construction Tertiary activities include i) trade, ii) hotels and restaurant, iii) transport (railways, road, air, waterways), iv) storage, v) communication, vi) banking and imurance, vii) real estate, and viii) public administration and defence. The tertiary activities are also called senrice activities. , Table 17. 4 Sectoral Composition of GDP Source: National Accounts Statistics of India Economic Development On the basis of Table 17. 4 we make the following observations: Agriculture and allied activities (p* sector) contributedmore than half of the GDP in 1950-5 1. The share of agriculture and allied activities has continuously declined over the years and contributed only 24. 2 per cent in the year 2000-01. Of this, agriculture contributed 22. 2 per cent while forestry and logging, and fishing contributed about 1 per cent each. The share of services sector has increased from 28 per cent in 1950-5 1 to 48. 5 per cent in 2000-01. For the year 2005-06 the share of services sector is estimated to be 54 per$ent of GDP. Thus services sector contributes more than half of the GDP at present. The share of secondary sector has increased fiom 14. 3 per cent in 1950-51 to 27. 3 per cent in 2000-01. Subsequently it declined to 26. 1 per cent in 2005-06. The decline in the share of the primary sector in GDP has taken place as the secondary and tertiary sectors have registered higher growth rate than the primary sector. In fact, the government has attempted to promote the secondary and tertiary sectors. If we look into the sectoral composition of GDP of the developed economies, we find that primary sector contributes less than 5 per cent of GDP. Most of the GDP comes fiom the service sector (about 70-80 per cent). So the developments in the Indian economy can be considered to be a positive aspect. A problem area, however, is the composition of employment, as we will see in the next Section. It is worth mentioning that of the 27. 3 per cent share in 2000-01 manufacturing sector contributes 17. 2 per cent to the GDP. The remaining 10. 1 per cent comes tiom mining and quarrying (2. per cent), electricity, gas and water supply (2. 5 per cent) and construction (5. 3 per cent). Remember that manufacturing, and electricity, gas and water supply constitute the industrial sector. In the industrial sector we have both private sector and public sector on the basis of ownership. Very often another distinction is made: organised sector and unorganized sector. In fact, as per the Industrial Act 1 95 1 all the industries employing more than 10 workers if production is through use of power (20 workers if production takes place without use ofpower) are ~lequiredto register with the RegisErar of Indu. These industrial units tidl under the category registered-sector or organized-sector. The remaining industrial units, mostly small scale, are termed unorganized sector. In the year 2000-01 the unorganized sector contributed 6 per cent to GDP compared to 1 1. 2 per cent by the organised sector. In the year 1950-5 1 both organized and unorganized sectors contributed almost equally to GDP at 4. 5 per cent each. Period National Per Capita Income Income First Five Year Plan (1 95 1-56) 3. 6 1. 8 Second Five Year Plan (1956-61) 4. 1 2. 0 Third Five Year Plan (1 96 1-66) 2. 5 0. 2 Fourth Five Year Plan (1969-74) 3. 1 . O Fifth Five Year Plan (1974-79) 5. 0 2. 7 Sixth Five Year Plan 1980-85) 5. 4 3. 2 , Seventh Five Year Plan (1985-90) 5. 8 3. 6 Eighth Five Year Plan (1 992-97) 6. 7 4. 6 Ninth Five Year Plan (1997-2002) 5. 4 3. 5 Features of the . Indian Eeonomy Table 175 Annual Growth Rntes (per cent per mum, 1993-94 prices) Source: Economic Survey 2001-02 From Table 17. 5 we observe that f or the period 1950-75 the average annual growth rate of national income was quite low (around 3. 5 per cent). On the other hand, during thi period 1975-2000 the average annual growth rate has been around 5. per cent. A similar trend is observed in the per capita income of India Per capita income is defined as national income divided by total population of the country. It is obtained by subtrachg population growth rate h m growth rate of national income. We should mention that before 1975 growth rate in national income was relatively lower while population growth rate was higher. As a result, per capita income increased at a very low rate (a little over 1 per cent per annum). On the other hand, after 1975 growth rate in national income was higher while population growth started slowing down. Consequently, per capita income increased at a relatively higher rate. During the period 1W-2002 per capita income h2ls i n d at around 4 per cent per mum. 17. 7 EMPLOYMENT STRUCTURE India being the second largest country in tern of population, it has a large labour – force (people who are able to and willing to work). In the year 1999-2000 there were 39. 7 crore employed workers in the country, which is about 40 per cent of the total population. The remaining 60 per cent population in the country are dependents. Thus for every worker there is 1. dependents. These dependents constitute children, aged and the unemployed. Because of high population growth rate the percentage of children in India is higher than in developed'countries. 13 Economic Devebpmnt Table 17. 6 Sectoral s om pod ti on of~rnployment Sector 1983 1993-94 1999-2000 Primary Sector Secondary Sector Service Sector . Total Total Employment (in crore) Agriculture has been the main source of employment in India. Dur ing the period 1950-70 it provided employment opportunity to more than two-third of the labour force. We mentioned earlier that the share of the primary sector (agriculture and allied activities) in GDP has declined over time in Indian economy. For the year 2000-01 primary sector contributed 24. 2 per cent of the GDP. Compare this with the employment share! In the year 1999-2000 nearly 60 per cent of the labour force were engaged in agriculture. We observe that the decline in GDP share of the primary sector is not accompanied by a corresponding decline in employment share. An implication is that workers employed in primary sector have a very low productivity than in secondary and tertiary sector. In the developed economies less than five per cent of the labour force is engaged in agriculture. It has been made possible by using modem technology and mechanization of agriculture. In some parts of India modem technology is employed in agriculture. However, a majority of farmers in India continue to we obsolete technology. A second implication is that there are too many people engaged in agriculture. In fiwt, agriculture has been a way of life for the households engaged in the agri- – activities. Very few children look for employment outside agriculture. And those who do not get employment anywhere else start working in the family owned land. As a result, often we see a feature termed ‘disguised unemployment' in Indian agriculture. It is a situation where a person is engaged llly in agriculture but his contribution is zero. It implies that if we take away the worlcer agricultural output will not decline. Suppose five pemons &working in a field and the output is 10 tomes of wheat. If we reduce the number of workers to four, then also output will remain the same. Thus the fifth worker worked in the field, but he is as good as unemployed, because his contribution is zero. It has been a policy of the government to shift the additional labour hxce in the ‘ agricultural sector to secondary and tertiary sectors. Recall that service sector contributes more than half of the GDP but provides employment to less than onefourth of the labour force. Thus the productivity of labour is higher in the service sector. 17. 8 INTER-GOVERNMENTAL FISCAL RELATIONS As you are aware India follows a democratic form of government, which is federal in nature. We have diffmt layem of govemment with specific powq and 14 Features of the Indian Economy esponsibilities defined by the Indian Constitution. Taking into account the amendments made so far the Constitution provides for three layers of government: Central, State and Local. In order to carry out its responsibilities the government at each level has been assigned powers to impose taxes on individuals and organizations based on criteria such as income, expenditure, production and certain economic transactions. The majo r source of revenue for the central government is income tax (on individuals and corporations), central excise, and custom duties (on imports of goods). On the other hand, there is a long list of taxes assigned to the states (including taxes on alcoholic beverages, agricultural income, and land) but the major source of tax revenue for the states is the sales tax. The tax base of the local governments is limited to local services and production. We have to keep certain things in mind while analyzing inter-govemmenth fiscal relations. One, there should be no fiscal overlapping so that the same tax should not be imposed by more than one layer of government. The Seventh Schedule of the Indian Constitution specifies the manner in which taxes are to be imposed by the central and state level govemments. Two, taxation power is assigned to a particular level of government keeping in view the geographical area oh which the impact of the tax is felt. Thus the tax categories assigned to the Centre are generally broad-based and their impact is felt beyond state boundaries. Three, the residual power with respect to taxation remains with the central government. While exercising such power the Centre introduced ‘service tax' during 1990s on the provision of specific services. Recall fiom Section 17. 7 of this unit that the share of s e ~ c essec tor in GDP is more than half and its share is increasing over the. Service tax is slated to be an important source of revenue in times to come. Four, imposition of taxes and hation of tax rates is a matter of political economy. In order to fbrther political interests governments have many times in the past waived taxes or excluded certain categories from taxation. A widely debated issue in this context is imposition of taxes on agricultural income, which is a state subject and state governments have invariably avoided taxation of rural rich. It has given rise to widespread tax evasion as individuals take advantage of the concession allowed to fanners and report non-agricultural income as agricultural income. Five, there is a mismatch between the tax base and the responsibilities assigned to different layers of govemments. The states have always complained about inadequate revenue compared to their expenditure. Similarly, there is shortage of funds at local government level compared to the expenditure they carry out. Six, tax base is unevenly distributed across states. For example, rich states have a relatively higher share of people who pay taxes. Similarly, relatively higher amount of excise duties is collected fiom industrially better off areas. In order to tackle the problems of inadequate tax revenue at the state level, the Centre transfers h d to the states. Apart from meeting the gap between revenue and expenditure the devolution of funds to subordinate layers of government has the effect of bringing in regional balance in economic development over time. There are three modes of transfer of h d s fiom the Centre to the states. First, the centre collects certain taxes (particularly, personal income tax and excise duties) and allocates a share of the tax proceeds to the states. In order to streamline such allocation the constitution provides for setting up of a Finance Commission every five years, which suggests criteria of such sharing between the ‘ Centre and the states on the one hand, and amongst different states on the other. So flir twelve Finance Commissions have been set up and each Finance commission Economic Development while suggesting such formulae have been poverty, backwardness, tax effort, fiscal discipline and population. The second mode of transfer of fhds h m the Centre to the states is the grants and loans extended to states for implementing development plans. As you know, while preparing the Five Year Plans the Centre sets targets and investments by different sectors of the economy. Against this backdrop the states prepare their annual plans which is approved by the Planning Commission. The states receive grants and loans h m the Centre which supplement the revenue generated at the state level. The Planning Commission allocates fhds to states as per formula devised by the National Development Council. For major states the ratio of grants to loan is 30:70. The third mode of transfer of h d s h m the Centre to the states is the grants given by central ministries to their counterparts in different states for specified projects. Such projects are wholly M e d by the Centre (under ‘central schemes') or the states are asked to contribute a proportion of the cost (in the case of 1 ‘centrally sponsored schemes'). The devolution of'fhds from the Centre to the states has been a matter of political economy. The allocation of funds across states, particularly by the Planning Commission and Central Ministries, is riddled with bargaining power of the state government, presence of pressure groups, and political interests rather than balanced economic growth. The grants extended to local bodies by the states is mostly discretionary and no set rule is formulated so far. The adoption of value added tax (VAT) by states in lieu of sales tax has opened up fhxh debates on tax base of the state governments. Check Your Progress 2 Note: i) Space given below for your answers. i) Check your answers with those given at the end of the unit. 1) Explain the three stages of demographic transition. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚ ¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 2) What are the changes. observed in the sectoral composition of GDP-in India? ‘ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã ¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 16 3) Explain the concept of disguised unemployment. Features of the IndinEconomy †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 4) What are the modes of transfer of h d s h mth e Centre to the States? 5) State whether the followin g statements are true or false. a) Unorganised sector is also called registered sector. b) In developed economies primary sector contributes a large share in GDP. ) Productivity of labour is higher in the tertiary sector than in the primary sector. 17. 9 LET US SUM UP Indian economy is considered to be a developing economy. At the time of Independence the agricultural sector contributed about 50 per cent of the GDP. Over the years its share has decreased to about 22 per cent of GDP which means that the share of industrial and service sectors is increasing. This is a positive development. But agricultural sector employs about 60 per cent of the labour force and this percentage is not declining which is a matter of concern. India is the second largest in terms of population and it is still growing at a very high rate. About one-third of the population in the country are poor. There is considerable underemployment and unemployment in the economy also. The federal nature of government in India requires interaction among different layers of government according to set rules. It is also desirable to achieve consistency between revenue generation and government expenditure to carry out responsibilities at each layer of government. Keeping in view the shortage of funds at the state level the Centre provides grants and loans to the states. India has made radical changes in her economic policies since 1991. Economic libedzation has resulted in setting up of more industries and the level of technology has improved. The annual growth rate of GDP has increased to about 6 per cent ; during the liberalization period. Its export potential also has improved and India Economic Development has a strong fareign exchange reserve. We will discuss the changes in economic policy, popularly termed ‘economic reforms' in subsequent units. 17. 10 KEY WORDS Constant Prices Disguised Unemployment : Financial Year Gross Domestic Product : (GDP) National Income Per Capita Income Public Sector National income in money terms would increase because of two factors: i) increase in quantity produced, and ii) increase in price of commodities. In order to neutralize the effect of price increase national income is expressed in terms of prices of a particular year, called ‘base year'. When we say that GDP is given in terms of 1993-94 prices, GDP of all the years are adjusted for price changes so that growth in GDP is due to increase in quantity w. A person is considered to be disguisedly nemployed if hisher contribution to total output is zero. Even if we withdraw the worker from work, output will not decline. Let us take an example. For the year 2004, calendar year is from January 1 to December 3 1. On the other hand, financial year 2004-05 is h m April 1,2004 to March 3 1, 2005. It is the total amount of final goods and services produced within the geographical tenitory of the economy. It does no t include intermediate goods and service, i. e. , goods and services that are not consumed directly but used for M e r production. Moreover, it does not include second hand sales ecause it does not reflect production; rather it is a change of ownership of goods produced earlier. It is also called ‘net national product' (NNP). It is the total of final goods and services produced . by Indian nationals (both within the country and residing abroad) minus the amount of dqmiation during the production process. If we add the amount of depreciation to NNP we get GNP. Remember that GNP is different from GDP. In GDP of India we include final goods and sexvices produced within the geographical territory of India (both by Indian and foreign nationals). It is national income divided by total population of the country. , -ha. . It includes the economic activities undertaken by the government. Vicious Circle of Poverty : It reflects a flow of inter-related economic activities that keep an economy under-developed. According to Ragnar Nurkse underdeveloped economies have low rate of saving which gives rise to low rate of investment. Due to low rate of investment, low level technology is employed in production activities. Because of low level of technology, output produced is lower. Consequently, saving is low and the cycle