Facts And Figures Of Global Economics

 CAUSES OF POVERTY In India, poverty is explained with reference to two sets of causes: one relating to underdevelopment of the economy and the other relating to unequal distribution of income. Let us discuss the causes of poverty in India in detail are as follows: Poverty with Reference to Underdevelopment of the Indian Economy Qu. What is the single most important reason of poverty in India? Ans. It is rapidly rising population that offsets/neutralises the gain of GDP growth. Underdevelopment of the Indian economy is the principal cause of poverty in India. Following factors support this observation: (1). Low Level of National Product: Net National Product (NNP) of India is miserably low compared to its size of population. Low per capita income is the obvious consequence. The per capita income of the country falls in the category of poorest countries, according to UNO norms. (2). Low Rate of Growth: Rate of growth of economy has been quite low during Five Year Plans in India. D...

INFRASTRUCTURE Infrastructure refers to the support system of economic and social development of a country. Imagine life in the absence of the means of transport and communication; imagine life in the absence of educational institutes, hospitals and nursing homes; imagine life in the absence of electricity or oil & diesel! Absence of these things would only drive us to the primitive age when production was just for subsistence. Production activity did not yield surplus for growth and development. Infrastructure refers to support system of economic and social development of a country without which economic growth and social development would only remain to be primitive. Economic and Social Infrastructure Infrastructure is broadly categorised as: economic infrastructure, and social infrastructure. (1). Economic Infrastructure: Economic infrastructure refers to such elements of support system (like power, transport and communication) which serve as a driving force for production acti...

 Poverty Poverty is the inability to fulfil the basic requirements of life. The minimum requirements include food, clothing, housing, education and health facilities. If these minimum needs are not fulfilled, man undergoes pain and suffering. There is loss of health and efficiency. Sickness and disabilities render him helpless in all walks of life. Generation after generation he lives in poverty, grows in poverty and dies in poverty. Poverty breeds or multiplies itself. Relative and Absolute Poverty: How are the Poor Classified? Relative poverty and absolute poverty are the two main modifications of poverty. Following is their brief description: (1) Relative Poverty: It refers to poverty across different classes, regions or countries. The country or class of people whose level of living is low is treated as poor or relatively poor in comparison to the nation or class of people having high level of living. Relative poverty is also interpreted in terms of inequality of income within...

I NTRODUCTION: FISCAL POLICY The macroeconomics perspective, the focus is on the aggregate economic activity of governments, say, aggregate expenditure taxes, transfers and issues of government debts and deficits and their effects on aggregate economic variables such as aggregate output, aggregate employment, inflation, global economic growth etc. These, in case, form the subject material of fiscal policy. The connotation of fiscal policy as a strategy for achieving certain socio economic purpose was not perceived or widely acknowledged before 1930 due to the faith in the fixed role of government advocated by the then prevailing laissez-faire approach. Great Depression and the consequent instabilities made policymakers support a more proactive role for governments in the economy. However, later on, markets fail to achieve optimal outcomes and the need for government intervention to combat those market failures. In latest times, especially after being portended by the global financial c...