POVERTY DECLINED AND INEQUALITY WIDENED IN INDIA

POVERTY DECLINED AND INEQUALITY WIDENED IN INDIA

Debesh Bhowmik

Taking 66^th NSSO survey data,Planning Commission estimated that the ratio of per capita income between top 15% and bottom 15% of the population has risen from 3.9 in 2004-05 to 5.8 in 2009-10 in rural areas but the ratio has gone up from 6.4 to 7.8 in urban areas.It showed that poverty has been the slowest in the bottom 15% of the population.The Planning Commission has said that poverty ratio for 2009-10 declined of 7.3% from 37.2% in 2004-05 to 29.8% in 2009-10,so that the number of poor  came down by 15% from 407.2million to 354.6 million  based on per capita expenditure of Rs 29 per day  for urban area and Rs 22 per day for rural area.The poverty ratio is given below,( percentage of people below the poverty line).

Year                Urban poverty             Rural Poverty  Total Poverty

1993-94           31.8                             50.1                 45.3

2004-05           25.7                             41.8                 37.1

2009-10           20.9                             33.8                 29.8

The NSSO data also showed that in rural area Gini coefficient in 2004-05 was calculated as 0.27 which increased to 0.28 in 2009-10,on the contrary, in urban areas the Gini was found as 0.35 in 2004-05 which rose to 0.37 in 2009-10,which means that both urban and rural areas inequality widened where as poverty ratio have fallen.This is self contradictory.Moreover, the richer section got top benefit from growth process of the economy.

Some comments are interesting.M.S.Aluwalia,the deputy chairman of Planning Commission said that NSSO has under estimated the consumption expenditure.The poverty estimates would not impact beneficiaries of welfare schemes. NCAER comments that poor became poorer but rich became richer.They could not say why it had happened.

They, all managed the media and forgot about their responsibilities because no inter relationship between government policy decisions and the NSSO formulation of data, as well as the estimation of Planning Commission towards the stipulated goals. More precisely, NSSO did not collect poverty data in all the years. Even, the organization could not collect macro economic data every year. Therefore, we have a lack of time series data on poverty, unemployment and so on. I think , there is no continuous process on the collection and estimation of data on Indian Economy.Experts come and exit and advice on the estimates only.

Lastly, I would say that poverty and inequality should move in the same direction, otherwise it is unhealthy.

INFONOMICS – THE NEW DIMENSION OF ECONOMICS AND INFORMATION

INFONOMICS – THE NEW DIMENSION OF ECONOMICS AND INFORMATION

Debesh Bhowmik.

The word –Infonomics is a composite of “information” and “economics.”Infonomics is to describe the study and emergent discipline of quantifying, managing and leveraging information as a formal business asset. Infonomics endeavors to apply both economic and asset management principles and practices to the valuation and handling information.

In the late 1990s, Doug Laney invented  the term Infonomics to describe his proprietary research and consulting around quantifying information’s value and defining its management as an actual enterprise asset.The primary principle of infonomics is the recognition of information as an enterprise asset

Therefore,the information has value when used in decision making.The subject motivates on three main important aspects,such as [1]Information’s value can be quantified,[2]Information’s value should be used to budget IT and business initiatives and [3]Information’s realized value should be maximized.Doug Laney and his colleagues developed and deployed information asset valuation models, information auditing methods, and information asset management practices.And it is taught regularly in foreign universities.In 2010 Laney formed the Center for Infonomics, a non-profit think tank to collaborate on and further the principles and practices, and the associated the Center for Infonomics LinkedIn Group. The same year he began lecturing on Infonomics at leading business schools  holding Infonomics workshops  and conducting press interviews on the topic.Presently,Maastricht University offers a specialization in Infonomics that combines economics and business with a focus on information, networks and information technology.We can follow the valuable book of John Ladley on the subject,ie What is Enterprise Information Management (EIM) by John Ladley, Morgan Kaufmann, 2010.In abroad,we can find  several infonomics consultancy services in EU and USA.Such services uplifts Economics to a new dimension along with IT.Indian Government should give importance on the subject in the offing,so that Indian  would be more globalised.The subject can help extensively on management and business forecasting especially in asset-pricing models, financial market and liquidity.

POLITICAL GAME BEHIND THE TWO BUDGETS

Since the particular politician of party prepared the budget then the political goal of that party must reflect.But if the targets of those goals fulfill the general masses,then no question of political war among the leaders.Still ideological conflicts exist besides the techniques of operations.Railway budget produces the conflict among the political parties and created political rivalry.Even,it emerges the question of loyalty and exclusion of decision which were not legitimate.Autocracy hits the parliamentary system and all forgot about the essence of the budget.Ultimately dictators win the race and the people become fearful.On the other hand the annual budget is come to light by the simple touch of old political ideology,the merchant and capitalists criticized it a bad budget,but it can really boost the rural development and agricultural growth.Most of the critics and politicians were interested on the political dimension of the budget and ignoring its possibility of areas of economic development.Less people talked about the future prospect of the capital market which needs India the most.The investors and the producers suffered from views of politics not economics.What India really needs,all emphasised less on it.Rather ,they calculated the matrix of partties' MPs and on hung parliament.No body played any role on economics for politics or politics for economics.

ECONOMIC SURVEY-2012--- AT A GLANCE

ECONOMIC SURVEY-2012--- AT A GLANCE

Debesh Bhowmik

Economic Survey -2012 has shown the deem picture of Indian Economy.The following are the high lights

[1] The GDP rate is declining

[2] Both agriculture and manufacturing did not show any prospects.

[3] Service sector is growing very fast,especially in trade,transport,finance etc.

[4]Saving and  Investment growth fall.

[5]  Consumption fell ,then marginally improve compared with 2006-07.

[6] Gross fixed capital formation is stagnant compared with 2006-07

[7] FDI equity rose and then fell.

[8] Share market fell

[9] Profit growth rate of Public sector banks fell but improves in case of Private sector banks.

[10] Balance of Payments  is uncontrolled.

         TABLE-1

	Growth rate of GDP	Fiscal deficit % of GDP	Inflation rate CPI % per year	Saving rate % of GDP	Consumption growth rate % per year	Gross fixed capital formation %of GDP	FDI equity flows Bi$
2006-07	9.6	3.3	6.7				5.5
2007-08	9.3	2.5	6.2	34.6	8.7	35.5	12.5
2008-09	6.7	6.0	9.1	36.8	9.2	38.1	24.6
2009-10	8.4	6.5	12.4	32.0	7.1	34.3	27.3
2010-11	8.4	4.8	10.4	33.8	7.21	36.6	25.8
2011-12	6.9	4.6	8.4	32.3	8.2	35.1	19.4

TABLE-2

	Growth rate % per year
	2010	2011	2012
Agriculture and allied	1.0	7.0	2.5
Minning	6.3	5.0	-2.2
Manufacturing	9.7	7.6	3.9
Electricity,gas,water	6.3	3.0	8.3
Construction	7.0	8.0	4.8
Trade and transport	10.3	11.1	11.2
Financial services	9.4	10.4	9.1
Community and social services	12.0	4.5	9.1
Investment growth	11.6	11.1	5.8
Current account deficit%of GDP	2.8	2.7	3.6
BSE sensex	213.5	247.8	176.4
Corporate fund Rs cr	261872	276890	203005
Net profit growth Public sector banks	0.91	0.88	0.85
Net profit growth private sector banks	1.06	1.22	1.34