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Monday, 19 August 2013

some basic economics for TNPSC GROUP4

Population Policy
India was the first developing country to adopt a population policy
and to launch a nationwide family planning programme in 1952. The main
objective of the population policy is to ensure that there is reasonable gap
between the fall of death and birth rates. Population policy refers to the
efforts made by any Government to control and change the population
structure.

National Population Policy 2000
The National Population Policy (NPP) 2000 has the immediate
objective of addressing the unmet needs of contraception, health
infrastructure, health personnel and integrating service delivery for basic
reproductive and child health care.
It also lays emphasis on the medium term objective of bringing total
fertility rates to replacement level by 2010. A Total Fertility Rate of 2.1 is
known as replacement level fertility.
The policy’s long term objective is to stabilise population by 2045.
A National Commission on population presided over by the Prime
Minister, Chief Ministers of all States and other dignitaries as the members
has been constituted to oversee and review the policy (NPP-2000)
implementation.
Similar to the National Commission, State Level Commissions presided
over by the respective State Chief Ministers have also been set up with the
same objective of ensuring implementation of the policies.
Programmes to eliminate poverty
1. Land Reforms
Land reforms legislation has been passed by the state governments,
which aim at improving the economic conditions of agricultural landless
labourers. For instance, with the abolition of the Zamindari system, the
exploitation associated with the system has been removed. Tenancy Laws
have been passed in most of the states for protecting the interests of the
tenants and helping them to acquire possession over the lands they cultivate.
Every state has passed the necessary legislation fixing ceiling on agricultural
holdings by which the maximum amount of land which a person can hold has
been fixed by law. The surplus lands thus acquired were to be distributed to
the landless labourers and small peasants.
2. Jawahar Gram Samridhi Yojana (JGSY)
It was introduced in April 1999 as a successor to Jawahar Rozgar Yojana
on a cost sharing basis of 75 : 25 between the Union and States.
3. National Social Assistance Programme (NSAP)
It was launched on August 15, 1995 to provide social assistance benefits
to poor households affected by old age, death of primary bread winner or
need for maternity care.
4. Employment Assurance Scheme (EAS)
It was started on October 2, 1993 in 1778 backward blocks in drought
prone, desert, tribal and hill areas. It was expanded to cover all the 5,488
rural blocks of the country. It gave wage employment to the rural poor. In

September 2001, it was merged into new Sampoorna Gramin Rozgar Yojana
along with Jawahar Gram Samridhi Yojana.
5. Pradhan Mantri Gramodaya Yojana (PMGY)
It was introduced in the Budget for 2000-2001 with an allocation of Rs.
5,000 crore. Its focus is on health, primary education, drinking water, housing
and rural roads.
Common Property Rights in grazing lands, wastelands, forests and
water resources were made available to the rural people in the past. They
have been cancelled in the recent past due to commercialisation and
privatisation of these rural community resources in the country.
6. Swarna Jayanti Shahari Rozgar Yojana (SJSRY)
Urban self-employment and urban wage-employment are the two
special schemes under it. It substituted in December 1997 various
programmes operated earlier for urban poverty alleviation. It is funded on
75: 25 basis between the Union and the States. The expenditure under this
scheme was only Rs. 45.5 crore at the revised stage. It was Rs. 39.21 crore
in 2001-02 and an allocation of Rs. 105 crore was provided for 2002-03
(Economic Survey, 2002-03, p.217).
7. Integrated Rural Development Programme (IRDP)
The concept of an Integrated Rural Development Programme was
first proposed in the central budget for 1976-77, and a beginning was made
in this regard. This programme was intended to assist rural population to
derive economic benefits from the development of assets of each area.
The programme with some modifications was introduced on an
expanded scale in 1978-79, beginning with 2,300 blocks, of which 2000
were under common coverage with SFDA, DPAP and CADP, with another
300 blocks added up during 1979-80. Its coverage was extended to all the
blocks of the country since October 2, 1980.

Besides the smaller and marginal farmers, this programme was more
specific in regard to agricultural workers and landless labourers, and
additionally brought within its purview rural artisans also. The programme
emphasised the family rather than the individual approach in the identification
of the beneficiaries.

National income: National income is a measure of the total value of the goods and services
(output) produced by an economy over a period of time (normally a year). It
is also a measure of the income flown from production, and/or the sum total
of all the spending involved for the production of output.

Gross National Product
Gross National Product (GNP) is the total value of output (goods and
services) produced and income received in a year by domestic residents of
a country. It includes profits earned from capital invested abroad.

Gros s Domestic Product
Gross Domestic Product (GDP) is the total value of output (goods
and services) produced by the factors of production located within the
country’s boundary in a year. The factors of production may be owned by
any one – citizens or foreigners.
GNP – Net income earned from abroad = GDP
Thus, GDP measures income from where it is earned rather than who
owns the factors of production.

Net National Product
Net National Product (NNP) is arrived at by making some
adjustment, with regard to depreciation, in GNP. As noted above, GNP is
the total value of output produced and income received in a year by domestic
residents of a country. Over this one year period, the available plant and
machinery (capital) will wear and tear and get condemned. Such decline in
the capital assets due to wear and tear is measured as ‘capital depreciation’.
NNP is arrived at by deducting value of such depreciation from GNP.
That is GNP – Depreciation = NNP

Net Domestic Product
Net domestic product (NDP) is also arrived from GDP by making
adjustment with regard to depreciation in the same way described above.

(NDP is calculated by deducting depreciation from GDP).
GDP – Depreciation = NDP

Per Capita Income
Per capita income (or) output per person is an indicator to show
the living standards of people in a country. If real PCI increases, it is
considered to be an improvement in the overall living standard of people.
PCI is arrived at by dividing the GDP by the size of population. It is also
arrived by making some adjustment with GDP.

GDP and GNP
While GDP indicates productive capacity of an economy, GNP is a
crude indicator for living standard. The significance of the distinction between
GNP and GDP depends on the nature of a particular economy. For instance,
if a country has more non-resident inflows and produces a considerable
portion of its output by multinational corporations (i.e. with the help of external
factors of production), its GNP will be higher than GDP. Otherwise the
distinction will be negligible.
Many countries have foreign firms. In the case of US Ford Motors in
Chennai, the income from the car factory would be counted as Indian GDP
and not as US GDP. But the amount of profit the company sends to US will
be added to their GNP. Similarly, our GNP can be arrived by adding to our
GDP the net factor income receipts from abroad for the factor inputs owned
by Indians. That is, the non-resident Indians income will be added to GDP
to arrive at our GNP.