Friday, 15 May 2015

BANK PO/CLERK 2015:- ECONOMICS



National Income


National Statistical Commission (NSC)
The government of India ordered the setting up of a permanent National Statistic commission? (NSC) on 1st June, 2005 on the recommendation of the C. Rangarajan Commission. The national Statically Commission assumed charge on 12th July, 2006. Prof.Suresh tendulkar became the first chairperson of the NSC
Constitution of NSC
1.       A part- time chairperson who will be an eminent statistician or social scientist.
2.       Four part- time members, one each from the following fields of specialization and experience in
(i)                  Economics statistics in such areas as agriculture industry, infrastructure, trade or infancies.
(ii)                Social and environment statistics in such areas as population, health education, labour and employment or environment.
(iii)               Statistical operations in such areas as censuses, survey statistical information system or information technology.
(iv)              National accounts, statistical modeling or state statistical systems.
3.       The Secretary, Planning Commission as ex-officio member.

Concept in the National Income
Gross Domestic Product (GDP)
It is the sum total of the value of all final commodities and service produce within the geographical boundary of a country during a given period of time the sum total is to be calculated by counting the values without duplication.

Gross National Product (GNP)
GNP= GDP +Net Factor Income Abroad (NFIA)
        = GDP + export – Import
Note: Since India has more imports than exports, its GNP figure is less than that of GDP.

Net National Product (NNP)
NNP = GNP - Depreciation
         = GNP - capital Consumption Allowance
         = GDP +NFIA – Depreciation
         = NDP+NFIA

Net Domestic product (NDP)
                      NDP= GDP – Depreciation.
Note: Depreciation is also known as capital Consumption allowance.

Calculation of National income Aggregates at Market Price and factor Cost.
1.       GDP at market price ( ) ( Contribution of all sectors at market price)
2.       GDP at factor Cost ( ) =  - net indirect taxes +subsidy
3.       NDP at market price ) =  – depreciation
4.        =  - net indirect taxes + subsidy
5.        = + net factor income from abroad
6.        = - net indirect taxes + subsidy
 Per Capita Income
In India,  is taken as national income of India. But  coneals the population effect over the economy, hence concept of per capita income is evolved.
Per capita income = national income/ total population

Ø Do you know?
A committee was set up under the chairmanship of C.Rangarajan to improve Statistical database of India.

Methods to estimate National Income
(i)                  Production Method: net value of final goods and service produced in country during a year is taken into consideration
(ii)                Income Method:  total of net income earned by working people in different sectors and commercial enterprises
Total income = total rent + total wages +total interest =total profit
(iii)             Consumption method: also called as expenditure method. It is the addition of total consumption and total savings.
POVERTY
·         The Planning Commission is a nodal agency in the Government of India for estimation of poverty at national and state levels.
·         Since, March 1997 it has been using the Expert Group Method (expert group on estimation of proportion and number of poor ) to estimate poverty.
·         According to this method the estimates of poverty are made from the large sample survey on household consumer expenditure conducted by the national Sample Survey Organization (NSSO) of the ministry of Statistics and Programme Implementation.
·         Using this methodology the Planning Commission, in the past, has released poverty estimates for the year 1973-74, 1977-78, 1983, 1987-88, 1993-94
·         And 1999- 2000. While releasing the estimates of poverty for 1999-2000, it had been noted that these estimates were not strictly comparable with the estimates for the previous years.

Tendulkar Committee Report

·         SD Tendulkar, the former chairman of prime minister’s economic advisory council has prepared a report, according to which India has 37.2% population below poverty line (BPL).
·         According to the Tendulkar committee, 41.8% of people in rural area live below the poverty line as against 25.7% of urban residents.
·         The committee as also revised the poverty line in terms of money spends per person per month.
·         From Rs. 356.30 a month, this has increase to Rs. 446.68 in rural areas.
·         In urban areas it has risen from Rs. 538.60 to 578.80.
·         As per the record the most poor state are Orisha (57.2% ) Bihar  (54.4%) Chhattisgarh (49.4%), Madhya Pradesh (48.6%), Jharkhand 45.3% and Uttar Pradesh (40.9%) 
·         According to planning commission of India 27.5% of the population is under BPL as per the poverty estimates for the year 2004-05.

Human Development Resource (HDR)

·         HDR is brought up by the UNDP at every calendar year whereas the world development report is broad by the World Bank at every financial year.

·         HDR is based on human development index which was for the first time given by Mahbub –ul-haq of Pakistan in 1990. In partnership with Indian economist Amartiya Sen. the first HDR was published in 1990.

            HDR brings various indices:

1.       HDI (Human Development Index) – introduce in HDR 1990.
2.       GDI (General Related Development Index) - introduce in HDR 1995.
3.       GEM (General Empowerment Measures) – introduce in HDR in 1995.
4.       HPI (Human Poverty Index) - introduce in 1997.
5.       TAI (Technology Achievement Index) - introduce in HDR in1997.


HDR Indices

The HDI measures average achievement in a country in three basic dimension of human development.

1.       A long and healthy life as measures by life expectancy at birth
2.       Knowledge, as measures by the adult literacy rate (with two-third weight) and combined primary, secondary and tertiary gross enrolment ratio.
3.       A decent standard of living, as measures by Gross Domestic product (GDP) per capita at purchasing power parity  (PPP) in USD (US Dollar)
·         Human poverty is primarily a denial of choices and opportunities for living in a life once have reason to value. Lake of income is therefore far to narrow to serve as a holistic indicator
HPI-1 –human poverty index for developing countries
                                        HPI-2 – human poverty index for development countries (in addition to three                                                                   dimension in HPI-1, it also include social exclusion

·         GDI is a composite index that measures human development in same dimension as the HDI while adjusting for gender in equality in that basic dimension.

                                              
                    HDR Themes /Titles
HDR-2010
20th Anniversary Edition
HDR-2009
Overcoming barriers: Human Mobility & Development
HDR-2007/08
Fighting climate change: Human solidity in divided world.
HDR-2006
Beyond Scarcity: Power Poverty and the global water crisis
HDR-2005
International co-operation at a cross roads: Aid, trade and security in an unequal world
HDR-2004
Culture liberty in today’s diverse world
HDR-1990
Concept and measurement of human development

Important Rankings in HDR 2012
Rank
Country
HDI 2012
1
Norway

2
Australia

3
US

4
 Netherlands

5
Ireland

6
Germany

7
New Zealand

8
Ireland

9
Switzerland

10
Japan

11
Canada

136
India


Salient features of HDR 2009
All countries included in the HDI are classified in to one of four clusters of achievement in human development.
1.       Very high human development (HDI of 0.9 and above )
2.       High human development (HDI of 0.8 and 0.899)
3.       Medium human development (HDI of 0.5 and 0.799)
4.       Low human development (HDI of less than 0.5)
In HDR 2009, the HDI for India is 0.612 which gives the country 134 out of 182 countries. Thus India falls under the category of medium human development.

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