Wednesday, August 8, 2012

 

Europe's economies show signs of weakness

Many of the European economies are in an unstable situation. The precarious economic state of Greece, Portugal and Spain has brought the concept of the euro and European monetary union into the glare of scrutiny as never before. The news that one of Europe's leading economies, the United Kingdom, looks set to stagnate this year is really a worrisome. It is feared that continued recession in Europe would be felt around the world. Questions are being asked about the viability of the European Union itself. There is therefore a strong case for the European countries to abandon no-liberal policies and for creating an interventionist policy, which would reinvigorate the industry and thereby create more job opportunities, which will generate more effective demand.

Tuesday, August 7, 2012

Massive manpower crunch ails education system


It is true that a large number of vacancies exist in IITs, Universities, colleges and schools all over the country. But it is not due to dearth of suitable candidates alone, but mainly because of the delay in recruiting candidates for the vacancies on regular basis. None of the institutions take proper effort to recruitment teachers in time, i.e. before the vacancies arise due to retirement. For instance, there were 9 faculty members in the Department of Economics in the University of Madras, Chennai, in the year 2006. Since then 6 Professors have retired over the years. But the University authorities have not taken any steps to fill up the vacancies. Similar is the situation in other departments of the University. As a result, more than 50% of the sanctioned strength of teachers in the Madras University is lying vacant. There is no indication that these vacancies will be filled up in the immediate future. Similar is the situation in all other Universities in India. The situation is not different in Central Universities, IITs, and other such Institutions. If the Universities and other such institutions recruit teachers in anticipation of vacancies, the problem of shortage in manpower can be solved to a greater extent. Moreover, lack of pension benefits for the teachers in government and aided institutions is another reason for people taking teaching posts. Therefore, the government should try to reintroduce the pension   scheme for teachers in government and aided institutions. As far as schools are concerned, the state governments often deliberately keep the teaching posts vacant in order cut the expenditure so as to divert for other purposes. Recruitment of teachers are not done periodically in anticipation of the vacancies arising out of retirement as well as creation of new posts. Moreover, recruitment is not only delayed but also done on a piecemeal basis. In the case of schools  also teaching positions have become unattractive due to delay in recruitment, rampant corruption and lack of pension benefits. Above all, low salary is the most important factor for  lack of demand for teaching positions. Both the Central and State governments have to look into the above factors seriously in order to  solve the problem of manpower crunch in educational institutions. Dr.C.Murukadas, The Times of India, 03.07.2012

What’s wrong with our education?

 The educational set up in India is at cross roads. Education in no other country in the world is as much commercialised as in India. During the past two decades or so the central as well as state governments have  slowly withdrawn from their responsibility to provide quality education to the people.For nearly four decades,  people with philanthropic  considerations entered the educational arena and set up Universities, Colleges, Professional Colleges, Technical Institutions, Schools, etc. with the motive to serve the society. But in the recent past a new type of educational institutions have come into existence, namely self- financing (unaided) educational institutions. Thousands of unaided / self-financing schools and colleges (in engineering, medicine, paramedical sciences, pharmaceutical sciences, and arts and sciences) as well as polytechnics and industrial training institutes have come into existence during this period primarily based on profit motive rather than service to the society. These institutions have been promoted by bureaucrats, politicians, capitalists, businessmen, politicians, religious heads, communal associations, money launderers, liquor barons, smugglers, profiteers, and other such individuals, who rarely cherish the idea to serve the society. Admittedly the growth of such institutions has led to the commercialisation of education.  These institution woefully lack infrastructural facilities and qualified teachers. While they collect huge amount as capitation fees and as tuition fees, the salary paid to the teachers (including fully qualified teachers) is often a pittance compared to those employed in government and aided educational institutions. These teachers are not only denied proper salary but also security of service and other benefits. As a result, a kind of informal system of employment has emerged in the field of education also.
Most disquieting aspect is the permission granted to so many Deemed Universities  in violation of the provisions of the UGC Act,  which involved large scale corruption by the UGC Chairman and other concerned officials, besides politicians. All and sundry institutions lacking infrastructure facilities and qualified staff have been granted Deemed University status, which enabled them to become law unto themselves and loot the people. Most of these Deemed Universities have stated all kind of courses, mostly without permission, and loot people.  Some of them have started "branches” without the permission of UGC. They employ all kind of methods to attract/woe students. In some cases they promise "sure pass" . They have deployed canvassing and commission agents. One University on the outskirts of Chennai in GST road  has been awarding pass mark/ high marks to students on payment of certain amount. It also receives payment for attendance. The UGC seems keep silent on all such malpractices! Why not abolish the Deemed Universities, which were created against law? 
Dr.C.Murukadas, The Times of India, Aug.5, 2012
Bhupinder Singh Hooda's statement on FDI

Haryana Chief Minister Bhupinder Singh Hooda's statement that the issue of allowing FDI in retail should be left to the states is condemnable. FDI in retail trade will not serve any purpose. It will do more harm than benefit the people, especially to the unorganised/informal retail sector, which is a vital source of occupation and livelihood for the multitude unemployed people of the country, besides being the cushion for those who are displaced from their occupations/employment for various reasons. Evidences from various parts of the world indicate that widespread emergence of big format retail super stores have lead to extensive ruin of retail stores/shops thereby resulting in the loss of employment and livelihood to millions of persons involved in retail trade. Research findings have exposed that large scale unemployment has proved to be social dynamite. That is, increase in unemployment leads to a series of social problems, like rise in poverty, alcoholism, domestic violence, indebtedness, suicides and crime in general, leading to a chaotic situation in the society.
  Dr.C.Murukadas,The Hindu Business Line, August 5, 2012

Monday, August 6, 2012














Impact on economy due to weak monsoon

Agriculture continues to be mainstay of a large proportion of India’s population. India has about 108 million hectares of rein fed area which constitutes nearly 75 per cent of the total 143 million hectares of arable land.  In such areas crop production becomes relatively difficult as it mainly depends upon intensity and frequency of rainfall.  Estimates show that seasonal rainfall up to end July for the country as a whole
is 19% below the long period average.  Therefore, monsoon deficit   would cause enormous strains to the farmers in drought hit areas.  It will also affect the overall performance of the economy. The general public will also be affected due to increase in food inflation, which is expected to rise.  Historically, droughts and widespread floods are accompanied by rise in food prices, hunger and malnutrition.  Therefore, the central and state governments have to  initiate steps to  mitigate the sufferings of the farmers in drought hit  areas by proving them compensation for the loss of crops, besides  providing alternative income earning opportunists  primarily by  broadening the  Mahatma Gandhi  National  Rural Employment  Guarantee Scheme. Various  schemes under MGNREGA   such as: 1) Water conservation and water harvesting;2) Drought proofing (including afforestation and tree plantation);3) Irrigation canals including micro and minor irrigation works;4) Provision of irrigation facility, horticulture plantation and land development facilities on land owned by households belonging the SC and ST or to BPL families or to beneficiaries of land reforms or to the beneficiaries under the Indira Awas Yojana of the Government of India;5) Renovation of traditional water bodies including de-silting of tanks and development;6)Flood control and protection works including drainage in water logged areas;7) Rural connectivity to provide all-weather access; and 8 Any other work which may be  initiated by  the  Government  may be intensified and insulated from corruption. Moreover the government may distribute the surplus stocks of food grains at subsidized prices to the needy and deprived people.
Dr.C.Murukadas, Times of India, August 8, 2012



Sunday, August 5, 2012

 Urban Poverty Alleviation Programmes

 Urbanisation is a modern phenomenon. At the turn of the twentieth century,
 only one-fifth of the world population lived in urban areas. At present urban
 population constitutes more than one-half of the total population of the word.
 Today, in some areas, especially in the economically advanced countries,
 the majority of the people live in cities and towns, while in most others the majority
 will be living in urban areas soon. Recently, the rate of urbanisation has become more
 rapid in the less developed regions. And a greater part of the increase in world urban
 population is contributed by less developed countries. Moreover, much of the
 urban population growth is taking place in big cities. India is no exception to
 the wave of rapid urban growth witnessed by the developing countries in the
 past few decades.
While urbanisation has created serious difficulties even in the
industrialised nations, it has turned out to be virtual disaster in the less developed
countries, today. The principal force that accelerates urbanisation no longer
is industrialistion. In most of the counties in the less developed regions,
including India, there is larger urban growth than is justified by degree of
industrialisation and economic progress by the standard witnessed in the growth
of cities in the Western countries. People are pushed towards the cities from
rural areas to the already overcrowded cities. The relative “over-urbanisation”
is reflected in unemployment and marginal self employment and predominance of
the informal sector. As a result, economic conditions of a vast section of the
urban population in the less developed countries like India remain insecure.
Surveys carried out during the past decade or so indicted that one-fourth to
three-fourths of urban dwellers in these countries live in abject poverty and
squalor in an extremely deplorable living environment without access to basic
amenities and essential services. Recent data show that more than a quarter of
India’s urban population (about 95 million people) is living below the poverty.
Poverty abounds everywhere, in the big cities as well as small towns. In most
of the big cities, migrant workers are predominant among the poor. This segment
of urban poverty, of course, is the extension of rural poverty itself. Low
family income appears to be uniform features in all the cities.
The process of economic development has benefited only the upper-middle sections
of the society much more than the middle, lower-middle, and poorer sections of
society. Therefore, inequality has risen considerably over the years. As the
income earned by the poor is generally insufficient to support the family,
which is generally large, these people live in slums and squatter settlements
in deplorable living conditions and degraded environment. The numerous
anti-poverty measures have failed to make an effective dent on poverty. It is a
common knowledge that many anti-poverty measures have ended with target
setting. They continue to be in the grip of corrupt officials and greedy
politicians, who largely control much of the investment related activities on
anti-poverty programmes. In a way, poverty alleviation programmes are known for
leakage to the various intermediaries than benefit to the people.
Dr. C.Murukadas, Aug 5, 2012
TMC will oppose FDI in retail


It is  praiseworthy that key UPA ally Trinamool Congress today said it is
 opposed to FDI in retail. Estimates show that India has the highest
shop density in the world, i.e. 10 outlets for every 1000 people.  India
 is emerging as one of the largest retail markets in the world; it is
poised to become the third largest retail market, next only to US and
Chins, in the near future. The demand for goods and services in the
country is growing rapidly due to high rate of population growth, fast
increase in disposable income and rapid urbanisation. Therefore, the
potential for retail trade is high and growing. In the past decade or
so, big retails stores have come up on a large scale, all over the
country.  Besides many Indian corporates have also entered the retail
market, which has caused the ruin of many tiny retailers.
Many global retail chains are waiting in the wings to enter the Indian
retail arena. A Company like Wall-Mart, if it enters India, will sell
everything tradable in the retail market, which an ordinary retailer can
 never imagine selling. The tiny traders will never be able to stand the
 price war created by these big retailers and as a result they will not
be able to survive. These persons will not be able to find jobs in other
 sectors   because of lack of job opportunities.  Experiences show that
even retailers in the organised sector will not be capable of facing the
 onslaught from firms such as Wall-Mart, if and when it comes.
Therefore, allowing the multinational retail giants into India
tantamount to opening the Pandora’s Box.
The major  multinational retail giants expected to enter India, once 
FDI in multi-brand retail  is allowed, are: Wall-Mart (US), Carrefour
(France) , Metro AG (Germany), Ahold  (Netherlands), Tesco (UK), Kroger
(US),  Costco (US)  ITM Enterprises (France), Edeka  Zentrale (Germany).
Many single brand retail giants are also waiting for a chance to enter
 full-fledged in the Indian retail market.
Dr.C.Murukadas, Business Standard, Aug.5, 2012