Global Concern for the Environment – Rhetoric or Real

Considerable amount of concern has been expressed for environment in the recent time. Various summits, negotiations and conferences have been held at various levels with the widest possible participation. The question that arises is despite the sincere concern and the recognition of the causative factors for environmental degradation and consequently the climatic changes, why viable international framework / treaty is still elusive? Since environment involves extensive externalities an international binding agreement is essential. Still each country wants to do little while expects others to do a lot. The basic problem lies in the fact that environment is not the private good and therefore market can not offer solution. The issue demands a public policy intervention as well as cost. Fulfilling the obligations of any international agreement would require public policy interventions that would upset the current status-quo. Besides, capitalist countries are probably still to accept the reality of the limitations of the market mechanism in this regard. The paper seeks to trace the causes for the disagreements. The position that they take in the negotiations are traced to their domestic political and economic compulsions. Recent global crises that resulted from the lack or the absence of the regulations in the market economies may be treated a reminder to make them realize that the neo-classical wisdom may not be panacea for every evil

Global Financial Crises and Its Effect on India

There were arguments and counter arguments with regard to the impact on Indian economy of the global financial meltdown. The paper examines the economic scenario in India. The belief that Indian economy was adequately insulated from such global development has been found to be only partially correct. The crises affected the economy via dwindling foreign exchange reserves as significant amount of it had to be withdrawn from equity market by the foreign institutional investors. The phenomenon resulted in the adverse effect on various key macro variables which include balance of payments and employment. India’s slow pace of lessening further controls, albeit because of political compulsions, came in handy for the economy

Financing Human Development in India: Strategies and Options

India is ranked fairly high amongst the countries in terms of out of pocket expenditure by its citizens on health and education. India is ranked 134th on the Human Development Index (2011 ranking). Public expenditure on human development is given increasing emphasis but the desired results remain elusive as the expenditure on social services hardly benefits the needy because of leakages and wastage. Only well targeted expenditures coupled with sound implementation can benefit the poor. As indicated by Annual Status of Education Report (ASER) 2009, in terms of realization of objectives of Right to Education Act and consequently the increased public funding of primary education, the situation is grim. Similarly the ambitious program like National Rural Health Mission (NHRM) too failed to bring about any significant improvement in health indicators. This paper seeks to find what should be the different mechanisms for achieving these objectives or the country will be able to come out of this trap situation with the persuasion of the current strategy with certain time lag

Global Concern for the Environment – Rhetoric or Real

Considerable amount of concern has been expressed for environment in the recent time. Various summits, negotiations and conferences have been held at various levels with the widest possible participation. The question that arises is despite the sincere concern and the recognition of the causative factors for environmental degradation and consequently the climatic changes, why viable international framework / treaty is still elusive? Since environment involves extensive externalities an international binding agreement is essential. Still each country wants to do little while expects others to do a lot. The basic problem lies in the fact that environment is not the private good and therefore market can not offer solution. The issue demands a public policy intervention as well as cost. Fulfilling the obligations of any international agreement would require public policy interventions that would upset the current status-quo. Besides, capitalist countries are probably still to accept the reality of the limitations of the market mechanism in this regard. The paper seeks to trace the causes for the disagreements. The position that they take in the negotiations are traced to their domestic political and economic compulsions. Recent global crises that resulted from the lack or the absence of the regulations in the market economies may be treated a reminder to make them realize that the neo-classical wisdom may not be panacea for every evil

Financing Human Development in India: Strategies and Options

India is ranked fairly high amongst the countries in terms of out of pocket expenditure by its citizens on health and education. India is ranked 134th on the Human Development Index (2011 ranking). Public expenditure on human development is given increasing emphasis but the desired results remain elusive as the expenditure on social services hardly benefits the needy because of leakages and wastage. Only well targeted expenditures coupled with sound implementation can benefit the poor. As indicated by Annual Status of Education Report (ASER) 2009, in terms of realization of objectives of Right to Education Act and consequently the increased public funding of primary education, the situation is grim. Similarly the ambitious program like National Rural Health Mission (NHRM) too failed to bring about any significant improvement in health indicators. This paper seeks to find what should be the different mechanisms for achieving these objectives or the country will be able to come out of this trap situation with the persuasion of the current strategy with certain time lag

The Effect of Breastfeeding on the Cognitive and Language Development of Children Under 3 Years of Age: Results of Balochistan-Early Childhood Development Project

Background: Breastfeeding is known to be an important factor in the overall growth and development of children. Breastfeeding is thought to lead to enhance cognitive and language development of a child. However, this association has not yet been scientifically and statistically established. This study aimed to explore this association in children under 3 years of age.Methods: This was a secondary data-analysis of the baseline data of “Balochistan – Early Childhood Development Project”. The final sample comprised of 604 children less than 3 years of age. The children were selected by three-stage stratified random sampling from three districts of Balochistan province; Gwadar, Quetta and Qilla Saifullah. The data for the duration of breastfeeding was categorized as less than 6 months, from 6 months to 12 months and greater than 12 months. The age appropriate language and cognitive development of children was assessed through the CDA (Care for development Appraisal) tool. We applied multivariate logistic regression model for the analysis.Results: In unadjusted analysis, children breastfed for more than 12 months were at an advantage for cognitive and language development (cOR=2.91, cOR=2.8; p\u3c0.05; respectively). After adjusting for a range of co-variates this developmental advantage decreased to aOR=2.42 for cognition and aOR=2.44 for language respectively (p\u3e\u3c0.05).Conclusions: The duration for which the child is breast-fed is integral for his language and cognitive development. Based on our findings we recommend that breastfeeding should be promoted for more than 12 months to bring out the maximum benefit in the language and cognitive development of a child

The Dynamics of Fiscal Federalism in India and the Global Financial crises

India's fiscal federalism, though asymmetric in nature has so far worked well to keep the federation going. The asymmetry is both vertical as well as horizontal. Former is in terms of the disproportionate allocations of revenue sources and the responsibilities to be discharged to the Central and State governments and the latter, in terms of fiscal capacity of the States themselves. In order to make up for the inadequacy of revenue there is well elaborate mechanism of fiscal transfers from Centre to States. The channels of these transfers are statutory as well as non-statutory. This creates a problem that while States might be getting resources but are deprived of the fiscal instruments to pursue public policies. But the division of fiscal function is well in tune with the principles suggested by Musgrave in late fifties according to which 'economic stabilization' and 'distribution' to be assigned to Centre government while 'allocation' to the States. On and off there have been the conflicts but political economic factors always played a role in their resolutions. Problem gets compounded by the fact that since monetary initiatives are with the Centre it can - in fact it does - use them to counter balance any fiscal profligacy committed on account of political expediency (fiscal measures are politically more sensitive). There is empirical evidence that fiscal transfers could not succeed in bringing about revenue equalization or augmenting the fiscal capacity of States while there have been instances of Centre transgressing into the fiscal space of the States. Responding to the global financial crises and resultant economic slow down Centre came out with stimulus packages by putting a pause on the requirements of Fiscal Responsibility Act. While States were also permitted to defer the same to meet the challenges only a handful of States could come out with any package. Proposed study seeks to analyze the dynamics of federalism during the recent crises

Neoclassical Versus Keynesian Approach to Public Policy – The Need for Synthesis

The global economic recession following the financial crises once again revived the debate over the efficacy of Keynesian solution to deal with the crises. Most of the country went in to offer bailout packages from the public budget which could be the reminiscent of such policies adopted earlier – New Deal of President Roosevelt of US is case in point. Keynes was the first person to provide theoretical justification for the deficits in public budget to raise the aggregate spending level in the economy which, in turn, would raise the employment level. Keynesian advocacy would have remained unheeded had the crises of 1930s not occurred. The crises offered the opportunity to put the Keynesian solution to test. The approached worked. But by the end of the decade of 70s this approach was abandoned and neoclassicism not only resurfaced but became the bases for the policy not only for nations but for multilateral financial institutions as well. It was the crises again which brought back the Keynesian wisdom to relevance. The present paper assesses the two approaches in the historical context to find if synthesis between neoclassical and Keynesian approach is possible to make the public policy more effective

The Dynamics of Fiscal Federalism in India and the Global Financial crises

India's fiscal federalism, though asymmetric in nature has so far worked well to keep the federation going. The asymmetry is both vertical as well as horizontal. Former is in terms of the disproportionate allocations of revenue sources and the responsibilities to be discharged to the Central and State governments and the latter, in terms of fiscal capacity of the States themselves. In order to make up for the inadequacy of revenue there is well elaborate mechanism of fiscal transfers from Centre to States. The channels of these transfers are statutory as well as non-statutory. This creates a problem that while States might be getting resources but are deprived of the fiscal instruments to pursue public policies. But the division of fiscal function is well in tune with the principles suggested by Musgrave in late fifties according to which 'economic stabilization' and 'distribution' to be assigned to Centre government while 'allocation' to the States. On and off there have been the conflicts but political economic factors always played a role in their resolutions. Problem gets compounded by the fact that since monetary initiatives are with the Centre it can - in fact it does - use them to counter balance any fiscal profligacy committed on account of political expediency (fiscal measures are politically more sensitive). There is empirical evidence that fiscal transfers could not succeed in bringing about revenue equalization or augmenting the fiscal capacity of States while there have been instances of Centre transgressing into the fiscal space of the States. Responding to the global financial crises and resultant economic slow down Centre came out with stimulus packages by putting a pause on the requirements of Fiscal Responsibility Act. While States were also permitted to defer the same to meet the challenges only a handful of States could come out with any package. Proposed study seeks to analyze the dynamics of federalism during the recent crises

Neoclassical Versus Keynesian Approach to Public Policy – The Need for Synthesis

The global economic recession following the financial crises once again revived the debate over the efficacy of Keynesian solution to deal with the crises. Most of the country went in to offer bailout packages from the public budget which could be the reminiscent of such policies adopted earlier – New Deal of President Roosevelt of US is case in point. Keynes was the first person to provide theoretical justification for the deficits in public budget to raise the aggregate spending level in the economy which, in turn, would raise the employment level. Keynesian advocacy would have remained unheeded had the crises of 1930s not occurred. The crises offered the opportunity to put the Keynesian solution to test. The approached worked. But by the end of the decade of 70s this approach was abandoned and neoclassicism not only resurfaced but became the bases for the policy not only for nations but for multilateral financial institutions as well. It was the crises again which brought back the Keynesian wisdom to relevance. The present paper assesses the two approaches in the historical context to find if synthesis between neoclassical and Keynesian approach is possible to make the public policy more effective