- 1.A Presentation On Problems ofDeveloping India Presented By:
Shwetketu Rastogi [email_address]
2. Problems of Developing India
3.
- How do the environmental impacts of a growing population of a
developed country, the United States, compares to the undeveloped
country of India?
Taken from: http://www.claybennett.com/pages/divide.html
Population Growth 4. [Intro]duction
- Our world population is rapidly growing.
-
- Today : Over 6 billion people and on the rise
-
-
- Increased immigration / lack of migration (urbanization)
-
-
- Lack of education and contraceptive use
-
- Leads toenvironmentalandsocial impacts.
-
-
- Global Warming Natural disasters, sea level rising
-
-
- Lack of natural resources
- India and United States may differ in demographics, etc. but
the growing populations both result in similar environmental
impacts.
5. [H]ypothesis
- We predict that a growing population will cause:
-
-
- Higher rate of deforestation
-
-
- Greater loss of freshwater resources
-
-
- Strains of natural resources
- The differing nations will compare in that the trends will be
the same, rates will differ.
6. [M]ethods
- We first searched to find what causes a growing
population.
- We then looked to see the effects of the growing population on
the environment.
- Stella and Excel were used to display the impacts of the
population growth on:
-
- We also compared the two different growing populations.
7. What are we [model]ing?
- Effects on Environmental Resources:
- Effects of varying levels of these subcategories.
8. Why a [grow]ing population?
-
-
- Increased Immigration Rates
-
-
- Unintended Pregnancies ~ 40% births
-
-
-
- Younger women having children
Taken from: http://www.tashian.com/carl/archives/us-1896.gif
Taken from:
http://wwp.greenwichmeantime.com/time-zone/asia/india/images/india-flag.jpg
9. [Water] and [Forest] Factor
-
-
- Misconception of Oceans as freshwater
-
-
- Sewage deposited in water
-
-
- Urbanization more paved areas
-
-
- Lack of Oxygen production
-
-
- Increase Quantity of Carbon Dioxide (Greenhouse Gases)
Taken from:
http://static.flickr.com/33/38490644_41f946c4f2_b.jpg Taken from:
http://pantransit.reptiles.org/images/1996-07-28/washington-rain-forest.png
10. [Environ]mental Impacts
- Pollutionincrease in cars and emission of greenhouse gases into
atmosphere
- Deforestation increase in paved areas to house increasing
population
- Freshwater Availability increase in waste production and
contamination of water
- Natural Resources increase burning of fossil fuels, excessive
use of coal
- Global Warming overall increase in temperature and chances of
natural disasters
- Habitat Loss change in ecosystems affecting trophic levels
11. [Stella] Models
- Stocks population, freshwater availability and forest
areas.
- Flows births and deaths; precipitation and water use; and
forest regeneration and trees cut down.
- Converters birth rate and death rate; deforestation rate; and
per capita water use.
12. [Stella] Models India Population vs. Environ Impacts United
States Population vs. Environ Impacts 13. [Stella] Model
- Population of India and US with no external pressures
- Indiais increasing at a faster rate thanU.S .
- This is worrisome due to the lack of resources and financial
stability to support such an increase.
- We only chose to model birth and death rate, but there are
other limiting factors that encompass each, however they were not
imperative to include in this research.
India Population (In billions) US Population (In millions) 14.
[Excel] Model
- Comparing the Population of India and US with no external
pressures
- India growth rateper year:
- Indiastarts at a greater population.
15. [Excel] Model
- Population growth influencing water availability .
- Water availability decreases because there is not enough fresh
water available due to the increasing demand.
- India per capita : 1211 m^3
- USconsumes more water at a faster rate due to its higher
surface area and easier access to clean water, whereas India does
not.
- US s financial status permits usage of high-end technology to
purify water.
16. [Excel] Model
- Comparing Population growth of India and United States
influencing water availability .
17. [Excel] Model
- Population growth influencing forest area
- India The forest area started at ~67 million hectares, and
continued at a steady deforestation rate of 0.0294 million.
- United States There is a clear exponential decrease in the
forest area, leading to its possible crash, which can result in
major ecosystem changes if actions not taken.
18. [Excel] Model
- Comparing population growth of India and United States
influencing forest area
- India , although with a higher population than theUnited
Statesshows a steady decrease in its forest area, whereas theUnited
Stateshas an extensive decrease due to its high immigration rates
and urbanization, demanding more paved areas thanIndia.
- Growing population puts pressure on forest areas because of
urbanization and higher demands for wooden products.
19. [General] Conclusions
- Our models show that there are negative environmental impact
related to population growth both in developed and underdeveloped
countries.
- For every scenario, there were increases in deforestation rate
and water usage
- Although the reasons for the growth differed, the results were
similar
Taken From:
http://www.greenberg-art.com/.Toons/.Toons,%20Environ/qqxsgOverpopulation%20eclipse.gif
20. [Impli]cations
-
- If we increase the number of people educated, then thebirth
ratewould go down, resulting in a lowerdeforestation rate .
- Decreasing theforest areawill prevent natural processes from
occurring (photosynthesis, nitrogen cycle) andincreaseglobal
warming, natural disasters, damage to ecosystems, loss of animal
life.
- Decreasingwater resourcesmay in fact bring down the population
due todecreasingfood sources.
21. [Sol]utions
- Increase education programs
-
- Less of a need for urbanization (jobs)
- Be energy efficient (wind/ solar)
- Sustainable development (build vertically)
- Have better governmental regulations for an improved
economy
22. Take Home Message
- Because this is an inevitable problem we must raise peoples
awareness and environmental stewardship to lessen the effects of
overpopulation.
- Focus on the present, but have in mind the future, thus we must
start changing our actions now to foresee the future we want!
23. Poverty
24. Redefining Poverty A New Poverty Line for a New India 25.
The Government of India says that24%of Indias population is below
the poverty line.** Planning Commission of India, 1999-2000,
Government of India 26. However, we also know that
- 80% of India does not have access to public health
facilities.(Dr. Anbumani Ramadoss, Minister forHealth and Family
Welfare)
- 47% of Indian children under the age of 5 years are
undernourished.(Human Development Report 2005, UNDP)
- 71% of the children in 15-19 age group have not completed a
secondary education, their fundamental right.(National Sample
Survey on Education, 1999-00, NSSO)
- 57% of India does not have access to electricity.
- (World Development Indicators 2005, World Bank)
- 70% of India does not have access to a suitable
toilet.(National Sample Survey on Housing, 2004, NSSO)
- 49% of India does not have proper shelter.
- (National Sample Survey on Housing, 2004, NSSO)
- 38% of India does not have access to a nearby water
source.(National Family Health Survey, 1998-99, IIPS)
27. Despite such abysmal figures on Indias development, how can
the government claim that only 24% of India is poor? Clearly
something is amiss 28. The answer lies in how poverty is defined in
India
- The present poverty line is a conveniently low threshold based
largely on only caloric norms.
- In fact, it should be called thestarvation line .
- Itdoes not factor in norms for nutrition, health, clothing,
housing, education etc.
- Even worse is that the Planning Commission recognizes this
shortcoming and yet doesnt do anything about it.
29. I have learnt to seek my happiness by limiting my desires
rather than attempting to satisfy them. John Stuart Mill 30. What
is this inadequate definition?
- In 1999-2000, the poverty line defined by the Government of
India was Rs. 327 and Rs. 454 per month per capita in rural and
urban India respectively.
- Adjusting for inflation, this now comes to Rs. 368 and Rs.
559.
- ThusONLYthose who live below Rs. 559 a month in our cities (or
Rs. 368 in our villages) are considered to be poor by the Indian
Government!
31. How is this starvation line calculated?
- The present line is based on the norm that the average person
in rural India should consume 2400 calories a day and a person from
urban India should consume 2100 calories a day.
- The minimum cost of obtaining such nutrition (about 650 grams
of grains) was calculated in 1979 when this line was formed.
- All those who spent less than this amount on food were
considered poor.
- Since then, this amount was periodically updated based on
inflation.
32. The inadequacy of the present poverty definition
- The definition is based on a caloric normthat is 3 decades
old!
- Research shows that even those who are currentlyabovethe
poverty line do not meet the prescribed caloric norms.
- Calories are anyway an insufficient nutritional norm as it does
not include the need for minerals, vitamins, etc.
- Most importantly, no norms for other basic needs such as
healthcare, shelter, electricity, education have been factored
in.
33. Table 1: Percentage and Number of Poor in India since 1973 *
Year Percentage of Poor Number of Poor (crores) Annual Real Rate of
Decline in the Number of Poor ^1973-74 54.9 % 32.13 - 1977-78 51.3
% 32.89 ( 0.59 %) 1983 44.5 % 32.29 0.31 % 1987-88 38.9 % 30.71
1.25 % 1993-94 36.0 % 32.03 ( 0.70 %) 1999-00 26.1 % 26.02 3.40 %
2004** 23.6 % 24.97 0.82 % * As per the Expert Group Methodology ^
A negative rate of decline means the number of poor increased **
Based on the estimated population of 2004 and poverty ratio
calculated using the latest National Sample Survey in 2004. Source:
National Institute of Rural Development (2004):Rural Development
Statistics, 2002-03 . 34. The story of Indias poor
- Even though there has been a decline in the number of poor in
percentage terms the absolutes numbers remain quite high.
- The absolute number of poor declined from 32 crores (out of the
58.4 crores population) in 1973 to 24.97 crores (out of 109 crores
population) in 2004.
- The annual decline is a mere 0.81%
35. How defining poverty affects policy
- The present inadequate definition of poverty has ensured that
all policies aimed at alleviating poverty aim much too low.
- They focus just on the elimination of hunger rather than on
eliminating poverty as a whole.
- If every starving person was given 650 gms of food grains daily
it would cost Rs. 57000 crores a year.
- Total wage bill of babus is over Rs. 220,000* crores.
*Government of India (2005c):National Accounts Statistics 2005 ,
36. The National Rural Employment Guarantee Scheme (NREGS)
- The present NREGSguarantees one able-bodied member of each
family work at a wage of Rs. 60 a day.
- Therefore even if this person works on all 30 days of a month,
he/she earns only Rs. 1800.
- For a family of 5, that amounts to Rs. 360 per person, which is
exactly what the rural poverty line is right now.
- Therefore, this at best only ensures that each person in the
family consumes a certain quantity of food grains. Moreover, the
guarantee is only for 100 days in a year leaving the poor to fend
for themselves for the rest of the 265 days.
37. Towards a more realistic definition of Poverty
- We should aim to define poverty that visualizes it in a more
human and humane way.
- CPAS poverty line includes the cost of a nutritious diet,
healthcare, clothing, etc.
- We have also included those items that cannot be described
monetarily such as access to water, housing, education, etc.
38. I. Nutritional norms and costs
- with this information and the prices of The National Institute
of Nutrition (NIN) postulates what itconsiders is a nutritious diet
for healthy living.
- Along various food items (obtained from various official
sources), one can calculate the cost of this diet.
- Using the age-sex distribution information of the population,
one can calculate that the per capita expenditure on food that
provides for the recommended balanced diet for the average Indian
person should be aroundRs. 573 per month.
39. Cost of Diet (in Rs.) Food groups Infants Years 6-12 months
1-3 4-6 7-9 10-12 13-18 Adult Girls Boys Girls Boys Woman Man
Cereals 0.45 1.2 2.09 2.69 2.69 3.29 2.99 4.19 4.79 6.88 Pulses
0.44 0.87 1.31 1.74 1.74 1.74 1.74 1.74 2.61 2.61 Milk 7.5 7.5 7.5
7.5 7.5 7.5 7.5 7.5 4.5 4.5 Vegetables 0.78 1.17 1.57 2.35 2.35
2.35 2.35 3.13 3.13 3.13 Fruits 1.66 1.66 1.66 1.66 1.66 1.66 1.66
1.66 1.66 1.66 Sugar 0.48 0.48 0.58 0.58 0.58 0.67 0.58 0.67 0.864
1.056 Fats/oils (visible) 0.53 1.06 1.32 1.32 1.32 1.32 1.32 1.32
2.12 2.91 Total daily cost 11.84 13.94 16.03 17.84 17.84 18.53
18.14 20.21 19.67 22.75 Total monthly cost360 424 487 543 543 563
552 615 598 692 Note: Cereals include an average of rice and wheat
(Rs. 9.97) Price of Arhar is used for pulses Mustard oil is used
for calculations on visible fats/oils Source: Calculated using
Table 3 and 4 . 40. II. Meeting basic health needs
- Average monthly per capita healthcare cost can be calculated by
multiplying the probability of requiring medical care with the
actual cost of such medical care. This is called the expected value
of healthcare expenditure.
- The Universal Health Insurance Scheme* is a health insurance
scheme targeted at the low-income group. As per this scheme, for a
premium of Rs. 365 per annum, an individual can get insured for all
in-patient medical care up to a sum of Rs. 30,000.
- ThereforeRs. 365 per annum or Rs. 30 per month per capitais the
expected value of health expenditure for the poor in India.
*Ahuja, Rajeev (2004): Health Insurance for the Poor in India,
Working Paper No. 123, Indian Council for Research on International
Economic Relations . 41. III. Access to water
- The minimum water consumption as per the World Health
Organisation should be about 50 litres a day per person to cover
consumption and hygiene needs.
- However, as per the latest National Family Health Survey of
1999-00, 37.7% of households do not have access to safe water
supply within 15 minutes of their home
- You cannot put a price on this.
42. IV. Access to shelter
- Detailed qualitative information about housing in India is hard
to come by. However, there is information on the percentage of
households living inpucca , semi- pucca or katcha houses from a
nationwide survey on housing done in 2002
- In rural and urban areas, 64% and 23%* of the households
respectively do not have apuccahouse.
- Thus a weighted average of 49% of all households do not have
shelter that meets our minimum standards.
*Government of India (2004b):NSS Report No. 488: Housing
Condition in India, Housing Stock and Constructions, NSS 58th
Round, July 2002-December 2002 , National Sample Survey
Organisation, New Delhi. 43. V. Sanitation
- The condition of public sanitation is extremely poor in India.
Even the most basic living standard demands that a dwelling unit
should have access to a latrine that is either connected to a
sewage line or a septic tank.
- However, 89 per cent and 37 per cent of rural and urban India,
respectively, or a weighted average of69.5 per cent of Indians, do
not have access to such a latrine facility*.
*Government of India (2004b):NSS Report No. 488: Housing
Condition in India, Housing Stock and Constructions, NSS 58th
Round, July 2002-December 2002 , National Sample Survey
Organisation, New Delhi. 44. VI. The cost of energy
- Presently, about 57 per cent of Indian households do not have
electricity.
- Even in households that have an electricity connection, the
supply of electricity is extremely erratic*.
- With minimal fittings and reasonable usage, the monthly cost on
electricity comes to Rs. 175 for a household**.
- Considering that there are 4.99 persons to a household in
India,the per capita monthly expenditure on electricity comes to
Rs. 35.
* Government of India (2003):Electricity Act, 2003 , Ministry of
Power, New Delhi **Rate list printed by BSES, 2005 45. Minimum
Electricity Consumption of a Household in a Month Appliance Wattage
(A) Quantity (B) Usage (hours/day) (C) Units/Month (AxBxCx30)/1000
Cost (Rs. 2.2 per unit) Ceiling Fan 80 2 12 57.6 126.72 Light Bulb
40 2 4 9.6 21.12 Fixed Charges 20.00 Tax * 7.39 TOTAL 67.2 175.23 *
5% tax on variable cost Source: Rate list printed by BSES, 2005 46.
Main Type of Fuel Used for Cooking in India(percentage) Type of
fuel UrbanRuralAll India Wood 23.1 73.1 59.3 Crop residues 0.5 8.1
6.0 Dung Cakes 1.4 8.4 6.5 Coal/Coke/Lignite/Charcoal 4.9 1.7 2.6
Kerosene 21.5 2.7 7.9 Electricity 0.8 0.2 0.4 LPG 46.9 5.1 16.7
Biogas 0.6 0.5 0.5 Others 0.2 0.2 0.2 Total 100 100 100 Source:
International Institute of Population Sciences [IIPS] and ORC Macro
(2000):National Family Health Survey (NFHS-2), 1998-99 , IIPS,
Mumbai. 47. VII. Clothing requirement
- Calculating the basic need of clothing is
- difficult, as requirements vary considerably according to
region, gender, age and culture.
- We calculated the minimum amount of cloth required and its cost
for persons by age and gender living in the plains.
- The weighted average of the total costs came toRs 207 per
annumon clothing.
48. Minimum Clothing Requirements and Cost Child (Age: 0-4) Male
(Age: 5-17) Female (Age: 5-17) Male Adult Female Adult Clothing
Requirements * 1 metre of shirt material * 0.8 metre of trouser
material (includes two pairs of children s wear) * 3.6 metres of
shirt material * 2 metres of trouser material (includes one pair of
clothing and two uniform shirts and one uniform shorts/trousers) *
3.3 metres of shirt material * 1.8 metres of skirt/salwar material
(includes one pair of clothing and two pairs of school uniform) *
1.4 metres of shirt material * 1.2 metres of trouser material
(includes one pair of clothing) * 1 three-metre sari * 1 metre of
blouse material (includes one sari and a blouse) Cost of Cloth
150.68 267.96 343.00 190.39 131.07 Price of cloth for shirt,
pyjama, cloth, etc: Rs. 47.85 Price of cloth for coat, trousers,
overcoat, etc: Rs. 102.83 Price of sari (3 m): Rs. 83.22 Prices are
calculated using the weighted average of the rate at which urban
and rural India bought cloth material as given in GoI 2001c. The
figure is adjusted for inflation. 49. VIII. The right to
education
- About 71.16% of the people in the 15-19 year age group had not
completed a secondary education(1999-00)*.
- It should be the minimum responsibility of the State to ensure
that each young citizen has access to cost-free schooling with
adequate infrastructure and qualified teachers.
- Moreover, such an institution should lie within a 2 km radius
of each persons home so as to ensure not more than 30 minutes are
spent walking to school.
*National Sample Survey on Education in 1999-00 50. IX. Access
to an All-Weather Road and Public Transport
- Connectivity is probably the single most important factor
guiding whether people of a particular region are being able to
access their basic needs of education, healthcare, shelter
etc.
- Around 43% of Indian villages or over 2,70,000 villages are not
connected by road*.
- Furthermore, around 25% of villages that have a population of
over 1000 are not connected by road** .
*Lok Sabha Starred Question No. 238, dated 13.03.2001.
**Government of India (2002b):National Human Development Report ,
Planning Commission, New Delhi 51. X. Miscellaneous
expenditures
- The total cost of obtaining the fourquantified variables namely
nutrition, healthcare, clothing and energy consumption comes to Rs.
675 per person per month.
- Apart from this there are miscellaneous expenditures
- This paper includes expenditure under the heads of
miscellaneous consumer goods, miscellaneous consumer services and
durable goods.
- The total monthly miscellaneous expenditure comes toRs. 164 per
person .
Monthly Per Capita Miscellaneous Expenditure (in Rs., adjusted
for inflation) Item Rural Urban Weighted Average Miscellaneous
Consumer Goods 51.57 67.40 54.14 Miscellaneous Consumer Services
74.86 85.76 74.66 Durable Goods 30.25 22.55 26.23 Total 157 176 164
Source: Government of India (2001a):NSS Report No. 454: Household
Consumer Expenditure in India, 1999-2000Key Results , National
Sample Survey Organisation, New Delhi . 52. Poverty Ratio using a
Holistic Poverty Line Area Percentage Rural 84.6 Urban 42.4
Weighted Average 68.8 Calculated using Government of India
(2001a):NSS Report No. 454: Household Consumer Expenditure in
India, 1999-2000Key Results , National Sample Survey Organisation,
New Delhi & Government of India (2005b): Statistics, Index
Numbers , Labour Bureau, October 2005 &a poverty line of Rs.
840. 53.
- 37.7% of Indian households do not have access to a nearby water
source,
- 49% do not have a proper shelter,
- 69.5% do not have access to suitable toilets,
- 85.2% of Indian villages do not have a secondary school
and
- 43% of Indian villages do not have an all-weather road
connecting them .
The bare truth 54. The redefined poverty line
- Summing up minimum costs for nutrition (Rs. 573), health (Rs.
30), clothing (Rs. 17), energy consumption (Rs. 55) and
miscellaneous expenditure (Rs. 164);the poverty line in India
should be about Rs. 840 per capita per month*.
- * The actual sum is Rs. 839; we round it off for
convenience.
55.
- A person is poor in India if he or she has a monthly per capita
expenditure lesser than Rs. 840 OR does not have access to either
drinking water; proper shelter; sanitation; quality secondary
education; or an all-weather road with public transport.
56. TARGETING THE CO-EXISTANCE OF ECOLOGICAL AND INCOME POVERTY:
A STUDY BASED ON WASTELAND MAPPING IN INDIA 57. SUSTAINABLE
AGRICULTURE IN INDIA A HOPE OR HYPE ??? 1990s 2000 Poor 320 260 %
Population 36 19 Poverty in India Millions of poor, malnourished
and food insecure population cannot be the foot soldiers fighting
the cause of sustainable agriculture (in Million)
- Using core competence in science & technology
includingspace applications
- Setting ecological integrity
Who will feed India ?small and marginal farmers (FAO/RAP- 2001
)Poverty-geographical profile 0 20 40 60 South West East North
Central 1999-00 1983-84 % of population below poverty line 58.
WASTELAND ATLAS OF INDIA
- On 1:50,000 scale digital at village/micro-watershed level
Total wasteland : 63.8 Mha Cultivable wasteland: 45 Mha Looking
Beyond wasteland mapping..Poverty Trap .. Source:Wasteland Atlas of
India NRSA 2000 59.
POSSIBLE LINKAGES POPULATION BELOW POVERTY LINE They are often
visible in proximity to eachother highlighting the direct link
between the two ? Ecological Poverty Income Poverty 60. POSSIBLE
LINKAGES AREA (sq. km.) Area> 30%=5,67,525 Area 5 - 30%
=2,29,080
FOOD INSECURE POPULATION Ecological Poverty Depth of Hunger 61.
o Bihar, for example, is characterized by just 6 % wastelands with
57% population below poverty line.o Jharkhand, with 19% wastelands,
has got more than 60% population below poverty line.o Uttar Pradesh
has 9% wastelands with more than 44% population below poverty line.
o Similarly, West Bengal with just over 6 % wastelands has got more
than 40 % population below poverty line.Does Ecological and Income
Poverty Co-exists?No 0 10 20 30 40 50 60 70 0 10 20 30 40 50 60 %
Waste land % Population below Poverty LineAssam Bihar Maharastra
Rajasthan Andhra Pradesh R 2= 0.0167 HP 62.
- For example, Assam with more than 25 % wastelands has got more
than 45 % population below poverty line.
- Similarly, Rajasthan is characterized by more than 30 %
wastelands and 26 % incidence of poverty.
- On the other hand, there are States like Punjab with just 4%
wastelands and 11% population below poverty line, followed by
Andhra Pradesh, Haryana, Kerala, Gujarat etc.
Does Ecological and Income Poverty Co-exists?Yes 0 10 20 30 40
50 60 70 0 10 20 30 40 50 60 % Waste land % Population below
Poverty LineAssam Bihar Maharastra Rajasthan Andhra Pradesh R 2=
0.0167 HP 63. Incidence of Poverty Interventions - Program,
Technology NaturalResourcesInstitutional/Social Factor Labour &
CapitalFlow/MobilitySpatial Integration ofEconomic activities New
Lively hoodopportunities ECOLOGICAL AND INCOME POVERTY -
DYNAMICSDatabases on relationship to examine the direction of
policies/interventions? Powerlessness of poor to gain access or use
available natural resources Role of economic policies and
interventions in altering the relationship Inequitable access land,
Information, market and credit 64. Number of people moved out of
poverty as a result of additional Rs.1Million spending by
Government 0 20 40 60 80 100 120 140 160 R&D Road Irrigation
Education Power Rural Dev. Soil & Water Health Persons Source:
IFPRI Report, 1999 -1.0 -0.8 -0.6 -0.4 -0.2 0 2 4 6 8 R&D Road
Irrigation Education Power Rural Dev. Soil & Water Health
Increase in productivity Poverty reduction Percent Increase in
growth of productivity andreduction in poverty as result of
Government expenditure Government Spending,Growth, and Poverty in
Rural India 65. Government Policy and Programme towards Poverty
Reduction Targeted Interventions
- Self Employment Programme
-
- Swarnajayanti Gram Swarozgar Yojana
-
- Synergy and Convergence of (IRDP, TRYSEM, DWCRA and MWS)
-
- Wage Employment Programme
-
- Jawahar Gram Samiti Yojana (JGSY)
-
- Employment Assurance Scheme
- Infrastructure Development Programme
-
- Pradhan Mantri Gramadaya Yojana
-
- Pradhan Mantri Gram Sadak Yojana
- National Social Assistance Programme
-
- National Maternity Benefits Scheme
-
- National Old Age Pension Scheme
- Micro finance- NABARD, SHG linkages
66. Whether the various policies & interventions are
well-targeted, and addressing poverty alleviation and natural
resources development? Do they allow the economic and spatial
integration of poor and marginalized to market forces to happen ?
Are they opening up new marginal income earning opportunities in
the informal sector of economy ? Did they succeed in reducing their
dependence on natural resource base for livelihoods? REACHING OUT
DOWN THE LINE??? 67. The spatial dynamics of poverty seem to be
influenced by the rural infrastructure, availability of transport
links, and the growth of production and consumption linkages.
Bihar, West Bengal .. need investments in rural infrastructure
towards poverty reduction, while Maharastra, HP..need other
priorityEconomic & Spatial Integration to Market Forces 0 20 40
60 80 100 120 0 10 20 30 40 50 60 Wasteland (%) Rural
infrastructure Assam Bihar Maharastra Rajasthan Andhra Pradesh 0 40
80 120 0 20 40 60 80 Population Below Poverty Line (%) Rural
Infrastructure Index (%)R 2= 0.50 Maharastra HP Bihar W. Bengal 68.
On contrary, Kerala and Bihar, both being also highly food insecure
States need to have interventions in other areas for poverty
alleviation, as wastelands are quite low in these States,
Jharkhand, Assam, Rajasthan .. wasteland to be put to use towards
income generation, employment creation..The interventions in food
secured States Punjab, Chattisgarh, Himanchal, Haryana,
Uttaranchal, Uttar Pradesh and Karnataka need to be focused on
off-farm income generation.Policy Interventions towardsFood
Security0 1 2 3 4 5 0 10 20 30 40 50 60 % of wasteland Deficit in
food production (ratio) Assam Bihar Maharastra Rajasthan Andhra
Pradesh Jharkhand Kerala 69. Regression coefficient (R square)
between incidence of poverty and wastelands increased from 0.0167
at State levels to as good as around 0.5 for quite a few States at
the district level. It may increase further at village level and
thus calling for dis-aggregated wasteland mapping to establish
closer linkages with incidence of poverty. DisaggregatedPoverty
Mapping 0 10 20 30 40 50 60 70 0 10 20 30 40 50 Wasteland %
Incidence of Poverty (% poor) Adilabad R 2= 0.26 East Godavari
Chittor 70. Wasteland mapping could be used to examine the impact
of policies and interventions towards poverty reduction,In a
typical state, the focus should be on spatial integration of rural
poor to the market forces and creation of alternate livelihood
systems, Evolving the economic policy instruments which could lead
to substantial poverty reduction as well as enrichment of natural
resources base.For micro-level interventions, disaggregated poverty
mapping depicting the relationship between ecological and income
poverty is called for. 71. He and She are poor; Not because they
are borne so; In fact, it is the failure of the
institutions,polices and programme that they continue to be poor
and marginalized. -A Perception 72. EMPLOYMENT , UNEMPLOYMENT AND
TRAINING ISSUES 73. Employment and Unemployment Scenario inthe
World
- Almost all countries in the worldhaveemployment and
unemployment problem.
- A total number of 191.8 million persons wereunemployed in the
year 2005 in theworld.Theunemployment rate was around 6.3% of
thelabourforce
- 1.37 billion people though employed were earninglessthan US$2 a
day.
- 520.1 million people though employed wereearningless thanUS$ 1
a day.
- The problem therefore is of the order of 711.9million if at
least one dollar a day is considered.
74.
- Total Population as on Jan. 2005 1092.96Million
- Total Labour Force 469.94 Million
- Total Employment459.10 Million
- Totalnumber of open10.84 MillionUnemployment
- Unemployment rate as percentage Around
- of total labour force 2. 3 %
- Employment in Organised Sector(2004)26.4Million
S EMPLOYMENT AND UNEMPLOYMENTSCENARIO IN INDIA Cont... 75.
- Employment in Unorganized 432.7 Million
- No. of Jobseekers Registered with39.3 Million
- Employment Exchanges (as on 31-12-2005)
- No. of youth registered with Employment28.8 Million
- Exchange as on 31-12-2004
- Working Poor i.e. Persons working butAround 130 Million
- living below poverty line (1999-2000)
- Note:openly unemployed are those who did not carry out any
gainful activity during last 365 days.
76. Labour Force participation rates (LFPR), Work Force
participation rates (WFPR) and Unemployment rates: International
Comparison Country LFPR WFPR UnemploymentRateIndia 43.0 42.0 2.3
China 77.0 - - Japan 62.9 58.3 4.9 Australia 63.9 59.8 7.0 Malaysia
60.6 58.6 3.4 France 54.7 48.2 12.0 Germany 57.7 52.7 8.7 U.K 62.9
62.9 6.0 U.S.A. 67.7 67.7 4.2 Pakistan 49.9 49.9 5.9 Sri Lanka 57.3
57.3 10.6 77. STRUCTURE OF WORKFORCE
- Vast majority of workers in Agriculture
- A significant proportion of them are below poverty line
78. Approach by various Countries
- Various countries are trying to address theproblem
ofunemployment through variousmeans.
- Developed countries are trying to have separateemployment
policies.
- Developing countries are relying on economicgrowth as well as
special employment generationprogramme.
- Export of labour force to other countries will notbeeasy unless
labour force in developingcountries canclaim better skills.
79. Approach to Employment in Economic Planning-India
- Planning in India focused on economic growth.
- Generation of employment was viewed as part oftheprocess of
development and not as a goal inconflictwith, or to be pursued
independently of economicdevelopment
- Thus there is no employment policy as such andadditional
employment generation is attemptedthrough growth process and
through specialemployment generation programme
80. Age Distribution of Population(India) Age group 1991
MaleFemale 2001 MaleFemale 0-14 37.7337.7935.635.07 15-34
33.2534.14 33.6733.9435-59 22.3521.3923.3322.91 60 +
6.676.667.398.08
- No substantial difference in age distribution between 1991 and
2001even for those in the age group 15-34.
81. Productivity, Employment Growth and Development(India)
- Labour productivity (in terms of per capita output)isquite
low($3.05), compared to the advancedcountrieslike
USA($40.72),UK($30.92), Even China ($4.39)hasbetter labour
productivity than that of India.
- Economic development, productivity andemployment growth are
still positivelycorrelated.Theextent of correlation varies from
sector to sector.
- While in services sector these have highcorrelation,the
industrial and agriculture sector thecorrelation is low.
(Continued)
82. Productivity, Employment Growth and Development
(Continued)
- Unlike in developed countries, in developingcountrieslike India
where demand has not yetreached thesaturation point
Productivityincrease had noretarding effect on employment.
- Technological development in various sector hasnotyet reached
to that level which leads toEconomicgrowth without any
employmentgrowth.
83. PROBLEMS
- Population growth and consequential increase in thelabour
force. 10 to 12 million persons are entering thelabour force every
year.
- Productivity and income generation from employment are
low.
- Th ough, open unemployment is only2.3%(11 million)
- the percentage of the population below the poverty line ishigh.
The fact of being employed is obviously
- no guarantee of escaping from poverty,which in our
situationrefers to a very basic level of subsistence.
- Out of around 470 million work force as many as 130millionare
working poor. Therefore the problem is of the order of130+11=141
million.
84. MAIN ISSUES There are primarily two main issues namely:-
Issue no-1 How to provideemployment to the new entrant to thelabour
force and to the unemployed. That is how tocreate additional
employment opportunities needed. Issue no-2 How to improve quality
of employment so thatproductivity and income level of the
workforceincreases. 85. Basic Assumption
- Economy has the capacity to provide gainful employment to all
the persons in the labour force
- The workforce is not able to get decent work because of non
availability of skill required in the labour market
86. Action taken to tackle Issue No-1
- Planned Initiative. Tenth Plan envisages creation ofaround 10
million jobs each year, around 6 million fromnormal growth process
and around 4 millionthroughspecial employment generation programme
proposed for sectors.
- Economic growth and employment growth beingcorrelated attempts
are made to achieve 8%growth rate of the economy so that
anticipatedemployment generation takes place.
- As against a target of 10 million per year around12million
persons per year were providedemployment during 2000-2005
87. Action taken to tackle Issue No-2
- Provide skill training to the new entrants to the
- Improving skill level of the work force.
- Organize Skill training as per the market demand. Thatis, it
should cater to the needs of both organized andunorganized
sector.
88. Skill with the Labour Force
- Skill is acquired by the new entrants to thelabour force
throughtwo channels namely:-
- Formal skill training through various institutions run by
Government and Private. Around 2.5 million through Government
Institutions and few hundred thousand through private
institutions(exact estimates are not available for private
sector).
- Informalmeans i.e through on the job training, learn while
working, apprenticeship training, helping the master craftsman,etc.
Majority of the work force acquire skill through this channel .
Such skills arenot certified and their skill level not known and
hence such workers suffer from mobility for betterment, up
gradation of their skill and consequential improvement in their
living.
89. Formal Skill Training
- Training is imparted in various trades designedprimarily to
suit organized sector
- Around 2.5 million get training each year throughvarious
ministries/ departments of centralgovernment.
- Industries are associated with training through
- institute management committee.
- Formal test conducted and certificate issued.
90. Skill Training Addressed to Informal Sector
- Skill acquisitions through informal means can not
beavoided.
- Skills thus obtained require testing and certification.( for
construction industry it has been taken up. Forother industry it is
beingworked out)
- For those skills which are required and normally notobtained
through informal channels/ not available insufficient numberspecial
efforts are made to organisemodular practicaloriented course
byutilizing existinginfrastructure( i.e ITI, polytechnics, schools
etc) andmaster craftsman.
91. Skill Training Addressed to Informal Sector (Continued)
- In the Institute of Excellence being developed it is aimedthat
side by side with production of world class workmanmodular course
will help them in self employment andengagement in informal
sector.
- Various Ministries and Departments also areaddressingthe needs
of informal sector while designing skill trainingfor the sector
dealt by them.
92. THANKYOU 93. Transparency International India Business
Action on Anti - Corruptionthe challenges and possibilities the
challenges and possibilities 94. First the Figures Transparency
International India
- India ranks 85 out of 180 countries surveyed in Transparency
Internationals 2008 Corruption Perception Index (CPI), with an
integrity score of 3.4,an indicationthat in spite of some progress
made, corruption continues to be perceived as rampant and endemic
by the various CPI sources.
- The 2007 World Bank Governance Indicators suggest little change
over the years, with the country fairing poorly in terms of
regulatory quality and control of corruption
- Freedom House 2008 comes to similar conclusions, pointing out
that government effectiveness and accountability continue to be
undermined by close connections between crime and politics, weak
state institutions and widespread corruption.
- India Corruption Study 2008, conducted by TII indicates that
BPL households paid Rs 9,000 million as bribe to avail basic and
need based services .The percentage of respondents paying bribes to
access services was especially high for the police, Land
registration and housing.
95.
- A recent analysis of reports of bribery demands in India
conducted by Trace International was published in January 2009 and
provides an overview of the general patterns of corruption in the
country. 96 anonymous reports about bribery demands were filed
between July 2007 and October 2008 on the organizationsBusiness
Registry for International Bribery and extortion (BRIBEline), a
secure, multilingual, online tool for reporting bribe demands
worldwide.
- And finally, India is also perceived as exporting international
corruption outside its borders. The country comes at the bottom of
Transparency Internationals 2008 Bribe Payer Index ranking 19 out
of 22 countries with a score of 6,8. This indicates that Indian
firms are perceived by business people as very likely to engage in
bribery when doing business abroad.
Transparency International India Contd.. 96. Corruption as we
know is not limited to the government sector.Corruption occurs
where the private and public sectors intersect. There is both a
demand side (bribe solicitation) and supply side (bribe giving) to
corruption, and the supply side often takes the form of bribes paid
by the private sector. Transparency International India Corruption
Its perspective 97.
- Corruption in the private sector affects public interest. It is
the public that suffers in the end
- In order to attract investment, it is important to ensure that
business cost is low ; and corruption whether in private or public
sector, increases business costs.
- Private and public sectors are intertwined. As more and more
government functions are outsourced to the private sector, many
private companies are now performing functions that were once
performed by the government.
Transparency International India Why deal with Private Sector
Corruption 98.
- Cases involving contracts or procurements of services or
supplies
- Cases involving corrupt offenders who supervise contractors or
suppliers, for example, not checking on the quality of work or
product delivered and overlooking deficiencies
- There are those who are corrupt, and have access to sensitive
data which they divulge to unauthorized persons in return for some
award
- Then there are those who are in a position of authority such as
CEO or General Manager, who take bribe and grant approval for
various matters in favor of bribe givers
- In some cases corruption is mixed with other offences. For
instance, the companys books might be cooked up to hide corrupt
transactions or make fake invoices to reflect fictitious
transactions.
Transparency International India Types of corruption in private
sector 99.
- Recovery Agents:Perturbed over the way certain banks went
overboard to provide advances and then used the services of
recovery agents to recover the debts, the countrys banking
regulatory Reserve Bank of India (RBI) came up with the guidelines
for Recovery Agents.
-
- It is true the borrowing and lending are the key elements of
banking and the system will collapse if large number of debtors
fail to repay the money. Prudence requires that one should not
borrow more than ones capacity to repay. At the same time, it is
also the job of the bankers to ensure that the borrowing person has
the capability to service the debts. Ideally, the responsibility
for successful conduct of banking services must rest with both, the
bankers and the borrowers.
-
- It so happened that some aggressive bankers, in their bid to
acquire assets, started lending money to borrowers without doing
due diligence. Instead of checking the credentials of borrowers,
they started providing funds on the basis of signals received from
their recovery agents.
Transparency International India Types of Corruption in India
100. Transparency International India Contd
-
- In case of defaults, the recovery agents, who received hefty
cuts, adopted abusive practices to recover loans. In several cases
they impounded the vehicles of the borrowers, threw out persons
from houses, beat up and abused defaulters in public etc. The worst
was that even the police did not help the victims of violence.
-
- Aggrieved persons went to consumer and higher courts and
received relief. In several cases courts imposed heavy fines on the
banks. The courts, as expected, generally held that banks should
not go overboard and follow the lawful methods to recover
debts.
-
- In view of the gravity of situation, the RBI came out with a
guideline on recovery agents prescribing a code of conduct and
procedure for training.
101.
- The country has witnessed various stock market frauds by
brokers in collusion with corporate to cheat investors and hoodwink
regulator SEBI. There were two major securities scam in the recent
past Harshad Mehta securities fraud and Ketan Parekh scam.
- The modus operandi was quite simple. Brokers pushed the prices
of selected shares through artificial trade to attract retail
investors and than suddenly withdraw from the trade. In several
cases the shares of bogus and paper companies were raised to
unreasonable levels. Once the scandal was exposed, the share prices
collapsed resulting in huge loss to investors, especially those who
invested their money on hearsay without ascertaining the
credentials of the company. Herd mentality proved expensive for
many. Having suffered huge losses, few investors even committed
suicide.
Transparency International India 102. Transparency International
India Contd..
- Another aspect of the stock market fraud that came to light in
recent years was the initial public offer scam IPO scam. In order
to encourage participation of the small investors, SEBI devised a
formula for allocation of shares. It is mandatory for the companies
to allot shares to subscribers in public issues in accordance with
that formula.
- However, in order to corner the shares earmarked for small
investors, some companies and brokers opened fictitious banks
accounts in large numbers and made applications through them. The
trick worked well till culprits and their modus operandi was
exposed.
103. Transparency International India
- The other corporate fraud, which prevails not only in India but
also elsewhere in the world, isinsider trading.SEBI has been
constantly trying to strengthen the guidelines to check insider
trading. Cases of insider trading do come to light of and on and
the companies are often fined and brokers are banned from dealing
in securities for specified time depending on the gravity of
offence.
- Stock market frauds are not something new to India .It is the
urge to make quick money, and not long term investment, that is
attracting investors to the capital markets. The investors today do
not care for dividend. They look for fast capital appreciation and
play in the markets even with borrowed money.
- Though individuals are free to do what they want with their
money, the regulator must ensure that everyone plays by the
rulebook. And more importantly, once a violation is detected it
should not go unpunished. Secondly, the punishment
shouldcommensurate with the crime otherwise it will have no effect
either on the defaulter or deter others from adopting similar
methods to make quick money.
104. Transparency International India
- High economic growth has resulted in proliferation of technical
institutions in the country. However, their conduct is not always
overboard. Many of them, especially those managed by private
individuals or trusts, tend to exploit the situation and fleece
students by adopting unethical and coercive methods.
- The institutes should ideally earn their revenue from fees
charged for educating students and not through other means.
Unfortunately, many institutes admit students much ahead of the
academic session and charge full fee from them in advance. What is
appalling is that they do not refund the fee if a student, before
the beginning of the course, opts to join some other
institute.
- Often the institutes ask the students to deposit original
certificates to prevent them from joining other colleges or
institutions. As a result of such a coercive action, students get
stuck with an institute, though they may qualify to study at better
places.
105. Transparency International India Contd..
- Such practice has no justification and amount to trapping
students and making unlawful gains by forfeiting full course fee
that runs into lakhs of rupees.
- In order to prevent exploitation of students by technical
institutes, the regulator All India Council for Technical Education
(AICTE) came out with a public notice asking institutes not to
forfeit fee if a student decides to leave the institute before
beginning of the course.
- Similarly, the AICTE has asked the institutes not to keep
original certificates of students to force retention of admitted
students.
- The public notice, which was issued with a view to checking
commercial of technical education, would prevent institutes from
adopting unethical methods to confiscate fees and force students to
join a particular institute.
106. Transparency International India
- Scuttling competition is another kind of malpractice in which
corporate indulge in their pursuit to maximize profits. They often
form cartels bypassing laws and bending the rules of competition.
Such practices become more widespread when the laws are unsettled
and enforcement remains weak.
- In order to encourage competition and prevent misuse of
dominance, the government enacted the Competition Act in 2002.
However, it is unfortunate that such an important commercial law
could not be put into effect six years after the legislation was
approved by Parliament.
- With the initial glitches getting over, the Competition
Commission is likely to become fully operational by the end of 2008
or early 2009. Thereafter, it would become easier for the
government to check malpractices resulting from formation of
cartels, economic dominance or predatory pricing.
107. Transparency International India Contd..
- The issue of cartelization assumed more significance with
inflation touching the seven year high mark around May 2008.
Apprehensions are often expressed that cement and steel
manufacturers are behaving like a cartel to exploit the price
situation and fuel inflationary expectations.
- Corruption in the private sector has many dimensions and goes
beyond the traditional practice of giving and accepting bribes for
personal gains. You will find out more about corruption in the
private sector in our Global Corruption Report of 2009 due for
release in June.
108. Transparency International India Specific Corruption Risks
in Private to private transactions
- For the larger contracts : Bidding cartels where there is
- Agreement who enters lowest bid
- Agreement to rotate bid of winning company
- Compensation for bidding costs etc etc
- Nearly always for a public sector agency, if fraud is well
organized, its difficult for the procurement agency to detect.
109. Transparency International India Corruption in SMEs
- SMEs are vulnerable to both private and public sector
solicitation. Sometimes they have to
- Pay to be on the bidders list
- Required to pay kickbacks to procurement officials
- Are under pressure to work with corrupt partners or agents who
in turn demand bribes
110. Transparency International India Private vs. Public
Sectors
- Policies and procedures in private sector are comparatively
less comprehensive and detailed than the public sector
- Perceptionthat offences committed in public sector are more
serious than the ones in private sector
- Enforcement agencies for public sector more mature
- Private sector and public sector are intertwined because
private sector provides goods and services to public sector
- Some of the above are challenges in curbing corruption in the
private sector .
111. Transparency International India Governmentefforts to check
corruption Some of the above are challenges in curbing corruption
in the private sector.Some of the above are challenges in curbing
corruption in the private sector.
- The Indian Government and its regulatory bodies during the
course of last year have introduced various legislations and
regulations having a direct and indirect bearing on corruption,
corporate frauds and questionable practices being followed by the
private sector companies. Some of the important ones are as
follows:
- Consent Orders : Countrys capital market regulator Securities
and Exchange Board of India (SEBI) 1came out with an important
circular on Consent Orders. What it meant in practice was that the
person who had committed a violation could go the regulator, accept
his guilt and get rid of past sins by paying a monetary penalty,
proposed by him and agreeable to the regulator.
- Although the very concept of Consent Orders involves ethical
issues, one may appreciate that it would substantially reduce the
workload of the overworked the SEBI and at the same time help
individuals, companies and firms to get petty violations resolved
by payment of a penalty termed as consent fee.
112. Transparency International India Contd..
- Unfortunately, the provisions are being used by large corporate
houses and brokers to wash away bigger sins like involvement in the
Ketan Parekh securities scandal, the initial public offer (IPO)
scam and even violation of insider trading norms of the SEBI.
- If the scope of Consent Orders is not narrowed down, they will
only encourage private companies and habitual offenders to become
bolder, take advantage of the loopholes and make money at the cost
of ordinary investors.
- The extent to which these Consent Orders should be used could
be a matter of debate, but no useful purpose would be served if
everyone starts taking advantage of the provisions freely and
frequently.
113. Transparency International India Contd..
- Competition Act:Although the Competition Act 2was enacted by
Parliament in 2002, it remained a non-starter because of the court
cases filed by the lawyers mainly over the composition of the
Commission.
- Countrys apex courtSupreme Court of India , stayed the
operationalisation of the vital provisions of the Act and asked the
government to amend the law. The government after much
deliberations and delay amended the Competition Act in August 2007,
as assured to the Supreme Court during the course of
arguments.
- In addition to advocacy role, which the Commission is
performing even today, it will be able to check corporate
malpractices like abuse or misuse of dominance and cartelization.
It will also have the powers to inquire into mergers and
acquisition and prevent formulation of conglomerates to the
detriment of consumers.
114. Transparency International India Counter Measures
- Integrity Pact :which is a tool developed by TI to help
government , businesses and civil society intent on fighting
corruption in the field of public contracting. It consists of a
process that includes an agreement between a government or
government department and all bidders for a public sector
contract.
- In specific contracting process, the IP is intended to
accomplish two primary objectives :
- To enable companies to abstain from bribing by providing
assurance to them that their companies will also refrain from
bribing, and
- Government procurement, privatization or licensing agencies
will undertake to prevent corruption , including extortion, by
their officials and to follow transparent procedures
- To enable governments to reduce the high cost and distorting
impact of corruption on public procurement , privatization or
licensing.
- So far in India 32 companies have signed IP including Coal
India, SAIL, BHEL, NTPC, Container Corporation of India etc. What
is important is that IP have to be implemented in letter and
spirit. Its is a tool to counter corruption. We would like to
invite private sector to adopt and follow IP in letter and
spirit.
115. Transparency International India Good Private sector Anti
Briberypractice is a six step process
- Assessment of specific corruption risks of the business
- Development of detailed anti bribery policies
- Implementation of the policies
- Self monitoring of the effective implementation of the
policies
- Public reporting on the policies and related programs
- Independent assurance of the effectiveness of these
efforts
116. Transparency International India Working together with
civil societies, government and private sector to develop and
disseminate anti corruption messages. Regional and international
initiativesprovide a forum for private sector, public sector, and
civil society actors to come together with a common goal of
reducing vulnerability to corruption .India is a signatory to UNCAC
and UN Convention against Transnational Organized Crime but not yet
ratified. We are pushing the Government for it and we need your
support. Finally,attitudinal changeis necessary. By changing our
thoughts, we can change our attitude and thereby change our
behavior, which can change our lives. The quality of our thoughts
equals the quality of our lives.Let us all work towards changing
our attitude towards corruption. Lets say No to corruption..
DevelopingCode ofCorporate Governance 117.