Economics@PayalSingh

Current Repo Rate 5.4% *REVISED * on 7.8.19 Current Reverse Repo rate 5.15 *REVISED * on 7.8.19

Development Path of India, Pakistan and China. (i) All the three countries started their development path at the same time. India and Pakistan got independence in 1947 and people’s Republic of China was established in 1949. (ii) All the three countries had started planning their development strategies in similar ways. India announced its First Five Year Plan in 1951, Pakistan announced in 1956 and China in 1953. (iii) India and Pakistan adopted similar strategies, such as creating a large public sector and raising public expenditure on social development. (iv) Both India and Pakistan had adopted ‘mixed economy’ model but China had adopted ‘Command Economy’ model of economic growth. (v) Till 1980 s , all the three countries had similar growth rates and per capita incomes. (vi) Economic Reforms were implemented in China in 1978, in Pakistan in 1988 and in India in 1991. Development Strategy: A.   China (i) After the establishment of People’s Repu

Environment  is defined as the total planetary inheritance and the totality of all resources. It includes all the biotic and abiotic elements that influence each other. All living elements-the birds, animals and plants, forests, fisheries etc. are  biotic elements. Abiotic elements  of the environment includes non-living elements like air, water, land, rocks and sunlight etc. Functions of the Environment (i) Environment supplies resource (both renewable and nonrenewable resources) for production. (ii) Environment assimilates waste, (iii) Environment sustains life. (iv) Environment enhances quality of life. The environment is able to perform these functions without any interruption as long as demand on these functions are within its carrying capacity. Carrying capacity implies two things: (i) Resource extraction should remain below the rate of resource regeneration. (ii) Generation of wastes should remain within the absorption

Infrastructure  refers to all such services and facilities, which are needed to provide different kinds of services in an economy and which are essential in raising the place of economic growth of a country. It contributes to economic development of a country both by raising the productivity of factors of production and improving the quality of life of its people. It provides supporting services in the main areas of industrial and agricultural production, domestic and foreign trade and commerce. Types of Infrastructure 1. Economic Infrastructure a. Transport b. Power c. Communication d. Financial Institutions etc 2. Social Infrastructure a. Education b. Health c. Housing etc Difference between Social and Economic Infrastructure    Social Infrastructure It helps the economic system from outside(indirectly). Economic Infrastructure It helps the economic system from inside(directly). Social Infrastructure It improves q

Unemployment:  It is a situation where a person is ready and willing to work at the prevailing wage-rate but doesn’t get work. Work Force Participation Rate(Ratio):-  It is measured as the ratio between workforce and total population of a country. Types of workers: i. Self employed i. Casual Workers ii. Regular Workers(Salaried) Casualisation and informalisation of employment: Casualisation refers to a situation when the percentage of casually hired workers in the total workforce tends to rise over time. Informalisation:  Refers to a situation when people tend to find employment more in informal sector of the economy, and less in formal sector of the economy. Types of unemployment: 1. Rural unemployment a. Seasonal Unemployment b. Disguised Unemployment 2. Other types of unemployment a. Open b. Frictional c. Structural d. Cyclical 3. Urban Unemployment a. Industrial Unemployment b. Educated Unemployment c. Technological Unemployment Frictional unemployment   is defined as th

Rural development  is a comprehensive term which essentially focuses on action for the development of area which is lagging behind in overall development of village economy. Objectives of rural development: 1. Increasing productivity of agricultural sector. 2. Generating alternative means of livelihood in rural sector. 3. Promoting education and health facilities in the rural areas. Key issues in rural development. (i) A robust system of rural credit. (ii) A system of marketing that ensures remunerative price to the farmer for his produce. (iii) Diversification of crops that reduce risks of production and induces commercialisation of farming. (iv) Diversification of production activity with a view to find alternative means of sustainable living other than crop-cultivation. (v) Promotion of organic farming with a view to make crop cultivation environmental friendly as well as a sustainable process over a long period of time. (vi) Honest system of land reforms. (vii)

Human capital  refers to the stock of skill, ability, expertise, education and knowledge in a nation at a point of time. Human Capital formation - Human Capital formation implies the development of abilities and skills among the population of the country.It is the process of adding to the stock of human capital over a period of time. Physical capital  refers to assets which themselves have been manufactured and are used for production of other goods and services. Sources of human capital formation. (i) Expenditure on education. (ii) Expenditure on health. (iii) On the job training. (iv) Migration. (v) Expenditure on information. Role of human capital formation in economic growth. (i) Raises production (ii) Change in emotional and physical environment of growth. (iii) Improves quality of life. (iv) Raises life expectancy. (v) Innovative skills. (vi) Raises social justice and equality. Problems facing human capital formation. (i) Rising population (ii) High regional an

Poverty  is the inability to fulfill the minimum requirement of life like food, clothing, housing education and health facilities etc. Relative poverty  refers to poverty of people in comparison to other people in different region or nations. Absolute poverty  refers to total number of people living below the poverty line. Absolute poverty is measured on the basis of two criteria:- 1. Minimum Calories Consumption Criteria 2. Minimum Consumption Expenditure Criteria 1. Minimum Calories Consumption:-  People who are not getting 2400 calories per person per day in rural areas and 2100 calories in urban area is considered to be living below poverty line. 2. Minimum Consumption Expenditure Criteria:-  The new poverty line, thus, translates to a monthly per capita consumption expenditure of Rs 972 in rural areas and Rs 1,407 in urban areas in 2011-12. Or, Rs 32 in rural areas and Rs 47 in urban areas on a per capita daily basis. Poverty line  refers to that line which expresses per capi