In the process of globalization, education in India is playing key role in coping up with the rapid changes taking place in all types of business activities. The focus is on maintaining good quality of education in India. The institutes are operating in almost all corners of the country. They are varied in nature, size and structure. The variation is because of variety of socio-economic factors influencing working of them.These institutes are broadly classified into three categories based on locations and socio-economic circumstances.
‘A’ category includes institutes in big metro cities.
‘B’ category covers institutes in next larger cities
‘C’ category are mostly urban, semi urban and rural
Presently quality parameters for all the institutes in India are uniformly set. Quality expectations from Industry, controlling bodies are similar or same for all the institutes without considering variations in socio-economic status of the region in which these institutes are functioning. Regional Institutes are trying to conform in this race with quality norms set by quality controlling authorities. Quality is perceived differently at different places. The basic expectation from quality is, it must satisfy the needs of the stakeholders. These needs can be different at different socio-economic zones of the country. Setting same or similar parameters for all the colleges in India may do injustice to the institutes functioning in rural area. It is relevant to study quality parameters to be set for regional institutes taking into consideration the socio-economic and academic constraints Regional Institutes have to face various challenges to survive in this area. Every Institute has same stakeholders but their demands differ as per their Socio-economic background. And the Socio- economic status of the rural area is quite low as compared to the metros or big cities. So this is the basic difference between these big cities or Metros and rural Institutes. In the further part we discuss the challenges & pressures on the regional Institutes.The regional institutes are to cater regional needs. The significant task is to identify management education needs and take necessary steps to fulfill the needs ensuring appropriate quality of management education. B-Schools in rural India need to focus their efforts on these tasks.
(1) Objectives of The Research paper-----
(1.1) To identify research & techniques with education needs
(1.2) To understand nature of the problems of in rural areas.
(1.3) To study the role of rural community in addressing education needs in rural
(2) Hypothesis of the research paper
(2.1) The present norms and standards set & rural Control exercises are redesigned considering socio-economic and academic constraints.
(2.2) Reducing problems of in rural area of saurashtra as well as create better
quality in education is time-going process.
(2.3) Awareness of the opportunities and potential AFFORTS are in
rural areas is difficult, not impossible.
(3) Review of Literature:
“Education is the great Instrument of social emancipation by which a democracy establishes, maintains and protects the spirit of equality among its members” these are the views of Radhakrishan commission (1948-49).
All great people & educationists like Mahatma Gandhi, Kramer Bhaurao Patil, Mahatma Phyla, Shaun Chhatrapati, Kolhapur, G.K. Gokhale, Vinoba Bhave etc. have said that education is the medicine to all the ills of Indian rural society. Bhaurao’s educational experiments were meant to solve the difficulties confronting the rural society. He said, a man is gifted with Native Intelligence & with or without moderate formal education can also give a coherent, if not, a systematic philosophy of his own life. Advocate Bartakke found that after Industrial revolution young people started leaving the villages for cities in spite of the danger of unemployment. He noted that slogan ‘Back to villages’ should be changed to ‘stay in villages’. He suggested that, for village industries & villages to be self –dependent, he advised the village traders to form co-operative societies and learn modern techniques of trading. He expected that education should teach them better life, better farming, better seeds, better marketing and no thirst for city life. But the education was to the contrary at that time. In today’s global era too these philosophy hold true. Regional Institute has to play a pivotal role to develop the region by providing appropriate knowledge to the students so that they can stay in villages and apply all their managerial skills for the and others better life, better trading & better marketing.
Mahatma Gandhi was also of the same opinion, that education should be self-supporting. Education means an all - round drawing out of the best in human- body, mind & spirit. The highest development of the mind and the soul is possible under a system of education. ‘Making revolutionary changes in education system and giving practical knowledge/ life skills and through educating them’ this was the principle of Mahatma Gandhi. He was of the opinion that, college education should be related to the National necessities. Education for life: Without the use of our hands & feet, our brains would be atrophied and even if it worked it would be the home of Satan. Tolstoy was of the same opinion. The youth/student have to be the true representatives of our culture & civilization, they are the true genius of our nation and this education should be based on non- violence & without exploitation of the student. True learning can be imparted only through doing. Gandhiji’s idea was not only to teach a profession or occupation but to develop the full man through teaching that occupation. In this way, we see it is very essential and can be possible to develop the rural areas through the students by teaching them the culture, industrial scenario of that region as well the global opportunities and threats so that they can apply their managerial skills to make the rural/ regional industry competent.
(4) Methodology
The educational Institutes in saurashtra region are the main source of information for research. Directors, teachers and students are the source of primary data, whereas office record is the source of information regarding socioeconomic background and placement information.Other sources are people working in NGOs, local govt., agriculture and agro-based industries and service sectorThe methodology is in line with the international trend—a combination of self-evaluations and peer review based on predetermined criteria for assessment. It is a voluntary process, and the final outcome of the process is an overall grade on a five-point scale and a detailed assessment report, valid for a period of five years. Both the grade and the report are made public.Although the NAAC has the provision to do both-------------------------------INSTITUTIONAL as well as ‘DEPARTMENTAL ASSESSMENT
During the first cycle, institutional accreditation has been promoted consciously. By the end of 2001, the NAAC has assessed around 200 institutions of higher education, and it recently conducted a study to analyze the impact of accreditation on the institutions of higher education.
( 5) Findings
5.1- education needs in rural India.
The growth of private initiatives has also increased the concern for quality. To increase access to education, India has encouraged private initiatives. The government-run colleges are few, and privately managed trusts or societies have founded the greater number of colleges—about 70 percent of the total. Most of the private colleges established before the 1980s get more than 95 percent of their financial support from the state government,
5.2 Problems of rural areas-----
5.2.1- Quality of students & socio-economic background:
State Govt. has adopted 70+15+15 pattern for admission 70% from local university, 15% from other universities in the state and 15% students from out of the state.Since out of state students and other university students are interested in ‘A’ or ‘B’ type Institutes, the profile of students in ‘C’ type, rural institutes remains by and large rural. Due to less exposure, conventional teaching methodology till undergraduate level, the quality of students is much different from the students in metros. These institutes need to make intensive efforts to bring these students to the minimum level which makes them eligible for management education i.e. language, minimum communication skills and orientation for active learning expected in management education.
5.2.2 performance in admission entrance test,
If we look at their performance in admission entrance test, we find following composition:
15% of the candidates are within the range of 55-75 out of 200 marks
65% of the candidates are within the range of 75-100 ,
15% of the candidates are within the range of 100-125,
05% of the candidates are above 125
Students from Semi urban and Rural India are by and large introvert, shy and passive. This may be attributed to the social characteristics of the region. Though many of them are from non- agrarian family background. They have less exposure to the industrial environment where the above qualities are undesirable. The transition of agrarian society to industrial society is still in the process.
Colleges of rural areas have to fight with the preconceived ideas of the students emerged out of their inferiority complex and no close interface with corporate environment. Few guest lectures, industrial visits and library work, debates take them to a limited extent to come out of inferiority complex. The insistence of AICTE on one or two common admission tests will deprive majority of rural students from education.
5.2.3 The Impact of NACC—
The impact could also be seen in ways that were not very pleasant. In spite of emphasizing that—
· Institutional uniqueness will be taken care of; institutions have started copying the top-bracket institutions, which may lead to a decrease in diversity among institutions.
· Some institutions had spent much time preparing documents and plans that would impress the peer team.
· In some instances the assessment report seems to be used for purposes that may not be appropriate to the intended outcomes.
· In addition to the unintended consequences, as time passes, the NAAC faces new challenges.
· Some are methodological issues and the rest relate to implementation of policies.
· The follow-up strategy to be adopted and the safeguards to uphold the objectivity of accreditation are emerging as challenges to be addressed immediately.
(6) SUGGESTIONS—
§ To face the next cycle of assessment.
§ To handle assessment if it is made mandatory
§ To establish regional offices have also come up
§ To export of education,by other countries.
§ To allow the e-learning and the Open University
In this context---
The need to strengthen the region and international dialogue with the other quality assurance agencies
The need to strengthen the research on quality related issues have become vital area
The need to clear the advisory role of NAAC’s on policymaking
In a developing country like India, which has a long way to go in increasing access to higher education, linking assessment with basic funding may not be appropriate. But
Ö the expectations of stakeholders on incentives
Ö“development grants”
Ö State universities and colleges receive UGC support (less than 5 percent of their budget in most cases) only for certain development schemes. Their major providers—the state-governments have yet to take note of the assessment outcome of the NAAC in a major way.
The way the NAAC would proceed to face these challenges is bound to enrich the international development of quality assurance.The challenge is to combine government funding with privatization, to build the resources required to accomplish both options, and optimize the country’s gains from globalization
(7) Recommendations
Following measures can be taken to strengthen the rural institutions.
7.1 AICTE should pay attention to the problems of rural areas by appointing advisory committee consisting of experts form rural region. This committee will take into consideration the management education needs in the rural region and set norms for rural B-schools. It can also consider delegation of controlling authorities to the universities in the region. Universities can understand the regional educational needs better.
7.2 There is a need for integration of government initiative for rural development and role of rural institutions. Some schemes can be routed through these areas,
7.3 MOUs between premier and rural institutions can be made benefited
A. Enhancement of quality of rural colleges through designing –
B. MDPs for neglected sectors
C. Conducting research for rural development.
D. Faculty development and curriculum development
· SUMMARY---.
MNCs and large corporation can look into the opportunities and poten rural region and extent their outreach activities taking rural colleges with them this will strengthen them financially at the same time As rightly mentioned by C.K.Prahalad in his best seller, ‘THE FORTUNE AT THE BOTTOM OF THE PYRAMID’, that it is not possible for MNCs to frame strategy for serving market that lies below the pyramid by sitting at the headquarters. In order to understand the characteristics of these markets they need to have strategic alliance with NGOs, universities and educational institutions. This thought expressed in the RESEARCH-PAPER supports the stand that rural education institutions can play a pivotal role in representing the fortune that lies below the PYRAMID. #######################################################################
References:
1 Mahatma of Mohanda Karamchand Gandhi, Vol. V,VI,VII
2 C.K.Pralahad The Fortune at the Bottom of the Pyramid
3. S.K. Mishra & V.K. Mishra Economic Environment of Business
4. Hayward, CA Quality Management in education- Mytron Tribus, Exergy, Inc.,
5. Ravindra Kumar & Kalpana Vedmitra, Improving Quality of Higher
Education: Autonomy to Colleges, What Next? University News, 42 (18),
May 03-09, 2004
6. lekar, University News, (43), 11 March14-20, 2005
www.indiabschools.com/bschools.com/bschooldirec
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Friday, January 15, 2010
RURAL GUJARAT
Development is biased in favour of areas having proximity to the urban corridors, which also attract the largest magnitude of investment flows. The remote hilly areas in the east and to the south have witnessed little growth of per capita income or employment matching the growing workforce. Regional imbalances are glaring and growing. The development gains have trickled down unevenly among rural and urban areas, developed and backward pockets and among scheduled and non scheduled sections of population. Some aspects of the phenomena of social retrogression are quite visible as can be seen from the discrepancies in some key demographic variables. Education and health care facilities face problems of delivery and access The selective path of development being followed is bound to pose major impediments for the overall growth of the economy, so far as distributive justice is concerned. Under these circumstances, the optimal use of resources for realizing full potential of the economy requires a careful analysis of the economic structure in the long run perspective. The present paper highlights the need to usher in a development process that is equitable, sustainable, participative, stable and efficient- in divergence to the selective growth paradigm that has become the hallmark of the state’s development so far Other forms of inequalities are manifest in the state. The development path followed by the state so far has led to reversal of the equalization process. The coefficient of variation in the incidence of rural poverty in 1993-94 between the geographical sub regions of Gujarat was 0.225; for urban poverty it was 0.157. The coefficient rose in 1999-00 to 0.258 (rural) and 0.245 (urban)
WOMEN” IN AGRICULTURE IN 21st CETURY
Scientific breakthroughs and technological innovations in the 20th century fueled substantial gains in agricultural productivity in many developed and developing countries. In each country, the successful local development of technologies or the transfer and adaptation of innovations from other countries will depend on incentives and barriers faced by investors and producers. Countries with strong research, health, and education capacity will offer a supportive environment for technology investment science and technology can play a critical role in helping to prevent famine, improve nutrition, and move countries closer toward a goal of ending world hunger. Education is important at all levels to support the development and transfer of science and technology.in research, there is a need for trained individuals to develop and implement regulations that affect technology use. Qualified people are also needed to represent their country’s interests in international negotiations. Decision-makers need the expertise to understand the positive and negative implications of their actions within the complex human and ecological environment
In extension activities the women is now the centre point and activities are being planned keeping her in view. Her enlightenment will change the face of rural India. Several programmes started at the National Centre for Women in Agriculture and Krishi Vigyan Kendras, are the right steps in this direction. This paper consider some important study and project and focus them perfectly.
Self help groups were made and took up income generating steps in home made products, dairy products, bakery products, tailoring/embroidery, goat/buffalo rearing and vermicomposting Innovative marketing outlets developed for Self help groups. Five components of AICRP on Home Science moved towards empowerment of rural women. There main achievements were Mobilization of self help groups and creation of learning environment Strengthening empowerment process Empowerment gains for women were assessed Cafeteria for women in agriculture was developed and offered to states to guide the development of new programmes for women in agriculture DARE/ICAR ANNUAL REPORT 2003–2004 174 harvest activities and livestock management were assessed. Under the project Identification and evaluation of interactive learning modules for dissemination of homestead technologies ergonomic assessment was carried out on the traditional and improved method of paddy parboiling procedures. During paddy parboiling using improved technology (paddy par boiling unit) the heart beat rate and energy expenditure were significantly reduced and the out put also increased from 35 kg per batch to 75kg per batch. The time duration of carrying out this activity also reduced from 2 days to 6 hours. Considering the significant utility of paddy parboiling unit, an interactive learning module is being developed on paddy parboiling unit, which will be useful for trainers in disseminating the technology. The project on Improvement in storage practices of seeds and grains of important crops with women perspective highlighted that begunia leaf (Vitex negundo) treatment of mung seeds is effective.
The research project of the National Research Centre for Women in Agriculture (NRCWA)
The conducted project has been functioning at Bhubaneshwar, Orissa, for developing methodologies, for identification of gender implications in farming systems approach and to develop women specific technologies under different production systems. There are 16 ongoing research projects in the areas of gender study on agriculture and household economy, management of coastal agro-eco system, extension methods for farm women, standardization of women specific field practices, occupational health hazards, reducing drudgery of women in agricultural operations, improvement of farming system suited to farm women, eco-friendly pest management technologies for vegetables among farm women, evaluation of interactive learning modules, technological needs in empowering women in rural aquaculture, and improvement in storage practices of seeds and grains. Under project on Development and testing of extension methods for farmwomen in eastern India, the extent of participation of farm women in different farming systems and farm enterprises and the role of change agents in that context, were studied. Contrary to the situation at coastal tract the male extension agents maintained higher contacts with farmwomen than the lady extension agent. The studies under Identification and improvement of farming systems suited to farmwomen in Eastern India project revealed that there is intense involvement of farmwomen in vegetable cultivation necessitating to take follow up supportive activities and interventions in the area of vermin composting, natural plant pesticides, biological control and IPM. Under the project Standardization of women specific field practices in rice in Orissa data were collected from women heads of 50 farm families on participation of women in relation to varying operations in rice cultivation. Women of family contributed highest hours per season (61.66) in harvesting and post harvesting operations and participated lowest in land preparation. Same pattern was observed from the paid women and total women (family + paid labor). Under project on Occupational health hazards of farm women in coastal Orissa the health hazards faced by women in household activities, farm activities, post Women in Agriculture The women is the backbone of agricultural workforce but worldwide her hard work has mostly been unpaid. She does the most tedious and back-breaking tasks in agriculture, animal husbandry and homes. The research efforts at the ICAR institutes have been tried to relieve her of the drudgery by providing time and labor saving tools. Vocational trainings are also being conducted, to impart skills to undertake different avocations. In extension activities the women is now the centre point and activities are being planned keeping her in view. Her enlightenment will change the face of rural India. Several programmes started at the National Centre for Women in Agriculture and Krishi Vigyan Kendras, are the right steps in this direction.
In extension activities the women is now the centre point and activities are being planned keeping her in view. Her enlightenment will change the face of rural India. Several programmes started at the National Centre for Women in Agriculture and Krishi Vigyan Kendras, are the right steps in this direction. This paper consider some important study and project and focus them perfectly.
Self help groups were made and took up income generating steps in home made products, dairy products, bakery products, tailoring/embroidery, goat/buffalo rearing and vermicomposting Innovative marketing outlets developed for Self help groups. Five components of AICRP on Home Science moved towards empowerment of rural women. There main achievements were Mobilization of self help groups and creation of learning environment Strengthening empowerment process Empowerment gains for women were assessed Cafeteria for women in agriculture was developed and offered to states to guide the development of new programmes for women in agriculture DARE/ICAR ANNUAL REPORT 2003–2004 174 harvest activities and livestock management were assessed. Under the project Identification and evaluation of interactive learning modules for dissemination of homestead technologies ergonomic assessment was carried out on the traditional and improved method of paddy parboiling procedures. During paddy parboiling using improved technology (paddy par boiling unit) the heart beat rate and energy expenditure were significantly reduced and the out put also increased from 35 kg per batch to 75kg per batch. The time duration of carrying out this activity also reduced from 2 days to 6 hours. Considering the significant utility of paddy parboiling unit, an interactive learning module is being developed on paddy parboiling unit, which will be useful for trainers in disseminating the technology. The project on Improvement in storage practices of seeds and grains of important crops with women perspective highlighted that begunia leaf (Vitex negundo) treatment of mung seeds is effective.
The research project of the National Research Centre for Women in Agriculture (NRCWA)
The conducted project has been functioning at Bhubaneshwar, Orissa, for developing methodologies, for identification of gender implications in farming systems approach and to develop women specific technologies under different production systems. There are 16 ongoing research projects in the areas of gender study on agriculture and household economy, management of coastal agro-eco system, extension methods for farm women, standardization of women specific field practices, occupational health hazards, reducing drudgery of women in agricultural operations, improvement of farming system suited to farm women, eco-friendly pest management technologies for vegetables among farm women, evaluation of interactive learning modules, technological needs in empowering women in rural aquaculture, and improvement in storage practices of seeds and grains. Under project on Development and testing of extension methods for farmwomen in eastern India, the extent of participation of farm women in different farming systems and farm enterprises and the role of change agents in that context, were studied. Contrary to the situation at coastal tract the male extension agents maintained higher contacts with farmwomen than the lady extension agent. The studies under Identification and improvement of farming systems suited to farmwomen in Eastern India project revealed that there is intense involvement of farmwomen in vegetable cultivation necessitating to take follow up supportive activities and interventions in the area of vermin composting, natural plant pesticides, biological control and IPM. Under the project Standardization of women specific field practices in rice in Orissa data were collected from women heads of 50 farm families on participation of women in relation to varying operations in rice cultivation. Women of family contributed highest hours per season (61.66) in harvesting and post harvesting operations and participated lowest in land preparation. Same pattern was observed from the paid women and total women (family + paid labor). Under project on Occupational health hazards of farm women in coastal Orissa the health hazards faced by women in household activities, farm activities, post Women in Agriculture The women is the backbone of agricultural workforce but worldwide her hard work has mostly been unpaid. She does the most tedious and back-breaking tasks in agriculture, animal husbandry and homes. The research efforts at the ICAR institutes have been tried to relieve her of the drudgery by providing time and labor saving tools. Vocational trainings are also being conducted, to impart skills to undertake different avocations. In extension activities the women is now the centre point and activities are being planned keeping her in view. Her enlightenment will change the face of rural India. Several programmes started at the National Centre for Women in Agriculture and Krishi Vigyan Kendras, are the right steps in this direction.
ECONOMIC SECURITY AND HUMAN DEVELOPMENT
Since 1990, the Human Development Index has revolutionized discussions about human development. However, it suffers from two deficiencies, which can now be mitigated: geographic incompleteness and insufficiently “on-target” representation of economy, knowledge, and “a long and healthy life” at the level of the individual. This report summarizes attempts to rectify those deficiencies. In addition, steady advances in attempts to characterize different aspects of the human condition have resulted in indicators, covering varying numbers of countries, on a wide variety of subjects. If one were challenged to create an index on the condition of people-centric Human Security, such as the authors of the Human Development Index faced in 1990 and expanded qualitatively in 1994, one could now begin to do so – at least for the sake of discussion and resultant improvements. A prototype Human Security Index is presented and initially assessed here. This paper extends a paper (Hastings, 2008A) with additional data, and is designed to complement the Hastings (2008B) on geographically extending the Human Development Index. Initial findings are consistent with those of some sustainability and governance indicators – that stereotypical material development needs to be harmonized by good governance aimed at peacefulness, fair circumstances to all people, long-term environmental sustainability. The data show that most countries are characterized (in the draft indices) by one or more relative strengths, and also one or more weaknesses, which might help them to focus on areas for improvements. Indeed, no country ranks above .800 (on a 0-1.000 scale asin the Human Development Index) in all components. Another initial result of this work is a form of documentation that GDP-“developed” economies are not necessarily highly developed highly developed societies, in terms of equitability, social fabric, or human security. These societal characteristics are arguably more important to contentment-happiness-satisfaction than raw GDP per capita. Where the Human Development Reports of United Nations Development Programme pushed the envelope significantly from GDP per capita to include health and education, the equitability and social fabric documentation now beginning can push the envelope even farther So the question arises. to characterize human security and societal development, and perhaps rectify challenges faced by societies in such dimensions of life
Is security a feeling or a verifiable condition that is independent of emotion? Actually, it is both — a dichotomy contained in the very definition of the word. My dictionary lists “freedom from danger” as a definition of security, but it also lists “freedom from fear or anxiety.” In the end, security involves achieving the former as a means of enabling the latter. Attempts to define economic security differ from similar efforts in other security sectors. The meaning of economic security and securitization is becoming especially complex in finance. Different meaning of the term economic security theory is given in the different way.
ECONOMIC SECURITY & GLOBALIZATION
The recent vicissitudes of societies in an increasingly integrated global economy have spurred renewed interest in economic security and forced its redefinition. This revised definition in turn has encouraged a search for policy prescriptions that will increase economic security in the new environment. Globalization, after undermining the old definition of economic security, is found at the center of a new definition that emphasizes the risks of unexpected shocks and economic volatility. The new definition must capture the causal consequences of globalization accurately and establish explicit benchmarks for assessing globalization’s effects on economic security. The design of national, regional, and global institutions can then be evaluated in light of three available instruments for enhancing economic security: insurance, credibility, and adaptation. Economic security is not a new concern of governments. Economic instruments have long been part of the toolkit of statecraft, a means to influence other states and their policies (Hirschman, 1980; Baldwin, 1985). Economic security in this traditional view was security from manipulation by other governments that wielded these instruments. Insecurity was vulnerability to other states. Economic interdependence was viewed with wariness, particularly among developing countries, because it risked an increase in such vulnerability. Industrialized countries gradually overcame their anxieties over economic vulnerability after 1945
Economic security has preoccupied national governments, in Asia and elsewhere, when economic shocks have been so unexpected and severe that existing social and political arrangements appear threatened. Contemporary globalization – economic integration at the global level that is no longer limited to the industrialized countries – accelerated during the 1980s, as programs of economic liberalization spread throughout the developing world. A sharp increase in capital flows to developing countries in the early 1990s reinforced positive views of globalization. That sunny perspective did not last the decade, however, as successive financial crises affected administration that appeared little interested in collaboration to mitigate the effects of globalization on smaller, more open economies.
Of course, economic security is in many ways related to other aspects of human
security, particularly food security and political security. A steady income allows people to acquire the food they need to survive. Rising food prices require people to allocate a greater share of their income for food supply. And political insecurity may interfere with economic activity in general, making it harder for people to earn their living. In order to allow for a focused discussion, this panel shall not deal with questions of food security and political security, which are being discussed at a different venue. Economic security can either be achieved through income from work, or by a publicly financed social safety net. The UN definition makes a hierarchical distinction between the
two potential sources of income, with a clear preference for productive and remunerative work. Consequently, in the 1994 report by the UNDP, concerns about unemployment are seen as the most pressing ones. The international community has, for a long time, been involved in a discussion on how to stimulate economic growth, and thus the supply of jobs in developing countries. A major part of Official Development Assistance (ODA) is directed towards enhancing the economic functioning of developing countries. A different question, which is discussed less often, is the provision of a social safety net: while almost all developed countries feature some kind of a social welfare state, people in developing countries are often at the mercy of threats to economic security.
ECONOMIC SECURITY AND HUMAN DEVELOPMENT.
“Economic security requires an assured basic income – usually
from productive and remunerative work, or in the last resor from some publicly financed safety net.” (UNDP 1994, p. 25) This was the definition of economic security as provided by the UN in their 1994 Report on Human Development. Economic security can either be achieved through income from work, or by a publicly financed social safety net. The UN definition makes a hierarchical distinction between the two potential sources of income, with a clear preference for productive and remunerative work. Consequently, in the 1994 report by the UNDP, concerns about unemployment are seen as the most pressing ones. The international community has, for a long time, been involved in a discussion on how to stimulate economic growth, and thus the supply of jobs in developing countries.
The provision of economic security-- The international community-
One fundamental question in the field of human security is “who should provide it?” The1994 UNDP report is very unclear about this. It states that individuals have the main burden of mastering their lives. At the same time, the report calls for solidarity and cooperation in order to achieve the goals it sets. How should the burden be shared among the different actors? As stated, the creation of social insurance in the developed world was essentially a national process. Should the international community thus stand on the sidelines while developing countries develop their social welfare systems?
In fact, the international community is already strongly engaged in the provision of economic security. The Millennium Development Goal No. 1 calls for the eradication of extreme poverty and hunger by 2015. In particular, the number of people living on less than 1US$ per day should be halved. However, most of the activity towards achieving this MDG has been focused towards food security (which is not our focus here) and to improve agricultural exploitation in developing countries. For poor urban populations, which are mostly salarydependent,
not many initiatives have been forthcoming. These parts of the population would
however profit most from social insurance institutions related to unemployment, accident, family policy and others. The potential gains in terms of economic security are significant. Thus, there is a clear need for action from the international community to work towards better social safety nets for the urban proletariat in developing countries.
Problems for the provision of Economic Security in country like INDIA
Developing countries are confronted with big challenges when moving towards the provision of Economic Security nets. The problems are manifold:-----
Developing countries national budgets are often strongly overstretched. Tax
collection is weak. Other issues, such as conflict relief and warfare, often take up a
larger share of the national budget. No money is left for government-provided social
insurance. However, donor governments sometimes provide budgetary help to
assistance-receiving countries, which could be earmarked towards the construction
of a social safety net.
In developing countries economies like India, the informal sector is often bigger than the formal one. Individuals employed in the informal part of the economy enjoy even less protection in terms of social insurance than their counterparts in the formal sector. These jobs thus need to be brought into the formal sector, in order to give them appropriate social security. On the other hand, the wage-related costs of social insurance are often cited as one of the reasons why the informal sector is so large in
the first place. Can this vicious circle somehow be broken?
Globalization has sometimes been described as a ‘race to the bottom’. Open borders and the mobility of capital have forced countries to lower their social and
environmental standards in order to attract investment and maintain their productive sector. Therefore, countries cannot impose costly social insurance schemes on their economy, since the companies would leave for a ‘cheaper’ place to establish themselves. But is there really a ‘race to the bottom’, and does it really impede the provision of economic security?
What is the role of private actors? Historically, in the developed countries, trade unions and religious groups have played a crucial role in the establishment of economical policy. Can such groups play a similar role in developing countries? If so, which stance should the international community take towards these actors?
Institutions and the provision of economic security under conditions of globalization Globalization has produced new definitions of economic security centered on two types of unwanted transmissions across national borders: illicit flows that are more difficult to control and easier to disguise as legitimate economic transactions increase (terrorism, crime, pollution); and economic (largely financial) shocks that can undermine economic growth, increase inequality, and threaten political stability. Countering the first type of transmission involves identification, monitoring, and control at the national level, coupled with collaboration at the regional and global levels. Illicit flows often embody security threats independent of their effects on economic security. Economic security is reduced when countermeasures taken against these threats impose costs on legitimate economic exchange and reduce the levels of legitimate trade and investment. More difficult to calculate and manage are the costs and risks associated with fluctuations in usually benign cross-border flows of goods, capital, and labor. It is this second dimension of economic insecurity that has drawn the most attention from policymakers. Institutions can offset the economic insecurity associated with globalization in three ways: providing insurance, adding to policy credibility, and encouraging adaptation. In the past, Asian governments managed their links to the international economy through institutions with high credibility: adopting a strategy Economic security redefined: the (perceived) perils of globalization If globalization contributed to the erosion of an older definition of economic security, it also fostered a redefined concern over economic threats to national wellbeing. Recurrent financial crises during the 1990s struck emerging markets in Asia and elsewhere with particular force, to the surprise of both national elites and many financial market observers. These powerful shocks reinforced a more pessimistic view of a globalized world: economic openness might produce more economic insecurity. Renewed attention to the negative effects of globalization was reinforced by additional economic shocks that flowed from the terrorist attacks of 11 September 2001 and the Severe Acute Respiratory Syndrome (SARS) epidemic of 2003. The new century had dawned, it seemed, on an international landscape of diminished economic opportunity and heightened threat. This swing from exaggerated optimism over the benefits of globalization to a more pessimistic assessment of insecurity in a globalized world was to be expected. Renewed economic insecurity, however, was not centered primarily on the threat of economic manipulation by rival states, as older anxieties had been. Instead, the new assessment linked globalization to economic security in two ways. Both emphasize the importance of nonstate actors and the new economic environment that they have created and exploited. Rather than concentrating solely
on the vulnerability of states, both stress the vulnerability of individuals, groups, and societies as well as the internal political consequences of that vulnerability.Rather than external manipulation by other states, the undermining of state authority by nonstate networks and economic shocks is central
.THE INDIAN ECONOMIC SECURITY-
The Indian economy is steadily growing at an incredible pace with no major domestic or external imbalances apparent. But is it secure? The answer is not obvious, since economic security is a complex dynamic concept. In today’s globalised world, it is best defined by the state’s ability to meet, on a sustained basis, the material aspirations of its citizens. This depends to a considerable extent on the state’s institutional capacity to cushion its people from domestic and global threats.
Seen thus, the country’s economic security is related to every aspect of production, distribution and consumption of goods and services. Thus, the agenda for economic security includes almost every aspect of government and business policy. But in order to determine how secure the Indian economy is, I have narrowed the definition, in a paper I am preparing for the new CII Council on Economic Security, to three concepts: resources security, institutional security and strategic security.
Resources Security: this encompasses two broad areas of natural resource security that includes efficient and sustainable access to water, energy and other natural resources; and human resource security that requires a workforce with adequate skills to ensure global competitiveness. India does not measure up too well on these counts. In spite of a large endowment of arable land, it has low agricultural productivity—and it grew at a mere 7% annually over 1995 to 2004—in comparison with other large emerging economies. The underlying reasons are poor rural infrastructure, neglect of the food-processing sector and policy inadequacies in the organised retail sector that make it difficult to optimise supply chains for agriculture products. India has the lowest renewable water resources among major global economies. Industrial and urban demand for water is fortunately low by international norms, but demand might increase hugely, “crowding out” water for agriculture. Separately, India needs to prepare a plan for sustainable energy security, given its heavy dependence on imported oil & gas. India also loses about a quarter of the electricity it generates to transmission and distribution losses. Like China, India is well placed in terms of human resource endowment. India can compete with other developing countries in labour intensive sectors and with OECD economies in knowledge intensive sectors. But larger social investment is essential to sustain this edge. About 340 million Indians below 15 years of age will require education, health and nutrition. But India is clearly lagging behind the rest of the world in human. The basic concept of economic security is not new in India. Traditionally, a sort of moral economy existed to provide security to older destitute and other vulnerable groups in society. However, gradually, traditional support systems are disappearing, and state-based economic security systems have come into existence. Under standardized economic security policies, government is covering retirement benefits for those in the organized sector; economic security benefits for those in the unorganized sector; and old-age pension for rural elderly. These are contributory as well as non-contributory programs. Besides life insurance approaches, savings-linked insurance and Annapurna (food security) are other important programs. However, in terms of coverage, program quality and effectiveness have been largely criticized by social security experts, suggesting immediate reforms to old-age programs.
Economic Development: Review of last year’s presentation
•Growth trajectory lifted to 6% during1980s & 1990s from 3% over 1960s &1970s
•TFP & labour productivity in the 1990s higher than the average of the 1980s, but agriculture lagged in the 1990s and inter-state inequalities worsened
Economic Developments under Manmohan Singh Govt.
•Indian economy has moved to a higher growth trajectory? : 8%+ growth
•Saving & investment ratio has hit an all time high of 30%+
•Foreign investment (FDI+ FII) =US$18bn p.a.; strengthened IPR protection will raise FDI
•Profit growth has been around 30% p.a.
•Remittances exceeding US$20bn. p.a.
•Stock market index has more than doubled
•Completion of infrastructure projects more rapid
•Turnaround in Indian Railways
ECONOMIC GROWTH AND HUMAN DEVELOPMENT
The HD-GNP cycle.proportion of GNP spent by the various levels across countries in each of these ratios, which of government; the HD-allocation ratio, means that the same level of GNP may be denned as the proportion of total government associated with very deferent levels of government spending on HD priorities. 18 expenditure going to the HD-sectors; and, ,the HD priority ratio, denned as the The underlying determinants of these three proportion of total HD-sector expenditure ratios are complex, but include the following:
© going to ``priority areas.'' Within the HD-sec-the tax capacity of the system;
© the strength torso, some expenditures are clearly much more of the demand for military expenditure and for productive in terms of achieving advances inother non-HD priorities of the government;
©HD than others; for example, basic education, the varying interplay between bureaucratic especially at an early stage of development, is forces, vested interests and popular pressures. It generally recognized to have a larger impact on should be noted that all three ratios are ejected especially at an early stage of development, is forces, vested interests and popular pressures. It generally recognized to have a larger impact onShould be noted that all three ratios are ejected
Is security a feeling or a verifiable condition that is independent of emotion? Actually, it is both — a dichotomy contained in the very definition of the word. My dictionary lists “freedom from danger” as a definition of security, but it also lists “freedom from fear or anxiety.” In the end, security involves achieving the former as a means of enabling the latter. Attempts to define economic security differ from similar efforts in other security sectors. The meaning of economic security and securitization is becoming especially complex in finance. Different meaning of the term economic security theory is given in the different way.
ECONOMIC SECURITY & GLOBALIZATION
The recent vicissitudes of societies in an increasingly integrated global economy have spurred renewed interest in economic security and forced its redefinition. This revised definition in turn has encouraged a search for policy prescriptions that will increase economic security in the new environment. Globalization, after undermining the old definition of economic security, is found at the center of a new definition that emphasizes the risks of unexpected shocks and economic volatility. The new definition must capture the causal consequences of globalization accurately and establish explicit benchmarks for assessing globalization’s effects on economic security. The design of national, regional, and global institutions can then be evaluated in light of three available instruments for enhancing economic security: insurance, credibility, and adaptation. Economic security is not a new concern of governments. Economic instruments have long been part of the toolkit of statecraft, a means to influence other states and their policies (Hirschman, 1980; Baldwin, 1985). Economic security in this traditional view was security from manipulation by other governments that wielded these instruments. Insecurity was vulnerability to other states. Economic interdependence was viewed with wariness, particularly among developing countries, because it risked an increase in such vulnerability. Industrialized countries gradually overcame their anxieties over economic vulnerability after 1945
Economic security has preoccupied national governments, in Asia and elsewhere, when economic shocks have been so unexpected and severe that existing social and political arrangements appear threatened. Contemporary globalization – economic integration at the global level that is no longer limited to the industrialized countries – accelerated during the 1980s, as programs of economic liberalization spread throughout the developing world. A sharp increase in capital flows to developing countries in the early 1990s reinforced positive views of globalization. That sunny perspective did not last the decade, however, as successive financial crises affected administration that appeared little interested in collaboration to mitigate the effects of globalization on smaller, more open economies.
Of course, economic security is in many ways related to other aspects of human
security, particularly food security and political security. A steady income allows people to acquire the food they need to survive. Rising food prices require people to allocate a greater share of their income for food supply. And political insecurity may interfere with economic activity in general, making it harder for people to earn their living. In order to allow for a focused discussion, this panel shall not deal with questions of food security and political security, which are being discussed at a different venue. Economic security can either be achieved through income from work, or by a publicly financed social safety net. The UN definition makes a hierarchical distinction between the
two potential sources of income, with a clear preference for productive and remunerative work. Consequently, in the 1994 report by the UNDP, concerns about unemployment are seen as the most pressing ones. The international community has, for a long time, been involved in a discussion on how to stimulate economic growth, and thus the supply of jobs in developing countries. A major part of Official Development Assistance (ODA) is directed towards enhancing the economic functioning of developing countries. A different question, which is discussed less often, is the provision of a social safety net: while almost all developed countries feature some kind of a social welfare state, people in developing countries are often at the mercy of threats to economic security.
ECONOMIC SECURITY AND HUMAN DEVELOPMENT.
“Economic security requires an assured basic income – usually
from productive and remunerative work, or in the last resor from some publicly financed safety net.” (UNDP 1994, p. 25) This was the definition of economic security as provided by the UN in their 1994 Report on Human Development. Economic security can either be achieved through income from work, or by a publicly financed social safety net. The UN definition makes a hierarchical distinction between the two potential sources of income, with a clear preference for productive and remunerative work. Consequently, in the 1994 report by the UNDP, concerns about unemployment are seen as the most pressing ones. The international community has, for a long time, been involved in a discussion on how to stimulate economic growth, and thus the supply of jobs in developing countries.
The provision of economic security-- The international community-
One fundamental question in the field of human security is “who should provide it?” The1994 UNDP report is very unclear about this. It states that individuals have the main burden of mastering their lives. At the same time, the report calls for solidarity and cooperation in order to achieve the goals it sets. How should the burden be shared among the different actors? As stated, the creation of social insurance in the developed world was essentially a national process. Should the international community thus stand on the sidelines while developing countries develop their social welfare systems?
In fact, the international community is already strongly engaged in the provision of economic security. The Millennium Development Goal No. 1 calls for the eradication of extreme poverty and hunger by 2015. In particular, the number of people living on less than 1US$ per day should be halved. However, most of the activity towards achieving this MDG has been focused towards food security (which is not our focus here) and to improve agricultural exploitation in developing countries. For poor urban populations, which are mostly salarydependent,
not many initiatives have been forthcoming. These parts of the population would
however profit most from social insurance institutions related to unemployment, accident, family policy and others. The potential gains in terms of economic security are significant. Thus, there is a clear need for action from the international community to work towards better social safety nets for the urban proletariat in developing countries.
Problems for the provision of Economic Security in country like INDIA
Developing countries are confronted with big challenges when moving towards the provision of Economic Security nets. The problems are manifold:-----
Developing countries national budgets are often strongly overstretched. Tax
collection is weak. Other issues, such as conflict relief and warfare, often take up a
larger share of the national budget. No money is left for government-provided social
insurance. However, donor governments sometimes provide budgetary help to
assistance-receiving countries, which could be earmarked towards the construction
of a social safety net.
In developing countries economies like India, the informal sector is often bigger than the formal one. Individuals employed in the informal part of the economy enjoy even less protection in terms of social insurance than their counterparts in the formal sector. These jobs thus need to be brought into the formal sector, in order to give them appropriate social security. On the other hand, the wage-related costs of social insurance are often cited as one of the reasons why the informal sector is so large in
the first place. Can this vicious circle somehow be broken?
Globalization has sometimes been described as a ‘race to the bottom’. Open borders and the mobility of capital have forced countries to lower their social and
environmental standards in order to attract investment and maintain their productive sector. Therefore, countries cannot impose costly social insurance schemes on their economy, since the companies would leave for a ‘cheaper’ place to establish themselves. But is there really a ‘race to the bottom’, and does it really impede the provision of economic security?
What is the role of private actors? Historically, in the developed countries, trade unions and religious groups have played a crucial role in the establishment of economical policy. Can such groups play a similar role in developing countries? If so, which stance should the international community take towards these actors?
Institutions and the provision of economic security under conditions of globalization Globalization has produced new definitions of economic security centered on two types of unwanted transmissions across national borders: illicit flows that are more difficult to control and easier to disguise as legitimate economic transactions increase (terrorism, crime, pollution); and economic (largely financial) shocks that can undermine economic growth, increase inequality, and threaten political stability. Countering the first type of transmission involves identification, monitoring, and control at the national level, coupled with collaboration at the regional and global levels. Illicit flows often embody security threats independent of their effects on economic security. Economic security is reduced when countermeasures taken against these threats impose costs on legitimate economic exchange and reduce the levels of legitimate trade and investment. More difficult to calculate and manage are the costs and risks associated with fluctuations in usually benign cross-border flows of goods, capital, and labor. It is this second dimension of economic insecurity that has drawn the most attention from policymakers. Institutions can offset the economic insecurity associated with globalization in three ways: providing insurance, adding to policy credibility, and encouraging adaptation. In the past, Asian governments managed their links to the international economy through institutions with high credibility: adopting a strategy Economic security redefined: the (perceived) perils of globalization If globalization contributed to the erosion of an older definition of economic security, it also fostered a redefined concern over economic threats to national wellbeing. Recurrent financial crises during the 1990s struck emerging markets in Asia and elsewhere with particular force, to the surprise of both national elites and many financial market observers. These powerful shocks reinforced a more pessimistic view of a globalized world: economic openness might produce more economic insecurity. Renewed attention to the negative effects of globalization was reinforced by additional economic shocks that flowed from the terrorist attacks of 11 September 2001 and the Severe Acute Respiratory Syndrome (SARS) epidemic of 2003. The new century had dawned, it seemed, on an international landscape of diminished economic opportunity and heightened threat. This swing from exaggerated optimism over the benefits of globalization to a more pessimistic assessment of insecurity in a globalized world was to be expected. Renewed economic insecurity, however, was not centered primarily on the threat of economic manipulation by rival states, as older anxieties had been. Instead, the new assessment linked globalization to economic security in two ways. Both emphasize the importance of nonstate actors and the new economic environment that they have created and exploited. Rather than concentrating solely
on the vulnerability of states, both stress the vulnerability of individuals, groups, and societies as well as the internal political consequences of that vulnerability.Rather than external manipulation by other states, the undermining of state authority by nonstate networks and economic shocks is central
.THE INDIAN ECONOMIC SECURITY-
The Indian economy is steadily growing at an incredible pace with no major domestic or external imbalances apparent. But is it secure? The answer is not obvious, since economic security is a complex dynamic concept. In today’s globalised world, it is best defined by the state’s ability to meet, on a sustained basis, the material aspirations of its citizens. This depends to a considerable extent on the state’s institutional capacity to cushion its people from domestic and global threats.
Seen thus, the country’s economic security is related to every aspect of production, distribution and consumption of goods and services. Thus, the agenda for economic security includes almost every aspect of government and business policy. But in order to determine how secure the Indian economy is, I have narrowed the definition, in a paper I am preparing for the new CII Council on Economic Security, to three concepts: resources security, institutional security and strategic security.
Resources Security: this encompasses two broad areas of natural resource security that includes efficient and sustainable access to water, energy and other natural resources; and human resource security that requires a workforce with adequate skills to ensure global competitiveness. India does not measure up too well on these counts. In spite of a large endowment of arable land, it has low agricultural productivity—and it grew at a mere 7% annually over 1995 to 2004—in comparison with other large emerging economies. The underlying reasons are poor rural infrastructure, neglect of the food-processing sector and policy inadequacies in the organised retail sector that make it difficult to optimise supply chains for agriculture products. India has the lowest renewable water resources among major global economies. Industrial and urban demand for water is fortunately low by international norms, but demand might increase hugely, “crowding out” water for agriculture. Separately, India needs to prepare a plan for sustainable energy security, given its heavy dependence on imported oil & gas. India also loses about a quarter of the electricity it generates to transmission and distribution losses. Like China, India is well placed in terms of human resource endowment. India can compete with other developing countries in labour intensive sectors and with OECD economies in knowledge intensive sectors. But larger social investment is essential to sustain this edge. About 340 million Indians below 15 years of age will require education, health and nutrition. But India is clearly lagging behind the rest of the world in human. The basic concept of economic security is not new in India. Traditionally, a sort of moral economy existed to provide security to older destitute and other vulnerable groups in society. However, gradually, traditional support systems are disappearing, and state-based economic security systems have come into existence. Under standardized economic security policies, government is covering retirement benefits for those in the organized sector; economic security benefits for those in the unorganized sector; and old-age pension for rural elderly. These are contributory as well as non-contributory programs. Besides life insurance approaches, savings-linked insurance and Annapurna (food security) are other important programs. However, in terms of coverage, program quality and effectiveness have been largely criticized by social security experts, suggesting immediate reforms to old-age programs.
Economic Development: Review of last year’s presentation
•Growth trajectory lifted to 6% during1980s & 1990s from 3% over 1960s &1970s
•TFP & labour productivity in the 1990s higher than the average of the 1980s, but agriculture lagged in the 1990s and inter-state inequalities worsened
Economic Developments under Manmohan Singh Govt.
•Indian economy has moved to a higher growth trajectory? : 8%+ growth
•Saving & investment ratio has hit an all time high of 30%+
•Foreign investment (FDI+ FII) =US$18bn p.a.; strengthened IPR protection will raise FDI
•Profit growth has been around 30% p.a.
•Remittances exceeding US$20bn. p.a.
•Stock market index has more than doubled
•Completion of infrastructure projects more rapid
•Turnaround in Indian Railways
ECONOMIC GROWTH AND HUMAN DEVELOPMENT
The HD-GNP cycle.proportion of GNP spent by the various levels across countries in each of these ratios, which of government; the HD-allocation ratio, means that the same level of GNP may be denned as the proportion of total government associated with very deferent levels of government spending on HD priorities. 18 expenditure going to the HD-sectors; and, ,the HD priority ratio, denned as the The underlying determinants of these three proportion of total HD-sector expenditure ratios are complex, but include the following:
© going to ``priority areas.'' Within the HD-sec-the tax capacity of the system;
© the strength torso, some expenditures are clearly much more of the demand for military expenditure and for productive in terms of achieving advances inother non-HD priorities of the government;
©HD than others; for example, basic education, the varying interplay between bureaucratic especially at an early stage of development, is forces, vested interests and popular pressures. It generally recognized to have a larger impact on should be noted that all three ratios are ejected especially at an early stage of development, is forces, vested interests and popular pressures. It generally recognized to have a larger impact onShould be noted that all three ratios are ejected
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