...He had set an exemplary record that those of us from South Asia who followed him at Yale, such as Bashir Karamali, Parvez Hasan, Syed Nawab Hyder Naqvi, Syed Naseem, and myself included, could only envy. In the late seventies, I interacted with Mahbub at the World Bank, where I spent three years at the Development Research Center. I still recall our discussions at the Bank about the Basic Needs Approach to economic development. As the Special Adviser to the UNDP Administrator, he pioneered the concept of Human Development and developed the Human Development Index (HDI). We resumed our discussions, this time on the conceptual and measurement issues related to HDI. Our debates were always friendly, and even though we strongly differed on development strategies, we were united in our belief that eradication of abject poverty and enabling each individual to achieve a fuller and richer life according to his or her own lights have to be the overarching objectives of any development strategy. The world of economics, and we in South Asia, lost a beacon of light, and a source of fresh ideas and innovations, when he was snatched away from us. Let me take this opportunity to pay tribute to his wife Bani, who is not only valiantly and successfully carrying on his legacy, * Samuel C. Park, Jr. Professor of Economics, Yale University. I thank Jessica Wallack for her research assistance and valuable comments. A. R. Kemal, Mohsin Khan, Nicholas Hope and Ijaz Nabi also provided helpful comments...
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...Economics Economies of Scale Reduction in cost per unit resulting from increased production, realized through operational efficiencies. Economies of scale can be accomplished because as production increases, the cost of producing each additional unit falls. Diseconomies of Scale “Economies of scale” is a simple concept that can be demonstrated through an example. Assume you are a small business owner and are considering printing a marketing brochure. The printer quotes a price of $5,000 for 500 brochures, and $10,000 for 2,500 copies. While 500 brochures will cost you $10 per brochure, 2,500 will only cost you $4 per brochure. In this case, the printer is passing on part of the cost advantage of printing a larger number of brochures to you. This cost advantage arises because the printer has the same initial set-up cost regardless of whether the number of brochures printed is 500 or 2,500. Once these costs are covered, there is only a marginal extra cost for printing each additional brochure. Economies of scale can arise in several areas within a large enterprise. While the benefits of this concept in areas such as production and purchasing are obvious, economies of scale can also impact areas like finance. For example, the largest companies often have a lower cost of capital than small firms because they can borrow at lower interest rates. As a result, economies of scale are often cited as a major rationale when two companies announce a merger or takeover. However...
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...India and the Global Financial Crisis What Have We Learnt? 1 - Duvvuri Subbarao _________________________________________________________ Thank you for inviting me to deliver the 2011 K R Narayanan Oration. It is an honour to which I attach a lot of value. President Narayanan 2. Late President Narayanan was a distinguished diplomat, a reputed parliamentarian, a capable minister and above all an erudite scholar. Born at the very bottom of India’s social pyramid, he rose on to occupy the highest office in the country with no assets other than hard work, integrity and humility. ‘A working President’, as he described himself, he never allowed dogma to overwhelm his beliefs and convictions. 3. President Narayanan was in office from 1997 to 2002, a time when globalization, as we are experiencing it in the current times, was taking root. At the banquet he hosted for the visiting US President Bill Clinton in New Delhi in March 2000, President Narayanan remarked: “Mr. President, we do recognise and welcome the fact that the world has been moving inevitably towards a one-world... But, for us, globalization does not mean the end of history and geography, and of the lively and exciting diversities of the world.” This was a thoughtful remark. As much as globalization may be inevitable, history and geography need not be destiny. If we learn the lessons of experience, we will not repeat the same mistakes. This indeed is the topic for my 1 K.R. Narayanan Oration by Dr. Duvvuri...
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...Nowadays in China, one issue is getting more and more severe as the increasing development of China’s economy, that is, environmental pollutions. Starting with air pollution, along with water pollution and soil pollution, China is currently facing the most serious problems than ever before. Establishing of many industrial factories has made China a top share in manufacturing. However, neglecting of protecting the environment while developing manufacturing has already resulted in lots of problems, such as the PM2.5 problem in many major cities, as well as the extreme lack of clean drinking water. On the other hand, concerns over global environmental issues, such as global warming, depletion of the ozone layer, deforestation, loss of biodiversity, trans-boundary movement of acid rain, and hazardous waste, etc., are mounting worldwide. About 25 years ago, a law named Environmental Protection Law of the People's Republic of China, which set out basic principles and directions for formulating environmental policies, was enacted on December 26, 1989. This Law was formulated for the purpose of protecting and improving people's environment and the ecological environment, preventing and controlling pollution and other public hazards, safeguarding human health and facilitating the development of socialist modernization. The law has stated that The state shall encourage the development of education in the science of environmental protection, strengthen the study and development of the...
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...of being placed in a higher tax bracket and therefore paying higher tax payments is the wrong mindset for them and anyone else to have. Having that kind of mindset lets me know that they have been given misleading information on how our tax system works here in the United States, and as I stated earlier, it is essential that we first and foremost understand taxes in order to make important financial decisions. It would be understandable for...
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...California to China, all over the world people have joined the Occupy Wall Street movement. This movement started last year of September, 2011, and by the looks of things it doesn’t look like protesters will stop fighting for what they believe in. All across the globe, people are saying “enough is enough” as they unleash their frustration on the following issues: unemployment, health care coast, and corporate greed. According to the members of Occupy Wall Street, the reason why the world is suffering from these issues are because of the banks and the super rich. More so than ever it is time for American to began to take more of an interest in the suffering economy that we live in. We must begin to investigate the true meaning of how our monetary and fiscal policy is supposed to work in our recessed economy. As expressed by the Occupy Wall Street protesters it is clear that greed has lead to our financial windfall. Leaving me to wonder do our elected officials really understand how our economics system works. Like the Occupy Wall Street protesters the American people have a wide range of complaints, demands, and goals. The American people along with cries around the world are tired of "the collapsing environment, labor standards, housing policy, government corruption, World Bank lending practices, unemployment, and the increasing wealth disparity of a poverty stricken nation"(Occupied America) Different people have been affected by different aspects of the same system; they...
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...revitalization of Africa. It envisions nothing less than the complete transformation of Africa into an economic and social powerhouse – from being the basket case of the world to a guiding light - showing the people of the world an example of living in peace with each other and in harmony with Nature. Although great thought and years of research have gone into the formulation of this entirely new economic development model, this book is not simply a treatise on economic theory, but rather a practical outline that is at this very moment being gradually implemented. Economies are confined by the laws that protect and govern their development. The policy changes put forth in this model are just that - individual economic policy changes put in place to allow the economy to develop in a way that is most beneficial to the citizenry of an African village. This model does not rely on a new type of man inhabiting the African village. Men in our model make decisions based on individual incentive founded in self-interest, as it exists within the confines of law. Thus the economic underpinnings of this model do not rely on a selfless citizenry acting for the betterment of the whole to remain logically consistent. With the goals of minimizing exploitation of people and degradation of...
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...Micro and macro economics play a huge role in businesses. Everything from demand in a particular market, to the decision making based on the entire economy. Without these two key elements, a company would have no professional structure. What is the difference between these two terms and why are they so important? Microeconomic is the main study of economics in a market. It takes a close look on how consumers are using their money and to what extent they are willing to go to obtain these products. Many people every day of course buy the essential needs. Gas, food, water, and anything else an individual needs to get through their day. What are the consumers buying the most of in relates to brands? How much are they buying and how many people purchase these items and of course how much are they spending. In micro economics we take all this information into account. This is essential when a company is either releasing a new product or changing their prices. Usually the data we gather from current sales of your competition in a certain market will reflect your company as well. Competition is a widely familiar term in America. It is also a very repeated study between company’s. A normal business pays large attention to their competitors because it determines a normal grossing of sales. If you think about, every sale that goes to another company could have been a sale to a different business. They like to gather information about why the customer chose this company...
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...such as, man, material, money, machine and management. These internal factors change the function of business. External factor are those factors which are beyond the control of business enterprise. These external factors are government factors, legal factors, physical factors and demographical factors. External environment or factors are also two types, micro environment and macro environment. Micro environment consist of suppliers, customers, market intermediaries, competitors and public. Micro environment is also known as operating environment. Another external environment or factors macro environment consists of non-economic environment, political environment, technological environment and socio-cultural environment etc. Business environment has some typical characteristics. It is a constantly changing system. Both short term and long term impact works on business environment. One of the most important characteristics of business environment is uncertainty. Task1 1(a) Identify the purposes of different types of organization There are many different types of organization in our socio-economic life. One organization is different from another organization. They are mission, goal, objective all are different. Some organization purpose is to earn profit, some are non-profit, some are built for mankind etc. let us discuss this different types organization and their purpose. Private organization: The purpose of a private organization is to produce quality products at low cost...
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...house.gov/committees/bank/hba57160.000/hba57160_0f.htm EXCHANGE RATE STABILITY IN INTERNATIONAL FINANCE FRIDAY, MAY 21, 1999 U.S. House of Representatives, Committee on Banking and Financial Services, Washington, DC. The committee met, pursuant to call, at 10:00 a.m., in room 2128, Rayburn House Office Building, Hon. James A. Leach, [chairman of the committee], presiding. Present: Chairman Leach; Representatives Bachus, Ryan, Toomey, Frank, Sherman, Mascara and Inslee. Chairman LEACH. The hearing will come to order. On behalf of the committee, I would like to welcome our distinguished panel of expert witnesses to the second in the committee's series of hearings on international economic issues. Yesterday the committee addressed a wide spectrum of issues associated with debate over proposals for a new international financial architecture. Today we will home in on a critical element of that ongoing discussion, the question of which exchange rate systems best promote global economic growth and stability. Page 2 PREV PAGE TOP OF DOC Until very recently, the issue of appropriate currency arrangements was missing in action from the official agenda for global reform. The existence of this gap presumably reflected the substantial divisions on this issue among economists and policymakers. In any regard, these divisions became manifest in the remarkable inconsistency of policy advice provided on exchange rates by the official financial...
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...landowners and professional politicians." — Che Guevara, Marxist revolutionary Democracy is not only a political system… It is an ideal, an aspiration, really, intimately connected to and dependent upon a picture of what it is to be human—of what it is a human should be to be fully human. — Nikolas Kompridis Republic In contemporary usage, the term democracy refers to a government chosen by the people, whether it is direct or representative.[79] The term republic has many different meanings, but today often refers to a representative democracy with an elected head of state, such as a president, Definition While there is no universally accepted definition of 'democracy',[7] equality and freedom have both been identified as important characteristics of democracy since ancient times.[8] These principles are reflected in all citizens being equal before the law and having equal access to legislative processes. History of democracy Ancient origins Democracy has its formal origins in Ancient Greece,[3][20] but democratic practices are evident in earlier societies including Mesopotamia, Phoenicia and India.[21] The term Democracy first appeared in ancient Greek political and philosophical thought. The Greek city state of Athens, led by Cleisthenes, established what is generally held as the first democracy in 507 BCE. Middle Ages During the Middle Ages, there were various systems involving elections or assemblies, although often only involving a small amount of the population...
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...The only reason we accept the system without a second thought seems to be that it has the weight of tradition behind it. But the weight of tradition is not enough to justify its validity, as the author shows. The basic thesis of the book goes like this. Money, in the sense of credit, is not and has not for a long time been created by the governments of the world. Instead, it is created by the banks every time someone borrows from them, and along with it is created an equal amount of debt. This is how it works. You borrow a sum of money from the bank. They don't take it out of their assets--they can't; their assets belong to other people. Instead, they magic into existence a credit balance in your account. You spend the money, which goes round and comes back into the banking system: at the same time you are working to get money to pay off the debt you owe. The money the bank created, and the money you have made by working, come back to the bank, get added to the bank's assets, and get used as the basis for more and larger borrowing. Right now there is more money around than there has ever been--but it's almost all debt-based. The government closes hospitals and schools down because of lack of money. Does that mean there are suddenly not sufficient people with sufficient ability and sufficient willingness to keep these hospitals and schools running? Of course not! All it means is that the government mistakenly believes that "lack of money" equals "we can't do it". We have become slaves...
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...The role of NGOs in economics and politics NGO’s are non government organizations. They work for welfare of people without any greed of money or profit. · Politicians barely do anything for the country. NGO’s are there to fill those gaps. · They are well known as building blocks of the global community and as contributors to economic production, employment, institutional innovation, and technology. · They work for the people and enjoy support of a lot of people. They support people and work represents their voice. · In most cases NGO’s prove to handle issues much better than the government, however, they cannot replace the government. · Even today, unfortunately there many NGO’s that produce fake papers and work and take support from government. · If NGO’s can work for people’s interest without any intention of money and profit, they can be a better substitute of the government. China market - a threat to Indian market China has always been compared to India in terms of population and technological advancements. China undoubtedly has a humongous software market, but is definitely not a threat. · India has its own unique power and intelligence. · Indian IT companies have captured Asia and Japan as well. · India is becoming one of the world’s largest internet and mobile user’s country. · India’s mobile market is growing by leaps and bounds. · Most countries prefer employees from India rather than China because of communication barrier. English is spoken...
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...http://whynationsfail.com/ Democracy, What Is It Good For? [pic]Daron Acemoglu and James Robinson In an earlier post, we reported on our research joint with Suresh Naidu and Pascual Restrepo, “Democracy, Redistribution and Inequality”, which showed very limited effects of democracy on inequality. So one would be excused for paraphrasing Edwin Starr’s famous song and Ian Morris’s forthcoming book, War! What Is It Good for?, and ask “democracy, what is it good for?” Certainly not economic growth, most would reason. This conclusion is based on a consensus engulfing both academia and the popular press that democracy is at its best irrelevant for growth, and perhaps even a hindrance. For example, Tom Friedman wrote in the pages of The New York Times: One-party nondemocracy certainly has its drawbacks. But when it is led by a reasonably enlightened group of people, as China is today, it can also have great advantages. That one party can just impose the politically difficult but critically important policies needed to move a society forward in the 21st century,” Friedman wasn’t making this up. Robert Barro, who has written several papers on the topic, argued in his book Getting it Right: Markets and Choices in a Free Society: More political rights do not have an effect on growth… The first lesson is that democracy is not the key to economic growth. A recent survey of the recent literature similarly concludes: The net effect of democracy on growth performance cross-nationally over the...
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...Global Climate Destabilization What comes to mind when you think of death? Or what are some of the possible ways that large groups of people may die from? Have you ever thought of being killed through a way that you wouldn’t have died otherwise such as cancer, famine, storms, floods, droughts or epidemics? And the list goes on and on. Well, what if all these probabilities could be part of what global warming can do. Terrifying is in it? As the earth’s population multiply and human activities increase causing the earth’s temperature to rise, can we say that humanity is in charge of the fate of the human race? Because the problem of global warming is increasing so rapidly around the globe, we must develop a policy instantly; we pay no attention to our danger. Global warming or the increase of the earth’s temperature is caused by the amount of different gases released into the atmosphere. Some of these gases include water vapor, carbon dioxide, methane and ozone which trap heat rays produced by the sun from radiating back into outer space. As this occurs, the temperature of the planet rises and thus we get the term called “The Greenhouse Effect.” Additionally, ever since the Industrial Revolution there has been an increment in the emission of greenhouse gases (mainly carbon dioxide), in the proportion to industrial expansion (Osaka Prefecture, n.d, para. 2). This industrial expansion began roughly between the 18th and 19th centuries and as a result, these different...
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