------------------------------------------------------------------------ Stand Up! Speak Out! Rise! Resist! Department of Economics, Zakir Husain Delhi College, University of Delhi ------------------------------------------------------------------------ Issue 04, March 2015 Delhi, India Editorial I am honored to be Chief Editor of the 4 th issue of RISE, the annual economics journal of Department of Economics at Zakir Husain Delhi College. Making of the fourth issue has been a memorable journey. I feel proud to exclaim that this journal is giving wings to new ideas and helping the voices of educated youth to reach the masses. It has always been our top priority to produce and publish high quality articles and I thank the editorial team for their hard work. This year the 4 th issue of RISE is packed with various intriguing and thought- provoking articles. We have Tushar’s article comprehensively yet succinctly summarizing and critically analyzing the policies adopted by new government, which is followed by Aditya’s write up on the current situation on women’s education and employment in India. As a budding economist and researcher, we have Shubho clearly explaining the theory of free food from an economist’s perspective. In addition to that, Steffi and Sidharth have given their contributions critically analyzing the issue of communal onslaught in India. Keeping the environment in mind, we have Aditi from first year explaining the concept of sustainable development and the trade-offs it is accompanied with. Also, we have included transcripts of an Interview with Dr. Rachna Chaudhary, Ambedkar University, taken by Elias. In the clasroom teaching section, our teacher, Shirin Akhter has elegantly presented the latest review of data on financial autonomy among the poor women of India. We also have a write-up on by Kuldeep in the same section, in which he explains the concepts of Game Theory, a special read for all those who love microeconomics and also for those who need to understand the basics of Game Theory. Apart from all the academic write- ups, we have a quick refresher presented by Tanya under the Ramdom House column which is a very entertaining and a thought provoking do on the recent Swachh Bharat Abhiyan. We also have a book review ‘Contours of the World Economy, 1-2030 AD: Essays on Macro-Economic History’ by our teacher, Simin Akhter Naqvi. As always we have a words-worth column, this time we have translations of poems of Allama Mohammad Iqbal. In addition to that we
Department of Economics, Zakir Husain Delhi College,University of Delhi
------------------------------------------------------------------------Issue 04, March 2015 Delhi, India
EditorialI am honored to be Chief Editor of the 4th issue of RISE, the annual economics journal of Department of Economics at Zakir Husain Delhi College.
Making of the fourth issue has been a memorable journey. I feel proud to exclaim that this journal is giving wings to new ideas and helping the voices of educated youth to reach the masses. It has always been our top priority to produce and publish high quality articles and I thank the editorial team for their hard work.
This year the 4th issue of RISE is packed with various intriguing and thought-provoking articles. We have Tushar’s article comprehensively yet succinctlysummarizing and critically analyzing the policies adopted by new government, which is followed by Aditya’s write up on the current situation on women’s education and employment in India. As a budding economist and researcher, we have Shubho clearly explaining the theory of free food from an economist’s perspective. In addition to that, Steffi and Sidharth have given their contributions critically analyzing the issue of
communal onslaught in India. Keeping the environment in mind, we have Aditi from first year explaining the concept of sustainable development and the trade-offs it is accompanied with. Also, we have included transcripts of an Interview with Dr. Rachna Chaudhary, Ambedkar University, taken by Elias. In the clasroom teaching section, our teacher, Shirin Akhter has elegantly presented the latest review of dataon financial autonomy among the poor women of India. We also have a write-up on by Kuldeep in the same section, in which he explains the concepts of Game Theory, a special read for all those who love microeconomics and also for those who need to understand the basics of Game Theory. Apart from all the academic write-ups, we have a quick refresher presented by Tanya under the Ramdom House column which is a very entertaining and a thought provoking do on the recent Swachh Bharat Abhiyan. We also have a book review ‘Contours of the World Economy, 1-2030 AD: Essays on Macro-Economic History’ by our teacher, Simin Akhter Naqvi. As always we have a words-worth column, this time we have translations of poems of Allama Mohammad Iqbal. In addition to that we
have the annual report of the Economics Society of Zakir Husain Delhi College compiled by Team Rise and in the end we have also provided winning essays and posters at the 4th Annual Economics Symposium organized by the Economics Society on 13 March, 2015.
Our last issue ended with the note “Though views expressed by individual authors are their own, we, at ‘Rise’ stand in un-wagering solidarity and support.” Even after one year, the same spirit beats in our hearts and the same passion flows in our veins as we present to you the 4th Issue of RISE.
For further details, please follow the link:
https://sites.google.com/site/risezhdc/
You can also give your valuable feedbacks or any other suggestions to us at:[email protected]
Sukriti HatgaonkarChief Editor[BA Hons Economics, VI Semester]
EXPERT-SPEAK
Gender: Education, Identity and Social DiscourseBy Elias Borgoyari B.A. (Hons.) Economics, III [email protected]
Excerpts form an Interview with Academician and Activist Dr. Rachna Chaudhary [Ambedkar University, Delhi]
Elias Borgoyari: Could you please tell us something about gender- studies, its scope and utility as an academic discipline in a ‘third world society’ like India, especially
given the general social context of patriarchy and misogyny. Dr. Rachna Chaudhary: When we talk about gender studies as an academic discipline the scope is unlimited though the area is struggling to define itself some people do not even regard gender studies as a discipline, they see it as a perspective, as a way of looking at things from a certain location, the location of a particular theory, the feminist theory. Of course in third world countries gender studies itself is questionable because most of the universities are running women studies programs because they still see patriarchy and misogyny as the main problem which is keeping women down, though gender studies in a theoretical and ideological sense takes us a step further.Elias: How important is gender education in understanding the material basis of deprivation of women in a society so severely divided along the lines of religion, caste, gender and ethnicity? How difficult it is to take the message across to students and to the society at large?Dr. Chaudhary: You see, the classroom is a space wherein the students can bring in the voice they are otherwise unable to speak, for instance at home, or in public and at other places. We’ve had students with different sexual orientation, students who had identified themselves as queer or gay or homosexuals and discussion on gender and sexuality helps them open up and accept themselves as they are. As for the interaction of gender and religion and other categories of identity, the fight and struggle of every section is different from another. For instance as a woman, as a Hindu woman, as a practicing or non-practising Hindu, as somebody who speaks a certain language, hails from a certain part of the country, every aspect of my identity compounds the nature and dynamics of my problem and thus my struggle. So, my struggle is not
exactly the same as that of another woman, a non-working woman, a woman from a different economic strata; somebody from a different ethnic or linguistic background etc. but yes, gender interacts with other classifying criteria of identity. There is a definite overlap though, and so looking at deprivation and exclusion of women from the point of view of gender is very important. So, realizing that everybody’s struggle is different, and that yet we have a common basis, is important. That is where the challenge really lies. Elias: How does one resolve the contrast between the aspirations of a young, urban educated India that believes in the ‘Kiss of Love’ campaign and is seeking gender-equality and sexual-liberation, and the anti-women onslaught of conservative right-wing politics on the other hand?Dr. Chaudhary: I think when we talk about ‘empowerment’ and ‘Liberation’, understanding ‘Intersectionality’, ‘interdisciplinarity’ and ‘transdisciplinarity’ is important. I will give you an example. I am on child-care leave for a year, and that’s a good policy measure the government has put in place for working-mothers. It recognizes that for all the education and financial independence, motherhood is still a tiring job that requires a lot of energy, and this kind of societal reckoning of the challenges faced by working mothers is good, but when you talk of ‘empowerment’, questioning the very notion that ‘raising a child is the mother’s job’ is also important. That is the kind of reconciliation that is needed, that and understanding the material basis of deprivation and how the many aspects and categories of identity affect us and the questions we face, which can be taken care of by looking at the micro and macro picture together. Elias: What’s your take on the various laws and legislations we have in place in the country for protection of women from
harassment and gendered-violence? What changes do we need?Dr. Chaudhary: This is a vast area to comment on. There have been laws and there have been changes in these laws, for instance in the criminal law amendment act, 2013 they made sweeping changes and tried to address a lot of issues but things, social realities, don’t get changed overnight just because you have a new law in place. Similarly, looking at Hindu Women, we were not copartioners till as recently as 2005-06, which meant Hindu daughters did not have an equal share in property and succession. The 1986 amendment to the legal definition of ‘Prostitute’ wiped out the term ‘woman’ from the definition of prostitute, acknowledging that even a man can offer himself for paid sex, but societal connotations have not changed. When someone says prostitute, they still invariably mean a woman! Which means we need to look at Property inheritance and succession laws, at dowry, divorce, matrimonial disputes, custody cases, sexual harassment, all together and in great detail, and critically, and from a genuine feminist perspective, pointing out what’s wrong. Elias: Thanks a lot for your time and insights ma’am, what would be your concluding message for us, students?Dr. Chaudhary: My message for the students is, ‘learn to respect’. It’s not about ‘Tolerating’ others, it’s about learning to respect. Toleration is hierarchical, respect is equality. Whatever gender you identify yourself with, whatever religion you follow, whatever region or race or ethnicity you come from, whatever dress you wear, whatever your beliefs, I’ll respect you for that, not tolerate you. Similarly, I may be more influenced or inclined to Buddhism or Islam despite coming from Hindu parents, respect me for that, even if you disagree with me, do that in a respectful manner. Tolerance is hierarchy and we already have
enough of hierarchy around us on lines of gender, caste, community, ethnicity etc. etc. So, no more hierarchy, I don’t expect tolerance, I Expect respect.
After an astounding mandate in the 2014 general elections, the BJP led NDA government at the centre initiated a slew of economic and financial reforms to steer away the economic gloom that had set over the country. The then prime ministerial candidate, Narendra Modi, made several claims and promises to restore investor confidence and propel the growth rate of India. After 9 months in office, the union government has launched many policies and programs that have met with both praise and criticism from different fronts. Here, we take a glance at some of the policies adopted by the government that have become the talking point from the corporate boardrooms to the average common man, while everyone quietly hopes that the best is yet to come.
Pradhan Mantri Jan Dhan YojanaThis has quite easily been the Modi government’s most ambitious scheme for financial inclusion across the length and breadth of the country. Despite, many efforts by previous governments, financial inclusion has remained a distant reality in a country of 121 crore people where roughly 59% of households have a bank account. With special focus on rural households, the government aims to include each and every household into the formal banking sector so that they can avail benefits and subsidies. People are being given several incentives to open an account under this scheme such as
extending need based credit facilities and issuing the RuPay card which enables the account holders to operate their accounts and easy access cash management. Despite all the incentives that are being rendered, the program faces major operational challenges such as getting the rural households enrolled into the scheme and to encourage people to put money into their accounts which currently have been opened with a zero balance. Also, imparting financial literacy is as big a challenge as any. Although the scheme has potential to achieve comprehensive nation-wide financial inclusion, but if not implemented properly, many socio-economic aspects that the scheme aims towards will go unaddressed.
FDI in InsuranceThe Indian insurance market is one of the biggest in the world in terms of the volumes of money but still only about 25 per cent of the people have general insurance cover. Though the sector has immense potential, yet, it has been largely under-utilized. In 2001, the insurance sector was opened to foreign direct investment with the limit being set at 26 percent. Recently, the central government increased this cap to 49 percent and opened new avenues for foreign investors in this sector. This is aimed towards raising more capital from overseas. For long, the insurance sector has been suffering from inadequacy of funds which is preventing it to capture several under-insured markets.
As more capital flows into this sector, it would lead to more job creation and multifold increase in the manpower employed. Although the biggest challenge is to ensure transparency and flexibility in the amended bill so that the insurance sector penetrates the unbanked and un-insured markets of the country in the years to come.
Amended Land Acquisition ActThe government had to face a lot of resistance on this bill in both houses of the parliament as well as from several civil rights activists, who deemed this bill to be anti-farmer and anti-poor. This ordinance aims to ease the land acquisition laws for industrial and infrastructural development while seeking to strike a balance between agricultural welfare and economic development. The five areas where the consent clause in the bill can be bypassed is defence purposes, industrial corridor, rural infrastructure, affordable housing projects for poor and social infrastructure projects including public-private projects where ownership of the land will remain with the government. The government insists that the changes made in the act will give a much needed boost to stalled infrastructural projects and usher in a climate of positive investor confidence and economic prosperity.
Though, the government claims that it has kept the compensation slabs the same, it has had to face staunch opposition from different political parties on the account that the dilution of the bill is designed to benefit the corporate setup. While it is important to ensure that industrial projects get a speedy clearance from different government departments and land acquisition procedures so as to improve the industrial output and manufacturing base of the country. At the same time it is imperative that the rights of the farmers and land owners are safeguarded. If the target of equitable growth, which the Prime Minister had promised during the election campaigns, is to be achieved it is important to ensure the progress of all the sectors. Whether this bill is a step in that direction or just another act that looks good on paper, and lacks in implementation and practice, remains to be seen.
Labour ReformsMany of India’s labour laws date back to the colonial era. In the opinion of several analysts, these laws need to be reformed in order to boost the economy and to create more jobs. These reforms have been initiated to give an overhaul to India’s image as a global manufacturing hub. Several programs have been started as a part of these reforms such as giving easy access to the employees to their provident fund accounts. Also an online portal has been launched that will enable employers to file returns online for compliance with labour laws. Moreover, inspections will now be conducted by a method of drawing lots by a computer. The government also plans to increase the number of apprenticeship seats in ITIs, to facilitate the availability of skilled labour in the country. Although the trade unions have a different story to tell; many argue that the new reforms are designed to make hiring and firing easier for the firms and are against labour interests. Also, there is no law yet that makes it mandatory to recognize trade unions. The government argues that the reforms have been initiated with the aim of ensuring ease of doing business in the country, but whether it helps to improve India’s image as a manufacturing destination or fails to protect the rights and interests of the labour sector, only time can tell.
DisinvestmentThe current government has begun an aggressive disinvestment drive. Several public sector undertakings such as SAIL and Coal India have been opened for privatization. The government aims to raise almost $11.7 billion in asset sales to revive its finances and to meet its fiscal deficit targets. A mere 5 percent stake sold from SAIL can garner about Rs 1,500-1,700 crore for the exchequer. The disinvestment plan also includes a 5 percent stake sale in ONGC and a 10 percent stake sale in Coal
India. While selling stakes in public sector assets certainly will give some breathing space to the government while it boosts its revenue but it is not a long term solution. If the government wants to find a permanent solution to its fiscal woes it needs to overhaul its other sources of revenues and to give a makeover to the existing economic infrastructure.
Social Sector Expenditure CutsIn order to meet the fiscal deficit target for the current year, the government has undertaken massive cuts in several social sector programs. Many key areas such as education, health care, rural development and panchayati raj have had to face cuts up to 25% under the new approach of the government to revive the economy. As per the annual budget of 2015-16 the expenditure on education sector alone is proposed to be cut by Rs 11,000 crore. Followed by the health sector, whose allocation is proposed to be slashed by Rs 7,000 crore. Also, the ministry of agriculture had to face a cut of almost Rs 2,000 crore in its fund allocation. While going strong on the physical infrastructure sector, cutting funds from the above mentioned and several other key areas can cause serious ramifications in the future. The government must remember that its primary job is the welfare of the under-privileged and vulnerable sections of the society. Reining in investors and consolidating the fiscal deficit, though important, should not be done at the cost of these sectors, which are so important for upliftment of the society.
The above mentioned schemes and policies are but only a few initiatives launched by the central government to give a new direction to the economic scenario of India. A lot depends on the actual implementation of these schemes at the grass-root level and
how well they are able to affect the target group for whom it is designed.
What is the Theory?The theory here is to show that when free food is provided to people, it will always lead to a holistic improvement and development of the society. The aim here is to provide free food to the hungry. Societal norms for centuries have evidently shown that the inability to provide food for one's self and family is strongly linked with a low income level, which is largely correct, so the entire analysis here will be giving importance to those who suffer from serious economic constraints and low levels of income.
Why Food?Living beings are cursed with the inability to survive without food and water. Surely the time span of going without food varies, but sustaining one's self without any food is something we don’t come across. Where Darwin's Theory of the survival of the fittest does talk a little about the fact where those with more power and strength eat those lacking it, the jungle being a proof to his theory, it’s something that we as humans also come across often since the basic animalistic extinct lies in all of us. People have eaten one another in desperate times, foregoing their beliefs in morality and society, only for survival. It is particularly because hunger often drives people to such extremes that we can’t even imagine. For centuries wars have been fought for resources, food being one of the most
important of them, explorations in the old ages in the tribes and gypsies in search of food in order to sustain their selves. History provides us with enough examples that food is the most important thing.
In economics, we often talk about a break-even point. Providing two square meals a day has often been the breakeven point for survival. Biologically, the human body needs shelter to protect itself from harsh weather and unclean environment which if remains constant, is a onetime investment. The body demands only one thing to run itself, food and water. That’s all the body wants. Wants beyond that, is a psychological explanation which at no point in time, needs to be defined. Almost everything is justified so long as it is within the legal parameters of a State. Now let’s talk a little scientifically and socially as to why food is important. Scientifically, it provides us with the energy to run ourselves which provides a healthy welfare of our body, important for fighting against diseases and sustaining ourselves. Socially, a healthy body helps in improving performance or at least maintaining it. Since all achievements in life are linked with performance, ensuring a good health is important. Performance is also largely affected by psychological environments and incentive structures, but that is something we will deal with some other time.Food can be given to the humans as well as animals.
Food to the AnimalsPeople give food to the animals for their love for them and because they feel happy in doing so. They realize that unlike humans they cannot earn money and cannot enter into a transaction in the market in return for food. So people resort to giving them food which is of course, free, because there is no other way of exchanging the food with them. How is it good for humans? If I go
and make a value judgment of deciding how my money is to be spent, I have already judged that by doing that activity I am the happiest. The very fact that I give food to an animal rather than feeding my own selfmeans that I have decided that feeding them will give me more pleasure in doing so. And well, if I am satisfied with my choice and realize that the utility derived from the happiness of feeding an animal is more than that of feeding myself, it’s absolutely fine. Selfishly speaking, it is a maximization of one’s welfare but socially and ethically speaking, the responsibility of another living being has been taken upon one’s self which is absolutely legit in the state structure.
Why should we give free food?This is perhaps one of the most important questions a person would ask me. The world operates on rationality driven by incentive structures. 'What should I do in order to get something in return? What will I get in return if I do something?' The latter part is precisely what people do think about in this case. Rationality in economics talks about maximizing benefit. Rationality however does not however lay restrictions on whose benefit needs to be maximized. People when driven by slightly sensitive environments and backgrounds have a very passive ideology of a utilitarian concept. A utilitarian concept is also sometime perceived to be socialistic but so long as a person thinks beyond earning his own bread and thinks about another person, family or not, we in society tend to give him a higher social standing. That is why we always have good things to say about those engage themselves in charity. The reason for this is that rationality is often assumed to be driven towards maximizing self-interest. But when people realize that they have enough and the other doesn't, this ‘selfishness’ of rationality takes a back seat and this is precisely where many people are automatically inclined
towards contributing to such a program, whether they need to be explained why or why not they should be a part of it, their sensitivity already directs them towards this. So when a person asks, 'Why should I feed the poor?', I would say "You owe this to the society because the society provides with the ability and resources to you which enables you to be in your current situation', but the above explanation is itself taking a very aggressive front to justify the cause which is something we want the people to realize on their own, not forcefully. So instead, the better explanation is, "Many people die of hunger every day, and you have the ability to ease this pain of theirs." The result will depend on that persons will. Even if he doesn't contribute, somewhere these words should have a little impact on him which might change his actions in such situations in the future. And if that happens, in the long run, it has paid off.
The Economics of itFirstly before we go and establish the entire benefits of this entire model, we will make major assumptions to this entire theory. Considering the standard utility functions we will first narrow down the assumptions to get the perfect fitted utility function. We shall assume two goods here, x and y. Assuming x to be food and y would be everything else. Since y is everything else, y would be a composite good. X and y are goods that are consumed without any specific relationship existing between their consumptions. X and y are neither perfect substitutes nor perfect complimentary goods. Hence we shall assume a non-kinked function over here; hence the best fitted utility function would be a Cobb-Douglas utility function. Hence the function would take the form xayb respectively. Now we need to set a relationship between ‘a’ and ‘b’, hence we assume that a + b = c
(constant). For convenience sake we shall assume c = 1. Hence a +b = 1.
Now, let’s try to hypothesize what would be the values of ‘a’ and ‘b’. Intuitively speaking, the value of ‘a’ should be less than that of ‘b’. Here is where we use choice and the utility of money. For simplification if we assume the price of both the commodities to be 1, thus we have food and a composite good. Now, why would the utility derived from the other goods be more? Let’s assume I have 100 rupees. With 100 rupees I am going and buying food worth 100 rupees. Either I eat it today or I keep it and store it in terms of raw stock for the future. The pleasure derived for consuming it is short lived. The only time I realize I am getting utility while consuming it is when I eat it. Now, what happens when I can spend 100 rupees on the composite good ‘y’ with the money I have left with me. I can buy a number of things, a ball, paper, pens, batteries, a small clock etcetera. When I see them, the duration of their consumption is prolonged and when I get to use something for a longer time I get more Utility from it. The assumption here is that food consumption is short lived. Whereas all other material things bought here is long lived as a result of which people can prolong the utility derived by using that good againand again and as a result, the cumulative utility derived from those goods are more. Hence 100 rupees when spent on other good gives more utility than 100 rupees spent on food. This is how utility derived from the composite goods would be more.
The Benefits of Free FoodWhen I go and distribute free food to people, it has a twofold impact that is very important. Firstly, when I go and distribute free food I am providing food to those who spend a huge amount of their income on food in the first place. What happens when I
go and do so? He is able to save the money he would otherwise spend on food. The money saved can thus be spent on other goods, goods that would give him higher utility. As already shown, when money spent on other goods has a higher amount of utility derived when the same amount of money is spent on food, we see that the total utility derived increases as explained before. When I get a higher satisfaction level and can prolong its duration my overall welfare improves from status quo. As a result, I get a public that has a higher welfare. Higher welfare, not only in terms of a better health but also in terms of being better off due to a better situation. When I increase my expenditure on other goods due to this, I am creating a demand for other goods too. My demand for food is not falling because the people providing free food are already demanding and creating food for them, so the demand is already there. I create an additional amount of demand in the economy in terms of other goods. Secondly, I can save money for things that can be used in future. I am reducing the propensity to steal for petty matters since some crimes are performed because some people are suffering from serious economic constraints. Certainly it will not stop but it can certainly reduce slowly. People have a better health and can perform better, be it manual work or so. The benefits for this entire thing are something that creates additional demand for goods in the economy leading to higher profits, higher expansion plans, higher employment and higher incomes and higher demand and the cycle continues. When people are asked to save money and open bank accounts from the money they save, they create more money available in the economy, money being spent and available for better avenues and investment, possibly reducing the interest rates slightly. When the government educates people to take up life and health insurances issued by the
government from the money they save just by preventing them being spent on meals you lead a safer future with lower risk and better outcomes in life.
Who would provide free food?The government can do so. The government and state enter into a Social Contract with the people. When you enter into a social contract with the people, the peoples’ responsibility does fall on the state. The state knows that people die of hunger. To ensure their welfare, it is legitimate that people demand for the state to look after this welfare of the people. The government can set up NGOs to demand funds from the general public. The people don’t mind giving a little money. There are many people that are interested in doing so. Proof of this statement is the thriving business of NGOs and how people show interest in their responsibility towards society. The government can simply employ the techniques of economies of scale. People use firewood and LPG gas cylinders. When food for 1000 people is cooked in 300 different households, the total cost of spending and resources used are significantly higher as against food cooked for 1000 people at 5 places. The raw material used is less. Gas is a significant expenditure. This is where poor people would always want to save money and always try to do so. This activity is something that can be outsourced to the charity houses. The government does believe in the ideology of free food, Mid-Day Meals being a proof to this entire thing. Now, is there a demand for free food? Do people take it on their prestige of not eating free food if they are poor? The answer to that is a no. They are always in search of it. Religious institutions are proof to this skepticism. Hence here demand and supply of food is justified how it helps.
To conclude, free food if given leads to a better situation. The world understands the importance of food. That is why there is a World Hunger Project, a Food Bill and all sorts of measures to provide free food. This was just a theory of how free food is cheaper and beneficial not only for its recipients, but also for many other people in a country, directly or indirectly. The country will definitely benefit from it.
Communal Onslaught in India and its Effect on Welfare
Few of the main causes of violence in our society are poverty and inequality. This observation has also been supported by evidences from the studies of Amartya Sen. Needless to say, poverty and the numbers of criminal incidences often have a strong positive correlation. Poverty leads to social and psychological pressures that in turn lead to exploitation of women and children in the workforce due to which domestic violence and child abuse have become a commonplace in developing countries. Moreover there are conflicts between ethnic and religious groups that may lead to inter-communal violence. These also have consequences on social welfare.
At this point a question is raised that whether the governments of developing countries can provide welfare service to their citizens or not. To prevent rise in poverty, government mainly moves to welfare cuts (such as by increasing tariff rates, etc.), this is done in order to reduce the expenditure. Some people just aren’t bothered by welfare cuts but whether these cuts cause social disorder or not. It’s
important here to be clear about the meaning of ‘disorder’; it includes assassinations, revolutions, major riots, and large political demonstrations and strikes.This takes us back to some classic theories of the welfare state. I shall refer to Marxist theories of the welfare state, as many theorists note that the welfare state is valuable to capitalism as it helps economic growth by providing a skilled workforce and it assures the continued existence of the capitalist system by enhancing stability. Sometimes people forget these important functions of the welfare state, mistakenly thinking that it is all about redistribution and fairness. We can here say that austerity may not just lead to poverty and weaker economic growth, but it can also cause wider problems of disorder and injustice. So we can notice that it is somewhat vicious circle affair where poverty leads to violence and violence leads to reduction in economic growth.
Let us talk about Indian events of communal riots and violence and how it affects the society and democracy.
India is the largest democracy in the world. No other country shows the diversified nature of people living together as India does. We can see people from different castes, backgrounds, cultures living in a single street and in the same areas. The close interaction between people has resulted in stronger ties, cross cultural exchange and learning. This has turned the society of India into a Semi-westernized society. Semi westernized society mainly means the involvement of western society practices. However the presence of a strong democratic spirit in our society is often questionable when we encounter cases where talking of a Hindu girl to a Muslim boy was condemned and the girl was beaten up for giving up her Hindu value systems by
interacting with him!
While talking of communal violence in India one cannot ignore riots because Indian history has seen few of the most deadly riots and massacres. As per news, the Gujarat riot in 2002 was one of the worst communal carnages in India. There have been other instances as well such as the Varanassi bombings of 2006, Kadhamal riots in Orissa, in 2008, Mumbai Massacre on November 26th, 2008, 2012 Assam violence, and the Dharbha Garti massacre in May 2013 and clashes between some members of the Jat and Muslim communities had broken out recently in parts of the communally-sensitive district (On 21 August 2013, Muzafarnagar riots in September 2013). According to a student of International politics, In India, riots are often portrayed as a ‘spontaneous’ reaction to an event that acted as a trigger, where the rioters are anti-social extremist elements who threaten peace and amity between communities. This narrative distances the violence from the masses, ignores the shattering silence of the majority and more importantly, does not identify the political actors, authorities who gain from these riots and therefore instigate or refuse to prevent them. Part of this narrative is the act of pronouncing both communities equally responsible for the violence, even when the casualties are overwhelmingly on one side. This is at best a misguided attempt to be ‘neutral’ and at worst is a deliberate attempt to absolve a community of guilt.
Latest words by RSS chief Mohan Bhagwat in Kolkata , "There is no need to fear. We are not intruders or infiltrators. This is our rashtra (nation), Hindu rashtra. We are trying to bring back people who have been lured away. What we have lost in the past, we will try to bring it back." describing
India as a "Hindu nation" and justifying religious conversions. Studies also suggest that, the ‘healthy’ idea of seeking votes has transformed into a vicious process in India that depends on religious identity with political identity .It mainly links to 'majority and minority' vote bank . Sustaining a ‘vote bank’ has often meant the usage of religious symbols and icons, hateful portrayals of ‘the other’ and it leads to creating an environment where communal violence is more acceptable than it should be.
Social unrest can have a longer lasting negative impact on a local economy; As Marx rightly says “Religion often turns out to be the 'opiate of masses'. It is more persistent than any damage caused by natural disaster.”
Social science scholars have suggested that economic stagnation is one important cause of communal riots, and that on the other side there’s a lower incidence of riots in a growing economy. It’s not hard to see why. As Wall Street Journal explains, “In a stagnant economy, the size of the economic pie is fixed, and the battle for resources is a “zero-sum” game: one person’s gain is another’s loss, a state of affairs mirrored darkly in the looting element of a riot.” By contrast, in a booming economy, the pie is growing and people have much to gain by getting along as everyone potentially gets a bigger slice of the growing pie that could be threatened by communal violence. The “opportunity cost” of participating in a riot is higher when times are good, both because it takes the perpetrator away from a more productive activity and raises the stakes if caught or killed. By the same token, when times are bad, instigators of communal violence will find it easier to recruit discontented and unemployed youths who have little to lose. A related argument is that opportunistic politicians may choose to stir
up communal tensions during bad economic times to distract their supporters and channel their frustration in another direction. Now that stronger civic ties also foster more rapid growth, say because communally harmonious regions are more attractive for investment, which in turn leads to more rapid capital accumulation and therefore faster growth. Again, we would observe the negative correlation between growth and riots.
We can conclude that Communal violence is one of the major threats to Indian democracy and many developing countries. It has been a barrier to the socio- economic development. In India, Prevention of communal and targeted violence (Access to Justice and reparations) Bill, 2011 is one of the latest bills introduced in the Parliament with an agenda to prevent communal clashes. The sooner the violence ends, the faster the local economy can begin to heal.
It’s weird we all call ourselves ‘civilized’ but if we deeply introspect ourselves & the society in the macro sense, I wonder if we would still firmly take that stand. It’s baffling that we the people, responsible individuals, essentially social and integral parts of the society, we the people who are the masters of the planet, are reduced to helpless victims, when it comes to succumbing to prejudice and xenophobia, exclusionary thinking and discriminatory behavior, when it comes to what is commonly known as ‘Communalism’.
Communalism is an entity that makes us stoop lower than the level of animals; for even animals do not kill simply for the lust of blood. We humans have thoughtlessly divided ourselves up on the basis of religion, caste & community and Communalism is one sociopathic disorder that has the potential to radically transform even the apparently most ‘ rational’ of humans into bloodthirsty beasts that impulsively attack & decimate the identity of other individuals, communally.
I personally believe that at any given point of time, such political, religious & social pressures persist in every society. It is high time that we enlighten ourselves with the true value of Humanity & realize there’s more to life than religion, caste, creed, community, race, ethnicity & gender. As young men and women, living in the subcontinent, our immediate social context and contemporary communal tensions must force us to rethink where we’re headed as a society. Realizing the worth and merit of the civilizational virtues of Equality, Liberty and Justice is pertinent, and the onslaught of Communal forces needs to be countered with refocusing on the social and political debates with a sense of urgency, both as a nation-state and as a society.
Sustainable Development: Moving towards a Better Future
“Development that meets the needs of the present without compromising the ability of future generations to meet their own needs”-
This is the definition of sustainable development given by World commission on
environment and development, but what does it actually mean? What are the basic goals of our life? We all want to travel in our own cars, work in well air-conditioned rooms, and want an expensive mobile phone, a clean hygienic environment to live, constant growth –socially, mentally and economically. But are this all things achievable together? We can have jobs that pay us a huge amount as salaries and buy a car from it but for obtaining that leisure, we have to trade off the clean environment. If we want to breathe in fresh air, we need to forgo the air conditioner, adding more burdens to the atmosphere. But we need to make these decisions rationally in order to opt for a sustainable development.
Development of any country comprises its social, economic, technical and environmental growth; to develop sustainably we need to focus on all four aspects and not give more importance to a single factor. The fact is that resources are limited and we have to use them in such a way that neither we compromise in present nor in future. Economic development consists of industrial growth but it conflicts with environmental growth, but for long run, economic and environment growth has to go hand in hand. Our ecosystem is a pool of endless products which are used by industries for manufacturing processes so by saving our environment we can help in economic development.
It has been proven from studies that countries with degraded or unsustainably used ecosystem have low standard of living and high poverty. The knowledge of link between human well-being and ecosystem services can help in reduction of poverty and improve the standards of life while protecting and enhancing ecosystem services.
Sustainable development at world level has emphasised on intergenerational equity which means ensuring that our decisions for this generation does not have negative effects on our coming generations .Also we have to consider that we cannot make everyone better off so for developing countries the more focus is on economic development then environment degradation but developed countries should consider environment as their priority. Sustainable development requires us to see the world as a system that connects space and that in turn connects time. World as a system over space helps us to understand the fact that our pollution from North America affects our quality in Asia.
Some of the common examples of sustainable development practices are: Solar and wind energy : Since the generation of hydroelectricity adds a lot of pressure on our environment , we can use alternate ways such as use of renewable sources of energy like solar and wind energy. These resources are limitless and hence the use of these can lend a hand in the saving of our environment. Crop Rotation: this method can be used as a chemical free way to increase the fertility of the soil and increase the growth potential of the crops. Water fixtures: there are many products available in the markets that make use of less water for completing our daily needs. We should prefer them over our conventional sources. Energy efficient appliances: using these kinds of appliances can help us to conserve energy.
Sustainable development not only includes environment conservation but also comprises of overall development of countries, it is termed as “our common future” .There are many inequalities in World such as 20 richest people of World have more money than GDP of south Africa,
a whole country. We need to develop to bring equality and efficiency in the world as a whole.
Not just the government but at individual level one should also plan his daily activities and future goals such that we save our environment and its valuable resources for our future generations. It’s the basic law of nature that if you have to consume more tomorrow you have to save today. Keeping these things in mind we should use the resources in such a way that we may attain efficiency and sustainable development is our only hope to do this! “Tomorrow belongs to the people who prepare for it today”
“They (Indian women) have many and grave problems, but, none that are not to be solved with the magic word ‘Education’ ”. -Swami Vivekananda
The progress of a nation primarily depends upon the status of its women. The democratic establishment is incomplete if the condition of women in any society is not on par with the rest. Women in India comprise a little less than half of the total population and they could be seen, today, leading from front in every walk of life; from Science and Technology to Education to Corporate world to Media galleries. But unfortunately due to some regressive parochial restraints, prevalent and persistent, over decades and decades, we, even as being one of the vibrant democracies in the post-
colonial era, were unable to fructify the strengths of our women workforce.
Human development report, 2014 (published by United Nations Development Office) deftly says “worldwide the female HDI value averages about 8% lower than the male HDI value. Among regions, the largest gaps, is in South Asia (17 per-cent)”. It is also stated in the report that how women are subject to neglect and discrimination in health, education and employment world over (barring a few, high developed countries). Since we (India) harbor the largest chunk of populace of women in South Asia, the contribution of ours, in the plight of women, is beyond doubts.
Literacy rate for women in India is 65 and a half percent while, per contra, male literacy is 82.14 percent–leading us to a net literacy rate for India (on a whole) to 74.4 percentage points. More than 10 states have (female and on the whole) literacy rate lesser than the national average. Some of them like Kerala, Mizoram and Lakshadweep have impressive to satisfactory results but some like Bihar, Jharkhand, Andhra Pradesh and Uttar Pradesh have alarmingly dis-satisfactory results (way below the national average).
Now let’s get to the root of the issue that why after so many years of self-rule and being one of the fastest growing economies in the world- we have failed remarkably to provide every Indian citizen an essential right - which is right to read and write. The deep rooted patriarchal, misogynist culture, the centuries old customs and beliefs, imbalanced sex-ratios (and particularly child sex-ratio), female infanticide, ill-nourishment for girl-child, high infrastructural gaps are some of the prominent contributors to the widespread women-illiteracy in India. The dropout from
elementary education is ‘extremely high’ considering the girl-child and as per UNICEF report there are 80 million children not completing the full cycle of elementary education. Although the gross enrolment of children in primary schools are impressive at around 98 percent for a couple of years but the quality of education being provided is abysmal.
62 percent were girls among the net out-of-school children in 2008; they make up two third of illiterate in the age group of 15 to 24-years. The reasons for drop-outs are manifold; income inefficiency of parents, lack of quality education and insanitation-at-campus are prominent ones.
These glitches at the primary and secondary level profoundly hamper the number of girls at senior secondary levels. Although the number of girls securing the marks per hundred percent are periodically higher in comparison to boys but the gross number of enrolment of boys outnumbers the girls every year. The enrolment of women in higher education have gone up and in 2010-11 (as per UGC reports), it was 41.5 percent but there are a lot of impediments such as poor quality of education, financial constraints, lack of job opportunities, and many social biases which dispels women from getting a higher educational-degree.
Now coming to the employment scenario of women in India, the contribution of women to work-force is quite disparaging; it is about 33 percent out of their total populace in comparison to 81 percent of male to their total populace. While the participation of women to work force in countries like Nepal, Bhutan, Bangladesh and Sri Lanka has a higher participation than us; China is way ahead of us, its women participation to labor force is 68 percent. Among Indian states one of the lowest female labor
participation is in Delhi, presumably because of its ill-treatment to women.
Most of the women in India never constitute a part of labor force because they are actively engaged in ‘attending domestic works’ which is officially non-reported. According to national sample survey records, in 2009-10 out of every one thousand females in India’s rural areas, 347 were attending to domestic works. In case of urban females, the number is even bigger: 465 per thousand. Whereas the rural and urban men attending to house hold works were only 5 and 4 out of one thousand respectively.
If we take categorically - in rural areas, women participate in agriculture often to support their family in distress or as a part of disguised unemployment. Manufacturing sector’s contribution in creating job opportunities for women is also bleak. Between 1999-2000 and 2004-2005, women accounted for 3.7 million of the 9.7 million new manufacturing jobs created in the country; a large portion of them were employed in export-oriented sector like garment making and processing. A slow-down in export demand from western countries during 2004-05 and 2009-10 compelled the sector to downscale the employee-size and as a result out of total job-loss 80 percent were women.
Among the most job provider sector, ‘Services sector’ was always ahead but most of those women labor force were driven into low-wage jobs. Only 20 percent of the new job created in financing, real estate and business services during the 2000’s, and 10 percent of the new jobs generated in computer and related activities during the second half of the 2000’s.
Eminent Human Economist Dr. Amartya Sen in his report to New York Review of Books titled ‘‘More than 100 million women are missing’’- stupendously brought out the fact that how social biases towards girl-child, malnourishment, deep patriarchal notions-causing dishonor to gender-ratio; and this gender disparity issue runs parallel to the fewer female participation in Indian labor-force. Feeble job opportunities for women, discrimination in wages, prejudiced society, ill-targeted policies of the government and its political will to create job opportunities are the complementary ones.
In India, the total number of women doing house hold chores were 216 million in 2009-10: which was larger than the entire population of Russia, Canada and Australia putting together. Clearly the large scale withdrawal of women from Indian labor-force involves tremendous waste of talent and a huge opportunity cost to the nation. As the women participation in economy will increase so as their voice against the injustices perpetrated against them. What else one could expect from a liberal democratic society, if not the dignity and equality for its women..!!
Deprivation needs to be understood as a denial of some sort. It can be the denial of Capabilities creation or the denial of fair and equal income opportunities, the denial to
mix freely in Society or the denial to take decisions. Deprivation of Financial Autonomy amongst poor women refers to the denial of the freedom to spend money even in cases where these women are earning money. I am writing to bring to your notice an interesting phenomenon that I encountered while collecting data for my search work. Out of a mixed sample of more than 700 wage-earning and financially-dependent women, 680 across the financial spectrum responded in positive to lack or absence of financial autonomy.
These women are denied the right to spend money as per their wish, to the extent that most women even when earning, are not free to spend their own earnings. I want you to understand the dynamics of the situation even if we begin by forgetting about the financially dependent women and think only about those who are earning. A Woman in most cases is supposed to ‘ask’ someone (even if it is an older woman in the family), before she actually spends her own earnings. The worst part here is that most women do not mind asking or taking permission. This is one of the draconian patriarchal norms that has gotten deeply embedded and internalized in the minds of women. The problem with ‘The Norm’ (any norm) is that very few find the norm upsetting or wrong! In fact the simple act of ‘taking permission’ is not that simple. It implies either an innate lack of decision-making ability on part of the individual or a forced deprivation of the autonomy to do so. The forced deprivation if imbibed in the consciousness is intrinsically detrimental for the growth of the individual as well as the society. Decision-Autonomy is the most important and basic capacity that any ‘Rational Individual’ is supposed to develop. If you bring in the picture, financially dependent women, I Hope you’d be able to realize the gravity and magnitude of the
problem. This should set you re-thinking on the basics of economic theory, the indifference curve, notions of individual rationality and so on. One can only wonder how far these will hold if the ability to voluntarily spend were to vanish. The externality of ‘asking’ breaks down even the most fundamental of our theories.I do not wish to conclude. I want you to keep thinking on the absence of ability to take decisions and breaking down the economic theories that you’ve picked up all this while, and then conclude for yourselves by asking yourself, how rational is the ‘Simple act of seeking permission before spending money’.
------------------------------------------------------Game Theory: An Introduction
Most simply put, Game theory is the study of strategic decision-making, where a game means a formal representation of a situation in which individuals interact in a setting of strategic interdependence, i.e. an individual’s welfare depends not only on his actions but also actions of his/her fellow players. Game theoretic models are used in a wide range of subjects including economics, philosophy cognitive psychology, evolutionary biology, operations research etc. It is used to analyze real life situations like the median voter problem, public good and contribution issues, jury members deciding on a verdict, bidding and auctions, firms competing for market-share etc.Information-wise, a game is completely described by the following 4 things: The players: Who is involved? The Rules: Who moves when? What do they know? What can they do? The outcomes: For each
possible set of actions by the players, what is the outcome of the game? The payoffs: What are the players’ preferences (i.e. utility functions) over the possible outcomes?
A Brief HistorySome Game theoretic ideas can be traced to the 18th century but the major development of the game theory began in 1920s with thework of mathematician Emile Borel (1871 –1956) and the polymath John Von Neumann (1903- 1957). A decisive event in the development of the theory was the publication in 1944 of the book “Theory of Games and Economic Behavior” by Von Neumann and Oskar Morgenstern, which established the foundations of the field. In early 1950s John F Nash developed a key concept (Nash Equilibrium) and initiated the game theoretic study of bargaining. Soon after Nash’s work game Theoretic models began to be used in other fields as well. Subsequently game theoretic methods have come to dominate microeconomic theory and are also used in many other fields of economics and other social and behavioral sciences.
The Prisoner’s Dilemma: One of the most famous and widely studied games is the prisoner’s dilemma, defined by the following rules, Players : Two Prisoners, Rules: They are kept in isolated rooms. Both of them are interrogated about their crimes separately. Both of them have two options of either remaining quiet or finking on their partners. The most commonly enforced Solution to this category of strategic games is an action profile with the property that no player can do better by choosing any other action given the other’s players actions in equilibrium. Such action profile is known as Nash Equilibrium. Mathematically Ui(ai) >= Ui(ai,a-i), i.e. For every action ai of player i, a* is Nash Equilibrium. Accordingly, in the prisoners dilemma, a* = f,f is a unique Nash
Equilibrium, where each player has an incentive to fink no matter what other player choses to do. For e.., if player one decides to remain quiet it’s better for player two to fink and go free. Prisoners’ dilemma’s result is fascinating, both theoretically and in practical conduct. Two rational (self-interested) individuals produce an outcome (f,f) that is non-optimal. Optimal outcome is (q,q). A discovery that literally shattered the rational premise of Smith’s self-settling markets and aggregative rationality.
Cournot’s Oligopoly Game Another interesting game defined by the following rules; Players: Firms. Actions: Choosing Output. Preferences: Preferences are represented by profits. In this game, there are two similar firms in the market. Each firm has knowledge about market completely. The aim is to maximize profits. For linear, interceptal demand for both firms, summing up to a linear total, where the cost of producing q units of output by any firm will be cq. Now each firm has control only over their output. To Maximize their price-product (cost discounted) profit, given other firm’s output, partial derivatives of Profits are equated, generating what are known as the firms’ ‘best response functions’.. It tells us the quantity firm one needs to produce given output of firm two in order to maximize profits. Simultaneously solving which, we get the optimal output (Nash Equilibrium); again a result that challenges conventional assumptions about firm behavior and opens up a window for reductive analysis of what is essentially, a complex multi-stage dynamic model of interaction.
Game theory, thus, gives us an interesting new perspective on conventional problems of economic theory, for one, and its insights used together with the empirical and
experimental methods of Experimental Economics and Econometric Modeling, throws the whole world of theory up for grabs!
References for further reading: An introduction to game theory by Martin J. Osborne, Microeconomic theory by Mascollel, Whinston, Green.------------------------------------------------------
When I was small and unconcerned about anything in life but myself (well, I still am), my elder sister had taken it as her responsibility to make a better human being out of me. She started with teaching me the importance of keeping every place as clean as you possibly can, and has come a long way since, in having started her own little Clean India Program at our home.I remember as a child, whenever I was in the process of littering I was bombarded with questions, was what I throwing away mindlessly was bio degradable or not? Did I realize that if I threw away this one polythene packet I would still find it there for 10, 20, 30 years, even million years for that matter? Did I not feel the need to keep it in my bag and use the dust bin at home or wherever I could find? Would I still behave this way if I was in a foreign country? Would I not make the world a cleaner place by not throwing away the tiny toffee wrapper? It seemed like too much effort to me, and I hated being continuously nagged for it, but I was scared of my sister’s scolding. So I complied and slowly and
unknowingly, this habit became ingrained in my delicate little mind. ‘Use the dustbin’; just one simple rule! On the 2nd October 2014, Prime Minister, Mr. Modi launched the “Swacch Bharat Abhiyan” which started on a high note, with everyone’s active (forced?) participation, though notoriously coinciding (over-riding Gandhi Jayanti?). Anyways, with this, one day in a year was dedicated to remember to clean the dirt we had accumulated over the years. Alas! After two thousand and fourteen years Anno Domini of our civilization we required a separate Project to keeping clean the world we live in!
Though the “Swacch Bharat Abhiyan” is arranged around general cleanliness and sanitation, looking at the problems that have come to light in recent times, maybe a Clean Indian Mind Program should be next on the tables. After all, cleaning the garbage that has been dumped into the minds of the population is equally important. So that the next time someone doesn’t drop the half eaten chips packet on the side of the road not because some nation- wide campaign tells them to, but because they know that’s what they should not do in the first place. So that the next time when two people decide to fall in love they don’t have to look at their castes or religion or village for that matter; so that next time people cannot justify to anyone or themselves killing someone in the name of honor; so that next time when my friend goes to a place I have visited before, she doesn’t have to call me up and ask what kind of clothes would be safe to take along; so that next time a woman goes out at night, she knows that she will be back home as safely as she would like to be; so that next time a politician asks the people to forgive boys because they make “mistakes”, all the boys come up and say that they are human beings with sound thinking capacity and neither do they make such “mistakes” nor do
they approve of them; so that next time no Mosque, Church or Temple is burnt in the name of religion; so that next time a lady bears a girl child she is not looked down upon; so that the next time a child is born in a clean India inside out.
--------------------------------------WORDS-WORTH! From 'Utho Meri dunya ke ghareebon ko'By Allama Mohammad Iqbal
اٹھو میری دنیا کے غریبوں کو جگا دوو دیوار ہال دوکاِخ ُامرا کے در
Rise, and from their slumber wake the poor of the world!
Shake the walls of the mansions of the rich!
گرماؤ غالموں کا لہو سوز یقیں سےکنجکشِک فرومایہ کو شاہیں سے لڑا دو
Kindle with the fire of faith the blood of slaves!
Make the fearful sparrow bold enough to fight the falcon!
سلطانیء جمہور کا آتا ہے زمانہجو نقش کہن تم کو نظر آے مٹا دو
Close approaches the hour of the kingdom of the poor,
Annihilate every imprint of tyrrany!
جس کھیت سے دہقاں کو میسر نہیں روزیجال دو اس کھیت کے ہر خوشہ گندم کو
Garner in the furnace, every straw, every grain of the field
that does not give bread to the peasant!
Compiled by Team ‘Rise’Presented at the 4th annual Economics Symposium, ZHDC by Shahid Mohammad Nengroo and Elias Borgoyari, B.A.( Hons.) Economics.
BOOK NOOK
‘Contours of the World Economy, 1-2030 AD. Essays on Macro-Economic History’,2007, Paperback: 432 pages, Publisher: OUP Oxford By Angus Maddison
This seminal work by Professor Angus Maddison is an attempt to summarize the historic and political context of global economic developments over the course of more than two centuries. Given his rich personal experience and wide-ranging research in both the developed and developing world, and the ever-expanding database on Poverty, Inequality, Education, Health, Productivity and employment at his disposal, and his long years of teaching and research at Groningen, Maddison was better suited than most of his contemporaries, to attempt a research and writing challenge of such stupendous magnitude.
The book opens with a tentative estimate of the population and GDP of ancient Rome preceded by a succinct description of the political rise and fall of the empire. The estimates are followed by an exposition on how the army’s large and volatile expenditure were responsible for most of the socio-economic disturbances and disequilibria of the times. Subsequent chapters talk about, in Maddison’s words, “The resurrection of western Europe and the transformation of the Americas”, explaining the process of accumulation of wealth by the ‘West’, caused mostly by accumulation of physical and human capital, trade with America, colonization and resultant gains from division of labour. Asia’s interaction with Western Europe and consequent socio-
institutional stagnation in the Indian Sub-continent is also beautifully presented through both theoretical argument and empirical evidence. The Arab conquest of North Africa and the Colonial enslavement of the African Peninsula by Western Europe is discussed next. Following this discussion on, in Maddison’s own words, “How South Africa lost as many as 23 million people, enslaved and exported overseas from 650 up to 1900 AD”, is obviously a heart-wrenching experience for any reader.
The book culminates into a final discussion of how measurement of economic growth, development and prosperity has instead become the center-point of discussion after the 1960s and has had obvious and wide-ranging consequences for policy-making, both at the macro-national and global levels. The hypothesis is clear and well argued for, while better pre-conditions for growth (1000-1820) in Western Europe set the bases for rapid growth, colonization and imperial assertion of economic authority kept Europe’s Industrial Furnaces going in the subsequent period. If Maddison’s wisdom is to be put to good use, experiences of the past are obviously meant to be used as lessons for the future, and if anything is to be learnt from ancient Rome’s overt Militarization, ‘where the global economy and polity is headed’, is a pertinent and pressing question that needs to be asked.
----------------------------------------------OPINIONSExcerpts from selected essays on ‘The Great Indian Dream: Inclusive Growth for 1.25 billion’ [From the essay-writing competition in the 4th annual economics symposium]
“Martin Luther King Jr., one of my favourites, fought for civil rights in the
United states and helped the poor to uplift themselves from the throes of poverty. He was inspired by a son of India, Mahatma Gandhi and he told us, if we want a historic change in history, we need to stand up and fight for ourselves, and bend the arc of history towards justice. This is what the great dream of India is”. “Equal opportunities must be given to everyone, Investments in social welfare schemes must go up, scholarships must be given to poor students living in rural India, programmes such as the ‘Mid-Day Meal’ scheme should be promoted, Investments in technology must so that people in rural India live with dignity”. Udayan Singh, B.A. Hons. Mathematics, III yr
“Diversity is both, India’s greatest strength and its biggest disadvantage. That is why Politicians are able to rouse feelings of unity amongst one set of people and community while alienating another set. The dilemma that India as a nation faces is, the key to our growth rests on the shoulders of giant corporations. How can you expect the law-makers to prioritize inclusive growth when they have their finances flowing to and from the richest 0.1%?” Karan Marwah, B.A. Hons. Economics, III yr
“We are the 99%. This slogan resounded through the streets of USA in 2013 and reverberated across the world through global media. Wallstreet protestors, who raised this slogan, were protesting against the scourge of inequality that had infected the collective conscience of America. Though the protest lost its momentum by 2014, it had two important ramifications. First, it unravelled the stark failure of the so called ‘American Dream’, Secondly, it brought to the forefront the theme of income inequality, which was long forgotten in economic literature, which has its characteristic fetishism toward economic growth. America has miserably
failed in its pursuit of securing equality among its citizens, with a Gini-Coefficient lesser than that of Nigeria”!, “When the British left India in 1947, Indian Economy was in shambles, and while India was one of the most prosperous countries in the 16th and 17th centuries, about two centuries of colonial subjugation had pauperized the country ”. “Great leaders like Gandhi ji, Nehru and Abul Kalam Azad had a vision for India; India as a self-sufficient village republic, rich with technological advancement and education for all, this was the dream of India, which we have mostly failed to realize, because of lop-sided developmental policies, that have led to rise in inequality of income and opportunity ”. “If this inequality is not addressed, growth itself will be at stake. The mustering of strength of red-wing (Maoist) extremism is a testimony to this. Only if inequality is addressed in policy, will Gandhi’s dream of a self-sufficient village republic come true. For this we need to focus our Economic policies towards the 99%, as the Wallstreet protestors suggested. ” E.A. Ibrahim, M.A. (Previous) Economics, CESP, JNU
Compiled by Team ‘Rise’
----------------------------------------------Annual Report of the Economics SocietyThe Economics Society organized the Fourth Annual Economics Symposium of the department on the 13th of March, 2015, flagged off by the inaugural lecture on ‘Indian Economy and the challenge of Human Development’ by Prof. Halima Sadia Rizvi, Dept. of Economics, Jamia Millia, Islamia. The speaker highlighted Education, Health and Inclusion as major challenges of development for the sub-continent. The role of ‘Education’ in Capability development and the significance of ‘Free-enquiry’ and ‘rational debate’ as
crucial links to the process of education, was emphasized. The need for a clear synthesis of historic and Economic facts in understanding ‘Development’ was highlighted, citing data and debates from Angus Maddison’s (Contours of the World Economy). The socio-political context of the process by which the famous ‘Human Development Index’ was developed for the United Nation’s Development Program by Mahboob-ul-Haq, Amartya Sen and Paul Streeten was also elaborated upon. Finally, in response to questions about Social Sector expenditure cuts in the current budget, the need and urgency of incorporating measures for social justice and targeted affirmative action for Women/Minorities/Dalits/Tribals in the country’s social policy was highlighted. The discussion was followed by an elaborate interaction with the students and members from editorial team of the youth magazine ‘Outliers’, media-partners for the symposium.
The lecture was followed by a poster-making competition, on the theme, ‘Poverty, Inequality and the great Indian Dream’ followed by other events including Inter-College Quiz, Debate on the theme ‘Budget 2015: Making the rich, richer’, and Essay Writing on ‘Inclusive Development for 1.25 billion’. The Fourth issue of the Department’s Annual Journal ‘Rise’ was released in the Symposium, along with the journal’s online version. The Society is organizing a field-trip for selected members of the Journal’s editorial board to Pahalgam, Kashmir, for a seminar on ‘Women and Education’. The following faculty and student members will be speaking/making presentations, Simin Akhter Naqvi (Speaker), Sukriti Hatgaonkar, Harsh Mittal, Rimsha Jameel (Panelists). The Society also takes pride in the selection of our student, Sukriti Hatgaonkar for presenting a paper entitled, ‘Empowering
Indian Women through Self Help Groups’ in a Seminar on ‘Gender and Livelihood: Opportunities and challenges’, organised by Barkatullah University, Bhopal.
Statutory Declaration: Though views expressed by individual authors are their own, we, at ‘Rise’ stand in un-wagering solidarity and support. The Department of Economics and Zakir Husain Delhi College, however, bear no responsibility for the same.
Published by; Department of Economics, Zakir Husain Delhi College, (University of Delhi), Jawaharlal Nehru Marg, New Delhi-110002
