Posts Tagged ‘Politics’

Impact of Structural Changes on Economy

First of all, a distinction should be made between cyclical and structural changes.

Cyclical changes arise as a result of the economy progressing through the various stages of its business cycle.

Structural changes, on the contrary, arise as a result of a major shift in how the economy functions.

In particular, there are four main types of structural shifts that may impact on economy:

1. Demographics:

The economy is largely influenced by the spending power of its population.
Hence, the development of the economy has been heavily influenced by the spending habits of this generation.

2. Technology:

The same innovation in technology may simultaneously give birth to a new industry and severely impair an existing one.

Collectively, if new technology improves productivity levels, then the economy as a whole will function more efficiently.

3. Politics:

New governments may mean different fiscal policies for the foreseeable future. This may boost certain industries while damaging others.

4. Regulations:

New regulations may make certain industries less competitive, while others may become more competitive.

Why India will not become a superpower?

Why India will not become a superpower?

1. Population:

India’s increasing population is a big hindrance in India’s becoming a Super power. Rising population has affected the quality of life of the people for sure as imparting access of basic amenities and education to bigger population becomes more difficult. In the last several decades, fertility control policies in India have failed to promote a sustainable solution to the problem of overpopulation. India needs to take strict measures to counter the prevailing birth rate in the country.

2. Corruption:

India is one of the most corrupt countries on the world map. Corruption in India has assumed such large proportions that public have come to believe that it is impossible to get rid of this malaise.

We need variety of strategies to fight corruption, ranging from the simplification of rules and procedures and the application of information technology to specific steps such as trapping corrupt public servants. Open and transparent political systems are must at all levels.

3. Decline of public institutions:

key institutions like —politics, universities, judiciary, bureaucracy, police etc. are witnessing deterioration on the matter of accountability and productivity. In India, average incomes have risen fourfold and yet public institutions have not improved. Indian policy makers need to come up with number of public institutional reforms steps to counter this malaise.

4. Naxal and Maoist menace :

Extremism in the form of the Naxalite movement has to be checked. Stern and sincere steps should be taken to rein in the menace.

Rehabilitation programme has to be launched to bring the Naxalites into the mainstream and at the same time police force should be given modern training and equipments to counter ultras.

5. Social inequality and Unequal distribution of income across society:

India needs to address growing unequal income distribution and need to narrow the gap between the poor and rich . This disparity has only increased over the years. Economic policy makers need to work on this. The present global financial crisis is bound to make matters worse unless long-term structural reforms are adopted.

6. Environmental degradation:

Economic development without environmental considerations can cause serious environmental damage in turn impairing the quality of life of present and future generations. The degradation is impacting people’s lives in very real ways, whether in the form of massive depletion of underground aquifers, chemical contamination of soil, death of rivers, loss of species etc.

7. Religious extremism :

Current trends shows Religious extremism has risen sharply in Indian society and if not taken care of, they have potential to completely destroy the secular and democratic fabric of the nation.

Religious riots, communal clashes and bombings in every nook and corner of the country are hindrance in the set up of secular fabric, scientific advancements, technological breakthroughs in the country. Matured democracy and vibrant, fast-growing economy like INDIA have to deal with this issue ASAP.

8. Media Apathy :

Indian media has failed to cover all relevant and real issues revolving around our society. Media needs to come up with the coverage of real and main issues like social inequality and environment degradations. Media has to play an active role in spreading awareness among masses towards major issues of the society.

9. Political chaos :

The political fragmentation across central and regional levels makes it very difficult to forge sustainable long term policies in the realm of health, education, infrastructure etc.

10. Border conflicts:

India’s unresolved border disputes, especially in Kashmir and the North East (Nagaland and Manipur) which indicates that there are parts of India that are not comfortable with being part of India. India needs to take proactive steps to resolve the conflict and fasten the development in these disturbed territories.