Raashid Shah

HUMAN DEVELOPMENT INDEX (HDI) & HUMAN POVERTY INDEX    What is the human development index (HDI)?The HDI—human development index—is a summary composite index that measures a country’s average achievements in three basic aspects of human development: longevity, knowledge, and a decent standard of living. Longevity is measured by life expectancy at birth; knowledge is measured by a combination of the adult literacy rate and the combined primary, secondary, and tertiary gross enrolment ratio; and standard of living by GDP per capita (PPP US$). For details on how to calculate the HDI.What is the gender-related development index (GDI)?The GDI—gender-related development index—is a composite indicator that measures the average achievement of a population in the same dimensions as the HDI while adjusting for gender inequalities in the level of achievement in the three basic aspects of human development. It uses the same variables as the HDI, disaggregated by gender. For details on how to calculate the GDI. What is the gender empowerment measure (GEM)? The GEM— gender empowerment measure—is a composite indicator that captures gender inequality in three key areas:• political participation and decision-making, as measured by women’s and men’s percentage shares of parliamentary seats;• economic participation and decision-making power, as measured by two indicators—women’s and men’s percentage shares of positions as legislators, senior officials and managers and women’s and men’s percentage shares of professional and technical positions; • power over economic resources, as measured by women’s and men’s estimated earned income (PPP US$). How are the GDI and the GEM used? To draw attention to gender issues. The GDI adjusts the HDI for inequalities in the achievement of men and women. A comparison of a country’s ranking on the HDI and its ranking on the GDI can indicate the existence of gender discrepancy. To illustrate that gender empowerment does not depend on income, it is useful to compare relative rankings on the GEM and the relative level of national income. For example,• Poland ranks 25th in the GEM, ahead of Japan, in 44th place, yet income per person in Poland is about one third that of Japan’s (9,450 PPP US$ vs. 25,130 PPP US$ for 2001).• The UK and Finland have very similar income per person (24,160 PPP US$ and 24,430 PPP US$ for 2001) yet in the GEM Finland ranks 5th, the UK 17th. Both indicators can be disaggregated to highlight gender inequality within countries, which can vary widely across regions.What is the human poverty index (HPI-1 and HPI-2)? Poverty has traditionally been measured as a lack of income—but this is far too narrow a definition. Human poverty is a concept that captures the many dimensions of poverty that exist in both poor and rich countries—it is the denial of choices and opportunities for living a life one has reason to value. The HPI-1—human poverty index for developing countries—measures human deprivations in the same three aspects of human development as the HDI (longevity, knowledge and a decent standard of living). HPI-2— human poverty index for selected high-income OECD countries—includes, in addition to the three dimensions in HPI-1, social exclusion. For HPI-1 (developing countries): deprivations in longevity are measured by the probability at birth of not surviving to age 40; deprivations in knowledge are measured by the percentage of adults who are illiterate; deprivations in a decent standard of living are measured by two variables: the percentage of people not having sustainable access to an improved water source and the percentage of children below the age of five who are underweight. For HPI-2 (selected high-income OECD countries): deprivations in longevity are measured by the probability at birth of not surviving to age 60; deprivations in knowledge are measured by the percentage of adults lacking functional literacy skills; deprivations in a decent standard of living are measured by the percentage of people living below the income poverty line, set at 50% of the adjusted median household disposable income; and social exclusion is measured by the rate of long-term (12 months or more) unemployment of the labor force. For details on how to calculate the HPI-1 and HPI-2 How is the HPI used?• To focus attention on the most deprived people and deprivations in basic human capabilities in a country, not on average national achievement. The human poverty indices focus directly on the number of people living in deprivation—presenting a very different picture from average national achievement. It also moves the focus of poverty debates away from concern about income poverty alone.• To highlight the presence of human poverty in both the rich and poor countries. High income per person is no guarantee of a poverty-free country. Even among the richest countries, there is human poverty. The HPI-2 for selected high-income OECD countries (HPI-2) shows that out of 17 European and North American countries, the U.S. has the second highest level of income per person, but also the highest rate of human poverty.• To guide national planning for poverty alleviation. Many National Human Development Reports now break down the HPI by region or other socioeconomic groups to identify the areas or social groups within the country most deprived in terms of human poverty. The results can be dramatic, creating national debate and helping to reshape policies.      

Economic Reforms in India    The Indian Government has introduced many Economic Reforms in India since 1991. In 1990-91 India had to face grave economic problem. India was facing serious deficiency in her foreign trade balance and it was increasing. Since 1987-88 till 1990-91 it was increasing in such a rapid scale that by the end of 1990-91 the amount of this deficit balance became 10,644 crores of rupees.At the same time the foreign exchange stock was also decreasing. In 1990 and 1991 the government of India had to take huge amount of loan from the IMF as compensatory financial facility. Even by mortgaging 46 tons of gold it had taken short term foreign loan from the Bank of England.At the same time, India was also suffering from inflation, the rate of which was 12% by 1991. The reasons of that inflation were the increase in the procurement price of the agricultural products for distribution, the increase in the amount of monetized deficit in the budget, increase of import cost and decrease in the rate of currency exchange and Administered price like. Thus she was facing trade deficit as well as Fiscal Deficit.To get relief from such a grave problem the government of India had only two ways before it1. to take foreign debt and to create favorable conditions within the country for increasing the flow of foreign exchange and also to increase the volume of export.2. The other was to establish fiscal discipline within the country and to make structural adjustment for the purpose.Hence the government of India had to introduce a package of reforms which include-1. to liberalize the industrial policy of the government and to invite foreign investment by privatization of industries and abolishing the license system as a part of that liberalization.2. To make the import-export policy of the country more liberal and so that the export of Indian goods may become more easy and the necessary raw materials and instruments for both industrial development and production of exportable commodities may be imported and also to facilitate free trade by reducing the import duty.3. to decrease the value of money in terms of dollar4. To take huge amount of foreign debt from the IMF and the world Bank for rejuvenating the economic condition of the country and to introduce the structural adjustment in the economic condition of the country as a pre-condition of that debt,5. to reform the banking system and the tax structure of the country and6. to establish market economy by withdrawing and restricting government interference on investment.The main objectives of the new fiscal policy are, however, to establish economic structural adjustment at the first stage and then to establish market economy by removing all controls and restrictions on it. There are two phases in the structural adjustment phase, the stabilization phase where all government expenditures are reduced and the banks are restricted on creating debt. The second phase is the structural adjustment phase where the production of exportable good and the alternative of import goods are increased and at the same time reducing governmental interference in industry, the management skill and productive capacity of the industries are increased through privatization.Thus the new fiscal policy has introduced three significant things Deregulation, Privatization and Exit Policy. Excepting 15 important industries all other industries have been made free from license system. To encourage foreign investment its highest limit has been increased up to 51%. 38 industries have been made open for foreign investment like the Metal industry, Food Processing industry, Hotel and tourism industry etc. Exit Policy has been introduced in the industries which are running at a loss with surplus staff and the sick industries are scheduled to be closed.Thus the new economic policy is taking India towards liberal economy or market economy. It has relieved India much of her hardship that she faced in 1990-91.    

Economic Development in India    An economist and an administrator will took upon these changes as an indication of increasing social welfare. But a layman has his own way of judging the economic development. He is primarily concerned with the betterment of his own lot. A Government exists for individuals; it exists and functions for the good of the common man.The economists simply guide the government to enable it to serve the interest of the common man. But where is the common man today? The answer is clear; the common man, today, is neither materially better off nor mentally, as well as, psychologically happier than what he was under the alien rule in the country.Along with the huge economic development, prices of all consumer-goods are soaring dreadfully and there are many classes of people whose incomes have relatively fallen. Food, the primary necessity of life, is becoming dearer and dearer. The agriculturist seems to benefit there form; but in the long run he, too, must suffer, sharing with his brethren the common miseries of life.Apart from the miseries of common individual, as a nation, too, we are most discontented. As a nation, we are steeped in debt. Of course it is necessary for a growing country to borrow money; the international situation is such that foreign powers willingly lend us money. From, where has money to come for the repayment of all our debt? We are hoping for a greatly increased productivity of our economy. But it must be noted that it is the debt.The common man has to put his hands in his pocket to supply the money for the redemption of the mounting foreign loans. But it is the common man whose interest is neglected today.Our Government is proud of the great industrial plants which have started functioning under the Plans, and more are to be established under the new Plan. For example, we have mighty steel and power plants in various parts of the country. But the failure to move requisite quantities of coal to the plants has been adversely commented upon.Agriculture is the backbone of Indian Economic Development. Regarding agriculture, it is clear fact that there has been much more to do. Of course, with the abolition of zamindari system, peasants have heaved a sigh of relief. But due to inadequate management and slackened control over the ownership of ‘seer’ Land by the ex-zamindars, especially in Uttar Pradesh., Bihar and Madhya Pradesh, the relief which peasants expected, has not been offered to.There is lack of the latest scientific tools for cultivation work. Further, The village dwellers are streaming into urban areas, being attracted by a false notion that the industries would absorb them. But in reality migration tends to intensify the complexity of our unemployment problem.To sum up, the economic situation in the country since the independence has been that the rich have become richer whereas the poor have become poorer. The laborers and common men have not yet been able to spare themselves from their economic wants of life.    

Payment banks   Payments banks is a new model of banks conceptualised by the Reserve Bank of India (RBI). These banks can accept a restricted deposit, which is currently limited to ₹1 lakh per customer and may be increased further. These banks cannot issue loans and credit cards. Both current account and savings accounts can be operated by such banks. Payments banks can issue services like ATM cards, debit cards, net-banking and mobile-banking. Airtel has launched India’s first live payments bank. Paytm is the second such service to be launched in the country. India Post Payments Bank is the third entity to receive payments bank permit after Bharti Airtel and Paytm. Aditya Birla group earned payments bank permit on 3 March 2017. The minimum capital requirement is ₹100 crore. For the first five years, the stake of the promoter should remain at least 40%. Foreign share holding will be allowed in these banks as per the rules for FDI in private banks in India. The voting rights will be regulated by the Banking Regulation Act, 1949. The majority of the bank’s board of directors should consist of independent directors, appointed according to RBI guidelines The bank should be fully networked from the beginning. The bank can accept utility bills. It cannot form subsidiaries to undertake non-banking activities. The banks will be licensed as payments banks under Section 22 of the Banking Regulation Act, 1949, and will be registered as public limited company under the Companies Act, 2013 The “in-principle” license is valid for 18 months within which the entities must fulfil the requirements. They are not allowed to engage in banking activities within the period.    

Global Innovation Index    Global Innovation Index : The Global Innovation Index (GII) is an annual ranking of countries by their capacity for, and success in, innovation. It is published by Cornell University, INSEAD, and the World Intellectual Property Organization, in partnership with other organisations and institutions, and is based on both subjective and objective data derived from several sources, including the International Telecommunication Union, the World Bank and the World Economic Forum.