Date post: | 28-Jan-2015 |
Category: |
Economy & Finance |
Upload: | megha-malviya |
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Governance is an integral part of
economic development
WHAT IS GOVERNANCE?
It relates to decisions that define expectations , grant power or verify performance.
Governance is an act of governing
The exercise of economic, political and administrative authority to manage a country’s affair at all levels.
Simply it means exercising power and decision making for a group of people is governance.
It comprises mechanism processes and institution through which citizen and groups articulate their interest , exercise their legal right meet their obligation
and mediate their differences.
Importance of government
• The world leaders at 2005 world summit concluded that good governance is integral to economic growth the eradication of poverty and hungry, and sustainable development.
• The views of all groups , including women , youth and the poor, must be heard and considered by governing bodies because they will be the ones most negatively affected if good governance is not achieved.
• People have a right to information and to access. Although widespread accessibility remains a barrier for many countries one of those ways is through information and communication technology (ICT) applications such as the internet.
7 major steps taken by INDIAN governmen
t for economic
reform
New industrial policy
New trade policy
Fiscal reforms
Monetary reforms
Capital market reforms
Phasing out subsidies
Dismantling price control
New industrial policy
Abolition of licensing.
freedom to import latest technology
Encourage foreign investment
FERA is replaced by FEMA
Contraction of Public Sector
MRTP Restrictions Removed
Increase in the Importance of Small Industries
New trade policy
Reduction in Restrictions of Export-Import Reduction in Export-Import Tax
Easy Procedure of Export-Import
Establishment of Foreign Capital Market Full Convertibility on Current Account
Providing Incentive for Export
Fiscal Reforms
Fiscal Deficit Gross Domestic
Product (GDP)
Monetary Reforms
SLR Rate of interest
Income recognition of banks.
Permission to collect the money-
issuing shares Open banks-
private sector
Portfolio Investment Scheme Securities and Exchange Board of India (SEBI) has been
established. interest on debentures has been lifted
companies are free to determine the price of the shares. Private sector has been permitted to establish Mutual
Fund.
Phasing out Subsidies
• Cash Compensatory Support (CCS) which was earlier given as export subsidy has been stopped.
Dismantling Price Control
The government has taken steps to remove price control in case of many products.
Price Control means that the companies will sell goods at the prices determined by the government.
The efforts to remove price control were mostly in respect of fertilizers, steel and iron and petro products.
Restrictions on the import of these products have also been removed.
Actions taken by governance for development
1. Remove barriers to trade and investment2. Improve their infrastructure
3. Developing countries access financial services4. Stimulating private sector investment in developing
countries5. Enabling businesses to include poor people directly
6. Supporting fair and ethical business operations7. Helping developing countries benefit from global and
regional trade8. Providing debt relief for developing countries
9. Research evidence on promoting sustainable economic development in developing countries
10.Helping developing countries to improve their provision of basic services