Gender Mainstreaming in Development:

First World Conference on Women

Introduction
It held between 19 June and 2 July 1975 in the Mexico City. Out of 133 delegation leaders, 113 of them were
women. It was the first conference held by UN to focus solely on women's issues. It was a way for the UN to
address and hopefully combat for women's right all over the world. It was an international open dialogue
between global leaders around the world about the gender inequality and the need to develop the course of
action for the advancement of women.
Official Conference:
There was 2 committee formed in this conference:
1. First Committee
It discussed the World Plan of Action. It evaluated 6 draft resolutions which dealt with- research and training,
international cooperation, women's status, role of UN in implementation of the plan, women's health,
participation of women in future meetings of UN.
2. Second Committee
It evaluated the current trends and obstacles in the roles of men and women to achieve parity in rights,
opportunities and responsibilities. It recognized the de-jure and de-facto status of women.
Objectives of the First World Conference on Women
1. Full gender equality and the elimination of gender discrimination.
2. Integration and full participation of women in development.
3. Increase contribution of women in strengthening world peace.
Key Outcomes:
1. World Plan of Action and Declaration of Mexico on the Equality of Women and their contributions to
development.
2. The conference made education, employment, family planning, health and nutrition and housing as key focal
points to achieve the equality.
3. It not only encouraged member countries to establish/ develop policies which would lead to the development
of women's lives but also led to the establishment of UN Decade for Women as a means to focus these policies
as well as establishing series of conferences to follow-up.
4. Establishment of International Research and Training Institute for the Advancement of Women (INSTRAW)
and United Nations Development Fund for Women (UNIFEM).
5. Understood the importance of sex-disaggregated data.
Second World Conference on Women:
Introduction:
It held between 14 and 30 July 1980 in Copenhagen as the mid-decade assessment of progress and failure in
implementing the goals established by the World Plan of Action. There were 1500 delegates participated in this
conference.
There were some barriers for women to exercise their rights like:
a) Lack of sufficient involvement of men in improving women's role in the society.
b) Insufficient political will.
c) Lack of recognition of the value of women's contribution to the society.
d) Lack of attention to the particular needs of women in planning.
e) Shortage of women in decision-making process.
f) Insufficient services such as co-operatives, day care center and credit facilities to support the role of
women in national life.
g) Overall lack of necessary financial resources.
h) Lack of awareness among women about the opportunities available to them.
i) Jobs which were available to women were insecure, low paid and sex-stereotyped
Official Conference:
There was 2 committee:
1. First Committee
It discussed the progress and obstacles in attaining the World Plan of Action and the proposal for the
World Programme of Action.
2. Second Committee
It noted that without change in socio-economic systems, equality for women in regional systems were
needed to be fully integrated to allow women's participation.
Key Outcomes:
1. Signing of CEDAW
2. Included the sections to create women's bureau or agencies, defined the roles of NGO and grass root
organizations and established target issues like child care, rural women unemployment
3. The changes were devoted to ensure equal access to education, employment opportunities and
adequate health care.
Third World Conference on Women:
Introduction:
It took place between 15 and 26 July 1985 in Nairobi, Kenya as the end assessment of progress and failure in
implementing the goals established by the World Plan of Action. It was attended by more than 15,000 people.
Official Conference:
It was divided into two committee:
1. First Committee
It discussed the first 3 chapters of the draft Forward-looking Strategies for the advancement of women
2. Second Committee
It discussed the remaining chapters of the strategies.
Key Outcomes:
1. Adaptation of Forward looking Strategies for the Advancement of women which included the topics like
agriculture, communications, legal and constitution issues, education, employment, women participation, etc.
2. The major themes: development, equality and peace were retained.
3. Three basic categories were established to measure the progress achieved:
a. Constitutional and legal measures
b. Equality in social participation
c. Equality in political participation and decision making
4. It recognized gender equality not as isolated issues but as all areas of human activity.
5. For the first time, lesbian rights were introduced.
Fourth World Conference
Introduction:
It held during 4-15 September 1995 in Beijing, China. There were 17000 participants. At this conference,
governments from around the world agreed on a comprehensive plan to achieve global legal equality known as
the Beijing Platform for Action (BPFA).
Mission statement of BPFA
1. The Platform for Action is an agenda for women's empowerment. It aims at accelerating the implementation
of the Nairobi Forward-looking Strategies for the Advancement of Women and at removing all the obstacles to
women's active participation in all spheres of public and private life through a full and equal share in economic,
social, cultural and political decision-making. This means that the principle of shared power and responsibility
should be established between women and men at home, in the workplace and in the wider national and
international communities. Equality between women and men is a matter of human rights and a condition for
social justice and is also a necessary and fundamental prerequisite for equality, development and peace. A
transformed partnership based on equality between women and men is a condition for people-centred
sustainable development. A sustained and long-term commitment is essential, so that women and men can
work together for themselves, for their children and for society to meet the challenges of the twenty-first
century.
2. The Platform for Action reaffirms the fundamental principle set forth in the Vienna Declaration and
Programme of Action, adopted by the World Conference on Human Rights, that the human rights of women and
of the girl child are an inalienable, integral and indivisible part of universal human rights. As an agenda for
action, the Platform seeks to promote and protect the full enjoyment of all human rights and the fundamental
freedoms of all women throughout their life cycle.
3. The Platform for Action emphasizes that women share common concerns that can be addressed only by
working together and in partnership with men towards the common goal of gender equality around the world.
It respects and values the full diversity of women's situations and conditions and recognizes that some women
face particular barriers to their empowerment.
4. The Platform for Action requires immediate and concerted action by all to create a peaceful, just and humane
world based on human rights and fundamental freedoms, including the principle of equality for all people of all
ages and from all walks of life, and to this end, recognizes that broad- based and sustained economic growth in
the context of sustainable development is necessary to sustain social development and social justice.
5. The success of the Platform for Action will require a strong commitment on the part of Governments,
international organizations and institutions at all levels. It will also require adequate mobilization of resources at
the national and international levels as well as new and additional resources to the developing countries from
all available funding mechanisms, including multilateral, bilateral and private sources for the advancement of
women; financial resources to strengthen the capacity of national, subregional, regional and international
institutions; a commitment to equal rights, equal responsibilities and equal opportunities and to the equal
participation of women and men in all national, regional and international bodies and policy- making processes;
and the establishment or strengthening of mechanisms at all levels for accountability to the world's women.
Twelve Critical Areas of Concern:
Women and poverty .

 Strategic objective A.1. Review, adopt and maintain macroeconomic policies and development strategies
that address the needs and efforts of women in poverty. ..
 Strategic objective A.2. Revise laws and administrative practices to ensure women's equal rights and
access to economic resources. ..
 Strategic objective A.3. Provide women with access to savings and credit mechanisms and institutions. ..
 Strategic objective A.4. Develop gender-based methodologies and conduct research to address
the feminization of poverty. ..
Education and training of women .

 Strategic objective B.1. Ensure equal access to education. ..

 Strategic objective B.2. Eradicate illiteracy among women. ..
 Strategic objective B.3. Improve women's access to vocational training, science and technology, and
continuing education. ..
 Strategic objective B.4. Develop non-discriminatory education and training. .
 Strategic objective B.5. Allocate sufficient resources for and monitor the implementation of educational
reforms. ..
 Strategic objective B.6. Promote lifelong education and training for girls and women. ..
Women and health .

 Strategic objective C.1. Increase women's access throughout the life cycle to appropriate, affordable and
quality health care, information and related services. ..
 Strategic objective C.2. Strengthen preventive programmes that promote women's health. ..
 Strategic objective C.3. Undertake gender-sensitive initiatives that address sexually transmitted diseases,
HIV/AIDS, and sexual and reproductive health issues. ..
 Strategic objective C.4. Promote research and disseminate information on women's health. .
 Strategic objective C.5. Increase resources and monitor follow-up for women's health. ..
Violence against women .

 Strategic objective D.1. Take integrated measures to prevent and eliminate violence against women. ..
 Strategic objective D.2. Study the causes and consequences of violence against women and the
effectiveness of preventive measures. ..
 Strategic objective D.3. Eliminate trafficking in women and assist victims of violence due to prostitution
and trafficking. ..
Women and armed conflict .

 Strategic objective E.1. Increase the participation of women in conflict resolution at decision-making

levels and protect women living in situations of armed and other conflicts or under foreign occupation. ..
 Strategic objective E.2. Reduce excessive military expenditures and control the availability of
armaments. ..
 Strategic objective E.3. Promote non-violent forms of conflict resolution and reduce the incidence of
human rights abuse in conflict situations. ..
 Strategic objective E.4. Promote women's contribution to fostering a culture of peace. ..
 Strategic objective E.5. Provide protection, assistance and training to refugee women, other displaced
women in need of international protection and internally displaced women. ..
 Strategic objective E.6. Provide assistance to the women of the colonies and non-self-governing
territories. ..
Women and the economy .

 Strategic objective F.1. Promote women's economic rights and independence, including access to
employment, appropriate working conditions and control over economic resources. ..
 Strategic objective F.2. Facilitate women's equal access to resources, employment, markets and trade. ..
 Strategic objective F.3. Provide business services, training and access to markets, information and
technology, particularly to low-income women. ..
 Strategic objective F.4. Strengthen women's economic capacity and commercial networks. ..
 Strategic objective F.5. Eliminate occupational segregation and all forms of employment discrimination. ..
 Strategic objective F.6. Promote harmonization of work and family responsibilities for women and men. ..
Women in power and decision-making .

 Strategic objective G.1. Take measures to ensure women's equal access to and full participation in power
structures and decision-making. ..
 Strategic objective G.2. Increase women's capacity to participate in decision-making and leadership. ..
Institutional mechanism for the advancement of women .

 Strategic objective H.1. Create or strengthen national machineries and other governmental bodies. ..
 Strategic objective H.2. Integrate gender perspectives in legislation, public policies, programmes and
projects. ..
 Strategic objective H.3. Generate and disseminate gender-disaggregated data and information for
planning and evaluation ..
Human rights of women .

 Strategic objective I.1. Promote and protect the human rights of women, through the full implementation
of all human rights instruments, especially the Convention on the Elimination of All Forms of Discrimination
against Women. ..
 Strategic objective I.2. Ensure equality and non-discrimination under the law and in practice. ..
 Strategic objective I.3. Achieve legal literacy. ..
Women and the media .

 Strategic objective J.1. Increase the participation and access of women to expression and decision-making
in and through the media and new technologies of communication. ..
 Strategic objective J.2. Promote a balanced and non-stereotyped portrayal of women in the media. ..
Women and the environment .

 Strategic objective K.1. Involve women actively in environmental decision-making at all levels. ..

 Strategic objective K.2. Integrate gender concerns and perspectives in policies and programmes for
sustainable development. ..
 Strategic objective K.3. Strengthen or establish mechanisms at the national, regional, and international
levels to assess the impact of development and environmental policies on women. ..
The girl-child .

 Strategic objective L.1. Eliminate all forms of discrimination against the girl-child. ..

 Strategic objective L.2. Eliminate negative cultural attitudes and practices against girls. ..
 Strategic objective L.3. Promote and protect the rights of the girl-child and increase awareness of her
needs and potential. ..
 Strategic objective L.4. Eliminate discrimination against girls in education, skills development and training.
.
 Strategic objective L.5. Eliminate discrimination against girls in health and nutrition. ..
 Strategic objective L.6. Eliminate the economic exploitation of child labour and protect young girls at
work. ..
 Strategic objective L.7. Eradicate violence against the girl-child. ..
 Strategic objective L.8. Promote the girl-child's awareness of and participation in social, economic and
political life. ..
 Strategic objective L.9. Strengthen the role of the family in improving the status of the girl-child. ..
Adopted from: https://en.wikipedia.org/wiki/World_Conference_on_Women,_1995
Gender Responsive Budgeting (GRB)
Introduction:
It means preparing budgeting or analyzing them from a gender perspective. It is a strategy of achieving gender
equality between men and women by focusing on how public resources are allocated and spent. It is not
creating separate budget for women. It seeks that need and interests of women and men from different groups
are addressed in the government projects.
Steps of Encompassing GRB
1. Analysis of budgets and policies from a gender perspective.
2. Linking gender budgeting to overall gender equality objectives.
3. Restructuring budget and amending policies.
4. Integrating gender perspectives throughout the budget cycles.
5. Monitoring and evaluation of achievements.
6. Transparency of the budget process.
7. Participation in the budget process.
Stages for Gender Budgeting:
Stage 1: Administration must prepare budget draft.
Stage 2: Parliament debates on the budget.
Stage 3: Budget implementation should be monitored.
Stage 4: Budget implementation should be reported and accounted.
Significance of GRB
 1. It helps to maintain gender equality.
2. It improve the allocation of resources to women.
3. It leads to good governance by enhancing transparency and accountability.
4. It addresses the gaps between gender equality and allocation of resources.
5. It improves the budgetary performance and optimizes the use of limited resources.
6. It enhances economic efficiency and contributes to broader goal of social justice.
7. It monitors the success of policy goals.
8. It support gender mainstreaming in macroeconomics.
Actors of GRB:
All Government Ministries and Departments, Local Government Bodies, National Women's Machineries, Civil
Society Organization, Academics, Parliamentarian and Media
Quantitative Weightage of GRB:
Qualitative Indicators Quantitative Weightage
1. Increase in women's efficiency/capacity 20%
2.Women's participation in plan/programme implementation and 20%
formulation
3. Women's share of the benefit 20%
4. Support for women's employment and income generation. 20%

5. Qualitative improvement in women's time use and reduction of workload 20%

Total 100%
1. If the quantitative weightage aggregate is 50% or > 50%, it is directly gender responsive.
 Quantitative
Weightage
Qualitative Indicators Condition
1. Increase in women's If capacity development were to happen 10%
efficiency/capacity equally ( 50:50) for women and men.
2.Women's participation in If plan/programme formulation and 20%
plan/programme implementation and implementation were to engage 100%
formulation women.
3. Women's share of the benefit If 60% of the benefit were to accurate to 12%
women.
4. Support for women's employment If only 25% of employment opportunity 5%
and income generation. were to go for women.
5. Qualitative improvement in If there is no qualitative improvement in 0
women's time use and reduction of women's time use.
workload
Total Indirectly Gender Responsive 47%
2. If the quantitative weightage is 20% < > 50% then it is indirectly gender responsive.
Example:
Gender Responsive Budgeting in Nepal
Key Arrangements of GRB in Nepal
Gender Responsive Budget Committee

 
 Name Position Office

Mr. Nirmal Hari Adhikari,

Joint Secretary Coordinator Budget and Program Division, Ministry of Finance

Mr. Pradashani Kumari

Shah, Under Secretary Member National Planning Commission

Under Secretary Member Ministry of Women, Children and Social Welfare

International Economic Cooperation Coordination

Under Secretary Member Division

 Ministry of Federal Affairs and Local

Under Secretary Member Development

Mr. Jib Nath Pokhrel,

Deputy Financial
Comptroller General  Member Financial Comptroller General Office

Ms. Gitanjali Singh Member UN Women

Mr. Chandra Kumar Member

Shrestha, Under Secretary Secretary Budget and Program Division, Ministry of Finance
 
Adopted from: https://mof.gov.np/en/gender-responsive-budget-76.html
GRB system was introduced in Nepal from 2007/08
a. Policy Initiatives
Constitution of Nepal has made several provisions for gender equality, inclusion and women's empowerment .
National plan document (14th periodic plan) has mentioned the working policy to increase the allocation of GRB
in central budget and institutionalizing to the local level for achieving gender equality and women
empowerment. Every year the total national budget is classified into directly responsive, indirectly responsive
and neutral on the basis of gender responsiveness. Establishment of Budget Formulation Guideline of MOF,
Gender Responsive Budget formulation guidelines 2012 and Gender Responsive Budget Localization Strategy
2015 . Checklist of indicators and sub-indicators for gender analysis of programs and budget . MOF has
integrated GRB principles in the Budget Management Information System (BMIS) and Line Ministry Budget
Information System (LMBIS) since 2007 . Gender budget coding has started for prioritization of programs and
projects on the basis of gender responsiveness. Inclusion Policy- minimum 33% women representation in state
mechanism including constituent assembly and civil service. Allocation of minimum 35% of the budget of local
bodies in the Target Group Development Program(10 % for women, 10% for children, 15% for socioeconomically
disadvantaged groups)-local bodies resource mobilisation guidelines 2012 . Local election Act 2017 has made
mandatory provision for the political parties to nominate at least 50% women candidates among the key
positions of local governments( i.e. one woman among the mayor and dep. Mayor, chair and vice chair ).
b. Institutional Mechanisms
Ministry of Women, Children and Social Welfare has established national focal agency for formulating plans,
policies and programs for gender equality and women's empowerment . Ministry of Finance (MOF) has
established focal ministry for gender responsive budget formulation. Gender Responsive Budget Committee has
been established in MOF. GRB Implementation Committee has been established at Ministry of Federal Affairs
and Local Development  Gender Focal Pointshas been established(usually planning section) in all the
Sectoral/line ministries . GRB committees has been established at local bodies –DDC, VDC and
Municipalities( these bodies are now replaced by DCC, Rural Municipality and Municipality after introducing the
federal structure).
Key Achievements in GRB:
29 % women in parliament, approximately 17% women in civil service, 54% labor force participation. Women
staff increased in Nepal Army, Nepal Police and Armed Force Police. 50% of women has been elected on the key
positions of local level government agencies after local level election. Gender friendly working environment has
been set up. Establishment of women cell, women barracks, separate toilet system, child care center and code
of conduct- zero tolerance on sexual harassment. Gender Focal Points has been established in all the
Sectoral/line ministries. Gender audit and gender analysis of the program/projects has become significant. Land
ownership on women has increased to 24%. School drop out has decreased among the girls significantly due to
increased toilet facilities . Targeted budget and program for Gender equality and women empowerment
(MOFALD, MOAD, MOI, MOE, etc). Maternal and child health has been improved(MDG progress reportNepal
was awarded). More than 2000 women cooperatives registered and operating in local level.
Challenges:
 Lack of Internalisation of GRB by line ministries
 Deviation between budget allocation and expenditure
 Lack of gender sensitiveness during plan formulation and implementation
 Lack of capacity of GRB units in line ministries
 Weak implementation and monitoring system
Adopted from: https://www.unescap.org/sites/default/files/11.%20Nepal.pdf
Gender Sensitive Impact Assessment (GIA)
Introduction:
It is a process of comparing and assessing the law, policy or program that makes possible to identity in a
preventive way about the likelihood of a given decision has a negative consequences for the state of equality
between women and men. It indicates the future result/ impact of the proposed policies, programs and projects
after its implementation in a societies on men and women. The aim of GIA is to improve the design and planning
of the policy under consideration in order to prevent a negative impact on gender, equality and to strengthen
gender equality through better designed, transformative legislation and policies. It is used when drafting
legislation, policies, programmes and projects.
Importance of GIA:
1. It helps to strengthen gender equality.
2. It enables better governance.
3. It is a tool of learning.
Steps to conduct GIA:
Step 1: Definition of policy purpose of the planned policy, law or programme and show how it conducts with
gender equality.
Step 2: Checking gender relevance which involves whether or not it is likely to impact gender equality.
Step 3: Gender Sensitive Analysis
 Step 4: Proposals for improvement

Initiative Drafting the

Promoter law or policy

Final Draft

Gender
Impact
Final revision by Assessment
gender equality
body

Sending the GIA to

the gender equality
Adjustment of the law, body
policy or program

Evaluation and proposal for

improvement made by
gender equality body
Participatory and Conventional Monitoring and Evaluation
Participatory Monitoring and Evaluation
Introduction:
It is a process through which stakeholders at various level:
i. engage in monitoring or evaluation at a project
ii. share control over the content, process and the results of the monitoring and evaluation
iii. engage in taking or identifying corrective actions
It focuses on the active engagement of primary stakeholders.
Purpose of Participatory Monitoring and Evaluation:
1. To improve capacity building
2. Increase efficiency and effectiveness
3. Create new partnership
4. Lead empowerment
5. Promote sustainability
Conventional Monitoring and Evaluation
It is a process in which people are not the part or actors of the project's monitoring or evaluation but donor
representatives or external consultants are primary responsible for identifying needs, developing a general
project, providing money and others resources and monitoring and evaluation
Difference between Participatory and Conventional Monitoring and Evaluation
Participatory Monitoring and Conventional Monitoring and
Evaluation Evaluation
1. Stakeholders of various levels a. Project management or outside
engage in monitoring and evaluating experts ae engaged in monitoring
of particular project. and evaluating of project.
2. The role of stakeholder is to design b. The role of stakeholder is to just
and adopt the methodology, collect provide information.
and analyse data, share findings and
link them to action.
3. It is initiated by both donor and c. It is initiated by the donor.
stakeholder.
4. It's main purpose is capacity d. It's main purpose is donor
building, increase ownership over accountability.
results and multi-stakeholder
accountability.
5. It is evaluated by project e. It is evaluated by external
stakeholder assisted by facilitator. evaluator.
6. It is designed by stakeholders. f. It is designed by donor with limited
input from project.
7. The methods used are g. The method used are:
participatory learning and action, Questionnaire, semi-structured
appreciative inquiry and testimonial.
8. The final report is better
understanding of local realities,
stakeholders involved in analysis and
decision making.
Difference between Horizontal and Vertical Coordination for Information Networking and Policy Feedback
Horizontal Communication
1. It is when information flows
between the person holding the
same rank.
2. The purpose is to coordinate the
activities of various departments and
division of the organization.
3. The information flows between
the people holding the same rank
and status.
4. The method of communication is
mostly through oral.
5. It enjoy the greater degree of
informality.
6. It occurs in short lines as it
interviewing and focus group
discussion.
h. The final report is circulated within
the donor institution with copies to
project management.
Vertical Communication
a. It is when communication occurs
between superior and subordinates.
b. The purpose is to provide
necessary orders, instructions and
direction to the subordinates in
downward direction and receive
suggestion, opinion and feedback
from the subordinate in upward
direction.
c. The information flows from the
superior to subordinate and vice-
versa.
d. The method of communication is
mostly through written.
e. It is more formal than horizontal
communication.
f. It occurs through a long line of
happens between sender and communication.
receiver.
7. The course of action is joint g. The course of action is the follow
cooperation. of direction and guidelines as
provided by the upper units.

Gender Needs
Women and men have different roles based on their gender and therefore, they have different needs/
interest. These needs are two types:
1. Practical Gender Needs
These are material and immediate and relate to what people need in order to perform their current roles
more easily. Some examples of action that address women's practical need includes technologies that reduce
their work, provision of clean water supply, credit and access to financial services, etc. These are practical in
nature and often concern inadequacies in living conditions such as water provision, health care and
employment. These needs relate to physical conditions: food, shelter, work, water and so forth. When
working with stakeholders to meet their needs, it is important and to keep in mind that survival or practical
needs must be met first. It do not challenge the gender division of labor.
2. Strategic Needs
These are long term related to equalizing gender based disparities in wages, education, employment and
participation in decision making bodies. Example: issue around legal rights, empowerment, sharing of family
responsibilities, supportive legislation and overall involvement in policy making. Addressing the strategic
needs challenge the balancing of power between men and women. It vary according to particular contexts
related to gender division of labor, power and control. The meeting of strategic gender needs assits woment
to achieve gender equality and change existing roles by challenging women's subordinate position. These
needs are often seen as feminist in nature as they seek to change women's status and position in society in
relation to women.
Difference between Practical and Strategic Gender Needs
Practical Needs Strategic Needs
1. They are immediate. a. They are long term.
2. They are related to what people b. They are related for equalizing
need in performing their current gender-based disparities in wages,
roles more easily. education, employment and
participation in decision making
process.
3. It do not challenge the gender c. It do challenge the gender
division of labor and women's division of labor and women's
subordinate position. subordinate position.
4. It is related to physical d. It is related to the state and
conditions. control based on gender.
5. It is same all over the world. e. It varies according to particular
contexts related to gender division
of labor, power and control.
6. It is practical in nature and often f. It is often considered as feminist
concern inadequacies in living in nature as they seek to change
conditions. women's status and position in
society in relation man.
Eg: food, shelter, work, water, Eg: legal rights, empowerment,
 health sharing family responsibilities

Gender Analysis
Introduction:
It refers to the method of identifying, analysing and understanding:
1. Gender roles
2. Gender based power relations
3. Pattern's of women's and men's access to control of resources
It is used in policies, programs and projects that have ultimate effect on people. It can be carried out at any
time and at any stage of policy cycle such as:
1. During the initial design
2. Before the implementation
3. During the monitoring and evaluation
Elements of Gender Analysis:
1. Skilled professional with adequate resources.
2. Use of local expertise.
3. Findings must be used to actually shape the design of policies, programs and projects
Importance of Gender Analysis:
a) It provides information on the " gender map" i.e. who performs what activities and at what levels.
b) It helps to formulate plan and policies which help to identify the different needs of women and
men.
c) It helps to generate sex-disaggregated data.
d) It encourages gender sensitivity.
e) It promotes understanding of gender relations.
f) It makes it possible to understand who is most advantaged and who is disadvantaged.
g) It provides concrete data for project analysis and design by identifying specific areas of need for
different categories of people.
Things to be considered in Gender Analysis:
1. Sex and Gender
2. Gender roles and responsibilities
3. Productive and Reproductive Work
4. Access to and control over resources
Key Steps of Gender Analysis before the inception of the project:
Step 1: Collect sex-disaggregated data.
Step 2: Assess the Gender Division of Labor and Patterns of decision making
Step 3: Assess access to and control over productive resources, assets and benefits.
Step 4: Understand gender needs, priorities and strategies.
Step 5: Understand the complexity of gender relations in the context of social relations
Step 6: Assess barriers to women and men participating and benefiting equally from the project.
Step 7: Develop and include strategy to promote gender equality in project design and
implementation.
Step 8: Assess partner capacity for gender sensitive planning, implementation and monitoring.
Step 9: Assess the potential of the program to empower women and address strategic interests.
Step 10: Develop gender sensitive indicators.
Step 11: Apply the information and analysis throughout the program.
Gender Audit
It is a tool to assess and check the institutionalization of gender equality into organisations and
government including in their policies, programmes, projects.
Features of Gender Audit:
a) It is a social audit.
b) It establishes a baseline to identify the critical gender gap.
c) It recommends way of addressing gender gaps.
d) It documents good practices of attaining gender equality.
e) It helps to build organizational ownerships of gender inequalities.
f) It monitors progress in gender mainstreaming.
Importance of Gender Audit:
1. It identifies strengths and weakness in promoting gender equality issues.
 2. It enhances collective capacity of government to examine its activities from a gender
perspective.
3. It helps to identify gender gaps.
4. It sensitize the government in the area of gender.
5. It monitors and evaluates the relative progress in promoting gender equality.
6. It analyses the budgetary performance in promoting international commitments of CEDAW
and BPFA.

Step of preparing Gender Audit:

Step 1: Preparing the gender audit
Step 2: Carrying out the audit.
Step 3: Drafting of Gender equality plan and creation of a gender committee.
Importance of Gender Audit during the screening of the project:
1. It attempts to establish a baseline data.
2. It identifies strengths and weakness in promoting gender equality issues.
3. It enhances collective capacity of government to examine its activities from a gender perspective.
4. It helps to identify gender gaps.
5. It sensitize the government in the area of gender.
6. It monitors and evaluates the relative progress in promoting gender equality.
7. It analyses the budgetary performance in promoting international commitments of CEDAW and BPFA.
8. It increases women's awareness of economic issues.
9. It looks whether the implementing steps are addressed through its set goal or not.
10.It helps in achieving sustainable achievement of programs.
Gender Sensitive Monitoring and Evaluation:
Gender Sensitive Monitoring- It is a continuous, systematic and objective assessment of the design and
planning, the implementation and results of an ongoing activity, project or policy from a gender
perspective.
Gender Sensitive Evaluation: It is an annual, systematic and objective assessment of the design and
planning, the implementation and results of completed activity, project or policy from a gender
perspective.
Importance of Gender Sensitive Monitoring and Evaluation:
1. It assess the extent to which the programmes or policy are meeting or have met in their gender
equality objectives.
2. The information obtained from gender sensitive monitoring and evaluation helps to make adjustments
in the project activites.
3. It helps to foster human rights.
4. It helps to monitor the reduction of the gender gap.
Elements of the Monitoring and Evaluation:
1. Project design and inputs
2. Project implementation process
3. Project outputs
 4. Project impacts
5. Project sustainability and reliability
Difference between Gender Sensitive Monitoring and Evaluation
Gender Sensitive Monitoring
takes place more frequently.
affects every day decisions.
reflects the execution process of the
ect's activities.
s shown through more frequent but less
nsive reports.
e information generated is used inside the
ect.
e activities, products, means results and
urces constitute the purpose of monitoring.
corresponds to the level of operational
ramming.
s based on empirical indicators.
plementation and technical offer represent
evel of monitoring analysis.
Gender Baseline Data
Gender Sensitive Evaluation
a. It takes place less frequently usually on an
annual basis.
b. It affects long-term decisions.
c. It reflects the status of a project and the
corresponding impact.
d. It is shown through less frequent but more
extensive reports.
e. The information generated is useful for both
inside and outside the project.
f. Effects and impacts represent the purpose of
evaluation.
g. It corresponds to the level of long term
planning and strategic plans.
h. It is based on impact effect.
i. Vision, making, objectives, strategies and other
essential aspects represent the evaluation
analysis.
 It is a means paint a portrait of the lives of a community in particular realities, roles and responsibilities of
females and males and power relations between them. It enables to see:
a. Who (male/female) does what tasks
b. Who has the responsibility for which activities
c. Who controls and can access to which resources
d. Why controls and can access resources
It is basically two types:
a. Gender-Sensitive Quantitative Data
It includes basic sex and age disaggregated data covering the information of demographic and socio-
economic situation in regular times. In most of the countries, quantitative data are available at the
national level. Its sources are: National Census, World Bank, UNDP's national HDR. In situations, where
quantitative data are unavailable the needs assessment team have to rely on qualitative data.
b. Gender- Sensitive Qualitative Data
It provides indications about the quality of experiences of women, men, boys and girls as well as the level
of their participation in the different sectors. It can sometimes be acquired from published gender
profiles, survey reports and academic papers. When gender sensitive qualitative data do not exist in
published form, the assessment team have to get some information from individuals who are
knowledgeable about the effected area.

Gender Mainstreaming in Development

Introduction:
According to the ECOSOC, gender mainstreaming is a strategy for making women's and men's concerns and
experiences an integral dimension of design, implementation, monitoring and evaluation of policies and
programmes in all political, economic and social spheres so that women and men benefit equally and inequality
is not perpetuated. This definition covers:
1. Process
2. Output
3. Goal
In simple, gender mainstreaming is the strategy of attaining gender equality.
Importance of Gender Mainstreaming:
1. It puts the people at the heart of the policy making.
2. It leads to the better government.
3. It involves both women and men and makes full use of human resources.
4. It makes gender equality visible in the mainstream of the society.
5. It takes into consideration of the diversity among men and women.
Conditions required for Gender Mainstreaming:
a. Political will
b. Specific gender equality policy
c. Gender Disaggregated Data
 d. Gender Studies
e. Stakeholder involvement
f. Gender expertise
g. Accountability mechanisms
h. Implementation plan
i. Resources
j. Structures
Tools of Gender Mainstreaming
1. Define tools
a. Gender Studies
b. Gender Analysis
c. Gender impact assessment
d. Gender Stakeholders Consultations
2. Plan Tools
a. Gender Budgeting
b. Gender Procurement
c. Gender Indicators
3. Check Tools
a. Gender Monitoring
b. Gender Evaluation
4. Act tools
a. Gender Equality training
b. Gender sensitive institutional transformation
c. Gender awareness rising
d. Gender budgeting
Adopted from: https://eige.europa.eu/gender-mainstreaming/what-is-gender-mainstreaming
Gender Concern in Stakeholder Analysis
It is a tool to assess which gender i.e. men or women are likely to support or oppose the given strategy to
address a problem and which gender i.e. men or women are going to be benefitted or affected by the project.
Importance of Gender Concern in Stakeholder Analysis:
1. It helps to identify the needs and interests of both men and women.
2. It helps to identify the gender gaps between men and women.
3. It helps in identification of:
a) roles and responsibilities
b) access to resources, information and income
c) decision making position at home
d) access to the policy benefits
4. It helps in the identification of differences in influence and decision-making power in domestic and public life.
Elements of Stakeholder Analysis:
i. Identifying the groups that are directly or indirectly involved or affected by the problem and its possible
situation.
ii. Clarifying the interests of each group in relation to the problems or issues being addressed.
iii. Outlining the perceived problems
iv. Identifying the resources
Gender- Disaggregated Data
These are data that are collected and analysed separately on males and females. It reflect roles, real situations,
general conditions of men and women in every aspects of the society.
Importance of Gender Disaggregated Data:
a) It helps to find out the different conditions of men and women in every aspects of the society.
b) It helps to consider and track the impacts of national activities on men and women.
c) It helps to find out and define the problems and then develop beneficial options for the men and women.
d) Allocate resources and work in a fairer way.
e) Evaluate and monitor outcomes and conclusion by sex.
f) Present the progress or lack of women by indicators and regular data publications.
Gender Sensitive Indicators:
It is a tool to assess the progress of a particular development intervention towards the achieving gender
equality.
Importance of Gender Sensitive Indicators:
1. It shows the gender inequalities in the society.
2. It gives evidence on progress towards gender equality.
3. It provides evidence on the development of progrmmes, policies and projects that respond to the
needs of women and men.
4. It is a learning processes for policymakers and stakeholders by making gender inequalities visible.
5. It contributes in increasing citizen's and decision-making awareness on gender inequalities that may
encourage to take action.
6. It provides evidence for monitoring and evaluation.
Types of Indicators:
1. Quantitative Indicators:
It produces quantifiable results and measures of quantity. It focus on issues that can be counted such as
percentages of women and men in the labor market, male and female wage rates or school enrolment
rates for boys and girls. It can show the magnitude of change in gender equality. The sources of
quantitative indicators are data systems and records where information is presented in a sex-
disaggregated manner, census, labor force surveys, administrative records and sociological surveys.
2. Qualitative Indicators:
It captures people's experiences, opinions attitudes and feelings. Eg: women's experience to the
constraints or advantages of working in the informal sector. It is useful for understanding processes but
frequently do not show typical or widespread the expressed views. It is harder to measure as they involve
processes and use categories of classification such as those based on perceptions. It indicates changes in
attitudes and behavior, growth in knowledge and skills, self-reliance, confidence. The sources of
qualitative indicators are: public hearings, focus groups, attitude surveys and interviews, participant
observation.
Policy Dialogue: Policy Analysis and Policy Choice
It is an interactive process of communication and exchange of viewpoints. It is a form of conflict
resolution. It aims to influence development outcomes towards gender equality.
Characteristics of Policy dialogue:
a) It is carefully constructed with deliberative meetings.
b) It diverse interests groups to the table.
c) It focuses on a regulatory policy or planning issue with a common interest.
d) It has a life cycle with beginning, middle and end.
e) It seeks to formulate practical solutions to complex problems.
Steps involved in Policy Analysis and Policy Choice:
Step 1: Startup: Issue focusing and Arranging
Following things are considered:
1. Evaluating the conflict for possibilities.
2. Organizing leadership, sponsorship and willingness to convince.
3. Gaining the participation of key stakeholders.
4. Designing a forum and strategy.
5. Establishing protocol and forging working agreements on the issues to be addressed.
 Step 2: Management: Information, Exchange and Discussion
1. Organizing productive and respectful exchange of information.
2. Pushing the parties to understand the positions and underlying interests of all stakeholders.
3. Helping the parties discover, clarify or create the highest joint gains possible.
Step 3: Closure: Solution, Seeking and Consensus Building
1. Assisting the parties in making informed choices.
2. Capturing arrangements and helping ratify, memorialize and prepare for implementation

Decentralization and Governance System

Centralisation
1. It is the concentration of
powers,authority and resources to the
center.
2. It involves systematic consistent of
authority
3. The communication flow is vertical.
4. It is ideal for small-sized countries.
5. There is less chance of conflict.
6.The burden of work goes only to the
center.
7.The power of decision lies within the
Decentralisation
a. It is the dispersion of power, authority and resources to
the various level of local bodies.
b. It involves dispersal of authority.
c. The communication flow is open and free.
d. It is ideal for large and multi ethnic, multi culture
countries.
e. There is high chance of conflict.
f. The burden of work is shared among many levels.
g. The power of decision lies with the multiple levels.
center.
8. It is implemented when there is h. It is implemented when there is considerable country
inadequate control over the country. over the country.

Similarities between Centralisation and Decentralisation:

1. Both are the ways to change the government structure.
2. Both are the ways to transfer decision making power.
3. Both deals with how information is flowing.
4. Both influences the tiers in government.
5. Both influences the span of control of government.
Relationship between Centralisation and Decentralisation
Both centralization and decentralization depends upon the situation and many factors associated with it.
Decentralization is not an alternative to centralization. Both are needed. The complementary roles of national
and sub-national actors should be determined by analyzing the most effective ways and means of achieving a
desired objective.
a. Dependence of Decentralization on Centralization
 Philosophy/emphasis on top-down control, leadership vision, strategy
 Decision making, strong, authoritarian, visionary, charismatic/charming
 Organizational change shaped by the vision of top leader
 Execution: decisive, fast, coordinated able to respond quickly to major issues and changes
 Uniformity: Low risks of dissent and conflicts between parts of organization
 helps to train both national and local officials
 b. Dependence of centralisation on deentralisation:
 Philosophyemphasis bottom up, political, cultural and learning dynamics
 decision making: democratic participative and detailed
 organizational change: emerging from interactions, organizational dynamics
 Execution: evolutionary, emergent, flexible adaptive to minor issues and changes
 Participation, accountability, low risks of not invented here behavior
Forms of Decentralization:
a. Deconcentration
It is considered to be the weakest form of decetralisation and used in unitary states. It is simply the transfer of
power and functions from the central organization to their respective field level agencies which morally work for
the central government and do not enjoy the autonomy. The decentralization in the deconcentration form is the
decision making discretionary and the lattitute to the plans of the center. The transfer of authority includes the
transfer of authority for specific decision making, financial and management functions by the same jurisdictional
authority of the central government. It doesnot suffer from the organizational discontinuity.
b. Delegation
It refers to the transfer of government decision making and administrative authority or responsibility for
completing specified tasks to institutions or organisations that are either under government indirect control or
semi independent. It leads to the formation of semi-autonomous body. In other words, it is a process of
transferring authority or power to one or more persons who act on behalf of others. It is usually done according
to the set of certain rules/legal contract.
c. Devolution
It refers to the creating, strengthening and transferring power and functions to the autonomous lower level
such as local units that are legally constituted as separate governance bodies. It provides opportunities for the
effective participation in the local level decision making process. It helps to promote democracy at the grass
root levels so that the local representation might gather experience to be able tomorrow for the natural level
progamming. Through devolution, central government distributes certain functions or creates new units of
government that are outside of its control. In the devolution, local bodies are elected locally.
d. Privatization
It is the process of transferring ownership of a business, enterprise, agency, public service or property from the
public sector to the private sector or private non-profit organization. It is to get the job done through the private
organizations. It includes:
a. allowing private enterprises to perform functions that had been previously monopolized by government
b. contracting out the provision or management of public services to commercial
c. financing public sector through capital market and allowing private organization to participate
d. transferring responsibilities for providing services from the public to the private sector
Benefits:
a. development would be faster
b. innovative solutions
c. effective and time bound solutions
d. cost cutting
e. efficient delivery of many goods or services
Designing Decentralization:
Decentralization is a generic term which includes devolution, deconcnetration, delegation, privatization, etc. The
challenges to be resolved in designing and deciding decentralization concerns on the many modes of
decentralization to be applied. Central government around the world are decentralizing fiscal, political and
administrative responsibilities to lower level governments and private sector. Many decentralization policies in
the world are designed in a mix of them all.
Challenges:
a. Sizable amount of mutual trust between the people and political as we as technical leadership.
b. Requirement of leadership that trusts people and the people that trust leadership especially in the local and
national levels.
c. Challenge of engineering consensus.
d. Challenges related to capacity
e. Challenges related to finance decentralized governance
Methods for designing decentralization :
a. Conductive political climate.
b. Favorable socio-psyschological attitude.
c. Adapting participatory approach in planning local governance and decentralization program.
d. Clarity of functional jurisdication.
e. Recognisation of autonomous status of LGIs
f. Capacity building of local bodies.
g. Conceptual clarity on local development and people's participation.
h. Political stability an continuity.
Five important conditions for successful decentralization:
1. The decentralization framework must link financing and fiscal authority to the service provision
responsibilities and functions of the local government.
2. The local community must be informed about the cost of services and service delivery options.
3. There must be mechanisms by which the community can express its preferences.
4. There must be a system of accountability.
5. The instruments of decentralization- the legal and institutional framework, the structure of service delivery
responsibilities and the intergovernmental fiscal system are designed to support the political objectives.
Governance:
It came from the Latin verb "gubernare" or more originally from the Greek word "kubarnein" which means " to
steer". Basing on its etymology, it refers to the manner of steering or governing or directing and controlling
group of state or people. It is commonly defined as the exercise of power or authority by political leaders for
well-being of their country's citizens or subjects. It is a complex process by which some people of the society
exercise power and enact and promulgate public policies which directly affect economic and social
development. It is the quality of relationship maintained by the government to the society.
Unitary and Federal System
Unitary System
It is a system in which a sovereign state is governed by a single entity. The central government is supreme and
the administrative divisions exercise only powers that the central government has delegated to them. Sub-
divisions are created and abolished, and their powers may be broadened and narrowed by the central
government. Unitary system is practices in countries: U.K. , France, Japan
Advantages of Unitary System:
1) It creates less confusion over the governing process among the average citizen.
2) It can respond quickly to the emergency situations.
3) It is usually cheap to run.
4) It is a smaller form of government.
5) There is less complexity in the legal system of a unitary government.
6) A unitary system of governing can replicate the federal states.
7) Unitary system helps to create a system of unity.
Disadvantages of Unitary System
1) It can be lacking in infrastructure.
2) It is a structure that can ignore local needs
3) It can encourage an abuse of power.
4) Manipulation quite easily occur in the unitary government.
5) Many unitary states does not allow autonomy.
 6) It can also have a slower response in local emergencies.
Federal System
It is a political system where a country is divided into different autonomous states or provinces. Each state
or provinces has a separate government along with its federal government in the center.
Advantages:
1) Maintain close relationship between the government and its people.
2) Conflict may settle at local level.
3) Maximum use of means and resources.
4) Does not hamper the country even if the central government is dissolved.
5) No need to depend upon the center for everything.
6) Increment of public participation in government activities.
7) Local and ethnic art ,culture and heritages can be well protected.
8) Accelerate development activities.
9) Helps to maintain balanced population distribution.
10) Creates a protection against tyranny
11)Encourages a system of cooperation.
Disadvantages:
1) Unequal distribution of means and resources between the states may cause unequal development and
misunderstanding may cause the conflict among the states.
2) It is more expensive than unitary system.
3) There may be misunderstanding between federal and provincial government regarding the sharing of
power and responsibilities.
4) It can encourage to pass ridiculous laws.
5) It can be structured to benefit only rich.
6) The province may demand different state which may become damage to the national integrity.
Difference between Coming together and Holding together federalism
Coming Together Federalism Holding Together Federalism
1. It involves independent states a. It involves the large country
coming together on their own to deciding to divide its power between
form a bigger unit. the constituent states and national
government.
2. In coming together, units try to b. In holding together, there is
increase their security by pooling absence of pooling sovereignity and
sovereignity and retaining identity. retaining identity.
3. In this category, all the constituent c. In this category, central
units usually have equal power and government tend to be more
are strong equal to the central powerful than the states and the
government. units have unequal powers.
4. States can challenge and go d. States cannot challenge and go
against the decision of the center. against the decision of the center.
Eg: USA, Switzerland, Australia Eg: Nepal, India, Spain

Difference between Unitary System and Federal System

Unitary System Federal System
1. The powers remained at the a. Most of the powers are
central place and central
government have the authority to
make the decision.
2. It is not as much democratic
form of government due to the
decision making power at central
place.
3. It has one government known
as central government.
4. It may or may not have
constitution like England do not
have.
5. Highest court cannot give
judgement or remarks on the law
or bill passed by the parliament.
6. The powers and authorities are
shared among lower levels when
needed.
7. There are the common set of
riles and regulations in the entire
country.
8. There exist only one national
delegated to the provincial or
state government.
b. It is pure form of democratic
government in which provinces
can enjoy some power regarding
governing and decision making in
their respective regions.
c. It has two governments one at
central place and other at
province or state level.
d. It must have a constitution.
e. In case of disputes between the
institutions in federal government
or any bill passed by
parliamentary, judiciary will
interfere.
f. There is hierarchy of power
from federal level to state and
local level.
g. There can be variations in rules
and regulations at central and
local level
h. There can be more self
 tire of government. governing territories.

Similarities between Unitary System and Federal System:

1. Both system can be in monarchies and democracies.
2. In both cases, the central government maintains control over key issues.
3. Both system can promote stability and prosperity.
Powers of Federal Government in Nepal according to the Constitution:
1. Relating to defence and military
(a) Protection of national unity and territorial integrity
(b) Relating to national security
2. War and defence
3. Arms and ammunitions factories and production thereof
4. Central Police, Armed Police Force, national intelligence and
investigation, peace, security
5. Central planning, central bank, finance policies, monetary and banking,
monetary policies, foreign grants, aid and loans
6. Foreign and diplomatic affairs, international relations and United Nations
related matters
7. International treaties or agreements, extradition, mutual legal assistance
and international borders, international boundary rivers
8. Telecommunications, allocation of radio frequency, radio, television and
postal matters
9. Customs, excise-duty, value-added tax, corporate income tax, individual
income tax, remuneration tax, passport fee, visa fee, tourism fee, service
charge and fee, penalty
10. Federal civil service, judicial service and other government services
11. Policies relating to conservation and multiple uses of water resources
12. Inland and inter-State electricity transmission lines
13. Central statistics (national and international standards and quality)
14. Central level large electricity, irrigation and other projects
15. Central universities, central level academies, universities standards and

regulation, central libraries

16. Health policies, health services, health standards, quality and monitoring,
national or specialised service providing hospitals, traditional treatment
services and communicable disease control
17. Federal Parliament, Federal Executive, Local Level related affairs, special
structure
18. International trade, exchange, port, quarantine
19. Civil aviation, international airports
20. National transportation policies, management of railways and national
highways
21. Laws relating to the Supreme Court, High Courts, District Courts and
administration of justice
22. Citizenship, passport, visa, immigration
23. Atomic energy, air space and astronomy
24. Intellectual property (including patents, designs, trademarks and
copyrights)
25. Measurement
26. Mines excavation
27. National and international environment management, national parks,
wildlife reserves and wetlands, national forest policies, carbon services
28. Insurance policies, securities, cooperatives regulation
29. Land use policies, human settlement development policies, tourism
policies, environment adaptation
30. Criminal and civil laws making
31. Security printing
32. Social security and poverty alleviation
33. Constitutional Bodies, commissions of national importance
34. Sites of archaeological importance and ancient monuments

35. Any matter not enumerated in the Lists of Federal Powers, State Powers
and Local Level Powers or in the Concurrent List and any matter not
specified in this Constitution and in the Federal laws
List of Powers of State Governments:
1. State police administration and peace and order
2. Operation of banks and financial institutions in accordance with the
policies of Nepal Rastra Bank, cooperative institutions, foreign grants
and assistance with the consent of the Centre
3. Operation of Radio, F.M., television
4. House and land registration fee, motor vehicle tax, entertainment tax,
advertisement tax, tourism, agro-income tax, service charge, fee,
penalty
5. State civil service and other government services
6. State statistics
7. State level electricity, irrigation and water supply services, navigation
8. State universities, higher education, libraries, museums
9. Health services
10. Matters relating to the State Assembly, State Council of Ministers
11. Intra-State trade
12. State highways
13. State bureau of investigation
14. Physical management and other necessary matters of State
governmental offices
15. State Public Service Commission
16. Management of lands, land records
17. Exploration and management of mines

18. Protection and use of languages, scripts, cultures, fine arts and
religions
19. Use of forests and waters and management of environment within the
State
20. Agriculture and livestock development, factories, industrialization,
trade, business, transportation
21. Management of trusts (Guthi
List of Concurrent powers of Federal Government and State Government:
 Civil and criminal procedure, evidence and oaths (legal recognition, public acts and records,
1.
and judicial proceedings)

2. Supply, distribution, price control, quality and monitoring of essential goods and services

Preventive  detention  for  reasons  connected  with  the  security  of  the country, prison
3.
and detention management, and maintenance of peace  and order

4. Transfer of accused persons, detainees and prisoners from one State to

another State

5. Laws relating to family affairs (marriage, transfer of property, divorce,

persons on the verge of extinction, orphan, adoption, succession and

joint family)

6. Acquisition, requisitioning of property and creation of right in property

7. Contracts, cooperatives, partnership and agency related matters

8. Matters relating to bankruptcy and insolvency

9. Drugs and pesticides

10. Planning, family planning and population management

11. Social security and employment, trade unions, settlement of industrial

disputes, labour rights and disputes related matters

12. Legal   profession,   auditing,   engineering,   medicines,   Ayurvedic

medicines, veterinary, Amchi and other professions

13. State  boundary  river,  waterways,  environment  protection,  biological

diversity

14. Matters related to means of communication

15. Industries and mines and physical infrastructures

16. Casino, lottery

17. Early preparedness for, rescue, relief and rehabilitation from, natural

and man made calamities

18. Tourism, water supply and sanitation

19. Motion pictures, cinema halls and sports

20. Insurance business operation and management

21. Poverty alleviation and industrialization

22. Scientific  research,  science  and  technology  and  human  resources

development

23. Utilization of forests, mountains, forest conservation areas and waters

stretching in inter-State form

24. Land policies and laws relating thereto

Employment and unemployment aid

25.
List of Power of Local Governments:

1. Town police

2. Cooperative institutions
3. Operation of F.M.

Local  taxes  (wealth  tax,  house  rent  tax,  land  and  building registration fee, motor
4. vehicle tax), service charge, fee, tourism fee, advertisement tax, business tax, land tax (land
revenue), penalty, entertainment tax, land revenue collection

5. Management of the Local services

6. Collection of local statistics and records

7. Local level development plans and projects

8. Basic and secondary education

9. Basic health and sanitation

10. Local   market   management,environment   protection   and   bio-diversity

diversity

11. Local roads, rural roads, agro-roads, irrigation

Management of Village Assembly, Municipal Assembly, District Assembly, local courts,

12.
mediation and arbitration
 Assembly, local courts, mediation and arbitration

13. Local records management

14. Distribution of house and land ownership certificates

Agriculture  and  animal  husbandry,  agro-products  management, animal health,

15.
cooperatives

animal health, cooperatives

16. Management of senior citizens, persons with disabilities and the

incapacitated

17. Collection of statistics of the unemployed

18. Management, operation and control of agricultural extension

19. Water supply, small hydropower projects, alternative energy

20. Disaster management

21. Protection of watersheds, wildlife, mines and minerals

 22. Protection and development of languages, cultures and fine arts

List of Concurrent Powers of Federation, State and Local Level

1. Cooperatives

2. Education, health and newspapers

3. Health

4. Agriculture

5. Services such as electricity, water supply, irrigation

6. Service  fee,  charge,  penalty and royalty from  natural  resources,

7. Forests, wildlife, birds, water uses, environment, ecology and bio-diversity

8. Mines and minerals

9. Disaster management

10. Social security and poverty alleviation

 11. Personal events, births, deaths, marriages and statistics

12. Archaeology,  ancient monuments and museums

13. Landless squatters management

14. Royalty from natural resources

15. Motor vehicle permits

 

Local Governance:
Introduction:
It is the process of transferring functions, responsibilities, resources and authorities from central to the local
government. It is a more or less polycentric system in which a variety of actors are engaged in local public
decision making process. It is a process of inclusive decision making where local governments and other relevant
actors participate in decision making to agree and implement essential tasks and basic services that affect the
daily life. It is a process by which authority, power, resources and accountability are transferred from central to
local levels. It came into fashion in the middle of 1990s.
Basic Elements of the Local Governance:
a. Participation
b. Equity
c. Transparency.
d. Accountability
e. Rule of law
f. Legitimacy
Main Actors of Local Governance:
a. State (Executive, Legislative and Judiciary ) creates the conductive political and legal environment.
b. Local Government provides institutional and administrative framework for conducting community affairs.
c. Private Sector provides the foundation for economic growth and development.
d. Civil Society facilitate social and political interaction.
Importance of Local Governance:
1. It protects the local interest concerning the livelihood of the community.
2. It promote good governance and build partnership with Civil Society, Private Sector and Government units of
the local level.
3. It helps to express the will of the local people.
4. It helps in developing local leadership.
5. It helps to enhance local techniques.
6. It helps to protect local culture.
7. It helps to utilize local resources.
Self-Reliance Local Government/ Self-Reliance Development:
Introduction:
It is defined by independence. It is the ability to think and act without the help or influence of others. It is the
ability to decide what you should be or do. It is linked with the community development and related to the
terminologies like self-help, mutual help, indigenous participation and rural development. It encourages the
need of improving living conditions of people by using home initiatives and resources. It is considered as the
new blue print of community development. It relies on internal resources as opposed to those developments
that relies heavily on external resources but it should not be considered as autarky as it allows external support.
Poor and disadvantage people find extremely difficult to improve their living without outside help in such a
condition, external help or support can serve as a catalyst or provide the push for action against poverty or
improve standard and even to sustain improvement conditions.
Principles of Self-Reliance Development:
1. The outsider must make a positive difference in the living conditions of the doer ( i.e. helped ) which
means the impact of the helper must be seen as felt.
2. The doer ( the helped ) must own and implement the program or plan the assistance.
3. The outsider must see the world through the eyes of the doer and respect the autonomy of the doer.
4. The help or support must not undercut the autonomy of the doer.
5. The help must be for a limited period of time.
Vital Elements for Self-Reliance Development:
1. Sufficient and Sustainable resources
2. Capacity building of local actors
3. Empowerment of general people
 4. Institutionalization of democratic system
5. Promotion of rule of law
6. Bottom-up planning, monitoring and evaluation
7. Political will, honesty and stability.

Globalization vs Localization
Globalization: It can be defined as the growing interdependence between all people of the world. The
increasing interdependence and interconnectedness of places globally. It is cross border integration of
economic, social and cultural activities.
Localization: It is a process and vision of local development through the use of local resources and
technology. It prioritize the local issues and resources than the international, regional and national issues.
Decentralization is the foundation of localization: mainly through devolution and representation. The main
objective of localization is to protecting and developing local knowledge, skill and technology. It is both
protection and promotion of local uniqueness. Localization is a concept based on self-reliant local
development.
Globalization Localization
1. It is all about spreading without a.It can be seen as counterpart of
any boundaries and promotes the globalization and promotes local
free movement of goods and product and culture.
services between communities or
countries.
2. It is global. b. It is local.
3. There is international There is local
collaboration,alliances,exchange involvement,colloaboration and
and competition. support.
4. There is international brand d. There is local brand recognition
awareness.
Too much of globalization can bring problems like discouragement in the production of local goods,
interference of global markets in the economy, pressure of global competition to the local farmers and so on.
Whereas, too much localization can cause problems like: limitations of local goods only in the local market,
lack of marketing of local goods in the international market and so on.
Globalization and localization are not an alternative and competitor of each other. And, in fact, they should
complement each other by considering these points:
 Human development
 Regional balance
 Equity and equality
 Poverty alleviation
 Protection and promotion of environment
 Appropriate management of population
 Utilization and promotion of local knowledge and skills
 Social justice
 Proper and effective utilization of natural resources.
 Social integration

Good Governance:
It is a subset of governance wherein public resources and problems are managed effectively and in response
to critical needs of the society. It is a term which used to encompass/ describe: full respect of effective
participation, human rights, rule of law, multi actor partnerships, accountable processes, pluralism,
transparent and institutions, an efficient and effective public sector, legitimacy, access to knowledge,
information and education. It refers to the public administration process that maximizes the public interests.
Importance of Good Governance:
1. It conducts and manage public affairs and resources to guarantee human rights.
2. It maintains public participation, accountability and transparency
3. It makes the government work effectively and legitimate in administrative system.
4. It promotes and sustains holistic human development.
Elements or Characteristics of the Good Governance:
1. Participation
Participation means active involvement of all stakeholders in the process of development by policy
making, prioritizing issues, accessibility to public goods and services and also allocating resources. It is
the political dimension of the good governance. Good Governance requires the participation of all men
and women including physical challenged one. Traditionally, the participation was recognized as the
"top-down approach" which refers to the government monopoly in both responsibilities and power.
But today, the government works in hand with other sectors of the society and considers them the
partners of government in attaining different goals which is knows as "horizontal system" or " bottom-
up approach". From human rights stand, people have the rights to participate in decisions that affect
them and also seek justice if they are denied of these rights.
2. Rule of Law
It means that everybody in the system is equal before the law and the law is implemented in impartial
manner. It is an essential ingredient of Good Governance and cornerstone of democracy. Good
Governance requires fair legal framework that are enforced impartially and protects human rights.
Through the rule of law people express their will and exercise their sovergnity. It sees that the
operating and functioning environment of the society must be based on objectives laws and there
must not be any fancies of anyone who is powerful or influential. The rule of law demands the
following things:
a. People and civil society renders habitual obedience to the rule of law.
b. Government acts within the functions and powers prescribed by the law.
c. Laws are responsive to the needs of the society.
The absence of rule of law is anarchy and it happened when people act in disregard of the law or the
government acts beyond their powers. The strengthening of rule of law sees reforms in enforcement
agencies. In conclusion, rule of law means "peace and order", "absence of corruption","impartial and
effective judiciary system", "observance and protection of human rights" and "clear,publicized and
stable laws".
3. Equity and Inclusiveness
Equity means everyone is equal and has equal opportunity in a community disregard of his or her cast,
gender, color, race, religion or faith and social status. Inclusiveness means consideration of interests,
aspirations and opinions of all individuals and groups living in a society while formulating plans and
policies meant for the society. Equity and inclusiveness are the bases of the human rights standard of a
society and essence of social justice as a fundamental principle of governance within a human
community. A society's well being depends on ensuring that all its members feel that they have
partnership in it and do not feel excluded from the mainstream of the society. It is based on the
principle that who have less in life should have more in laws.
4. Transparency
It means that processes, institutions and information are directly accessible to all the people of the
society. It is built on the free flow of information. It promotes the openness of government action,
decision making processes and consultative processes among public sector and all stakeholders. It can
be strengthened through the citizen's right to information with a degree of legal enforceability. As an
indicator of the good governance, it means people are open to information regarding decision making
process and the implementation of the same. Lack of transparency in the society creates environment
for corruption which is harmful to the progress and welfare of the society.
5. Responsiveness
It means that the requests and requirements of the people are addressed in the punctual manner. A
deliberative unnecessary delay by the service providers in performing their duties towards the people
must be avoided at any cost. It must be ensured that service delivery system must have a provision of
the time and period clause to accomplish their duties within a predictable time.
6. Consensus and Legitimacy
Consensus usually means collaboration rather than compromise. To secure the peace and harmony
there must be the consensus among the various stakeholders, hence, the governance structure and
functioning obtains legitimacy from whole community. To meet the consensus, a strong, impartial and
flexible meditation structure must be established. Instead of one opinion being adopted by a plurality,
stakeholders are brought together until a convergent decision is developed. Consensus decision
making is a process that not only seeks an agreement of most participants but also mitigates the
objectives of the minority to achieve the most agreeable decision. Public hearings or consultations in
arriving at a consensus are necessary in the process of governance.
7. Effectiveness and Efficiency
 It is the technical aspect of the good governance. The concept of efficiency in the good governance
covers the sustainable use of natural resources and the protection of the environment. Good
governance requires that the institutions, processes and actors could deliver and meet the necessities
of the society in a way that available resources are utilized efficiently and effectively. Efficiency and
effectiveness of resources must go necessarily together to ensure the best possible results for the
community. To achieve effectiveness and efficiency, good governance principles prescribe a
competitive economic environment, capacity building of the institutions and required training to the
personnel.
8. Accountability
It means that decision makers in the government sector are answerable to the public as well as to the
institutional stakeholders for their action or lapses. It also means answerability or responsibility for
one's action.
Principle of Accountability:
a. Every person or group is responsible for their action most especially when their acts affect public
interests.
b. Information sharing and transparency must be promoted by government structures.
Role of Various Stakeholders in Good Governance
a. Role of Government in the Good Governance:
1. Maintain rule of law
2. Capital formulation, fiscal policy, foreign policy
3. National defense
4. Investigating in social services and infrastructure
5. Protecting the vulnerable
6. Policies reducing regional disparity and maintaining national integrity
7. Maintaining accountability and transparency
8.Being consensus and legitimate
Role of Local Government Staff
Being responsible for council revenue collection and expenditure according to the approved budget.
Maintain political and public relations with councillors and other external stakeholders.
Implementation of council business through council and committee meetings.
Being responsible for policy formulation, co-ordination and accountability, and legal matters.
Formulating, coordinating and supervising implementation of plans for economic, social and industrial
development in their areas of jurisdiction.
Monitoring and controlling the performance of duties and functions of the council and its staff.
Ensuring collection and the proper utilization of revenues of the council.
Making by-laws applicable throughout their areas of jurisdiction, and considering and improving by-laws
made by village councils within their areas of jurisdiction.
Ensuring regulating and coordinating development plans, projects and programmes of villages and township
authorities within their areas of jurisdiction.
Regulating and monitoring the collection and utilization of revenue of village and township authorities.
Subject to the laws in force, doing all such acts and things as may be done by a people’s government.
b.Role of Civil Society in Good Governance
Civil society can be defined as the voluntary organizations that are neither the part of the government,
business nor family and performs the function like delivering services or trying to influence the development
policies. It includes: NGOs, INGOs, Cooperatives, Registered and unregistered savings and credit
organizations, community user groups and community based organizations.
Features of Civil Society:
Autonomous
Democratic Governance structure
Voluntary membership base
Non profit status
Focus on specific issues, functions or activities
Function of Civil society in Good Governance
mobilize human energy and creativity to address specific interests, serve community needs, undertake
collective action and provide a common voice
provide organized means of dialogue and services
raise awareness
receive and deliver services
undertake development actions
identify needs and provide feedbacks on policies
strengthen democracy and provide new forms of interest and solidarity
promote public participation develop democratic values like tolerance
"watchdog" of holding governments and institutions to account
c. Role of Media in Good Governance
Medias are the communication outlets or tools used to store and deliver information or data. The word
"media" is derived from the word medium showing mode or carrier. It is the sword arm and fourth pillar of
democracy.
Role of Media in Good Governance:
It acts as watchdog to protect public interest against malpractice and create awareness.
It inform people about the things that are happening.
It helps to get justice for a lot of cases
It holds the government accountable on the behalf of the people
It present the opinion of the people
It promote efficiency, effectiveness and integrity.
d. Role of I/NGO in Good Governance
They are the non-profit entities independent of government influences.
Role of NGO:
It can acquire land, construct housing, provide infrastructure and operate and maintain infrastructure such
as wells or public toilets.
It supports innovation, demonstration and pilot projects.
It facilitates communication between government and people.
It provides technical assistance and training.
It research, monitors and evaluates the projects.
It advocates for the poor.
Self-Help Group(SHG)
Introduction:
It is a popular concept. It is almost two decade old. It help to increase economic development of a country. It
is now evolved as a movement.
Principle: It is based on the : group approach, mutual trust of small and manageable group, spirit of thrift,
peer group pressure in re-payment, skill training, capacity building and empowerment
Characteristics:
1. It is a voluntary association.
2. It has a member of 15-20 people.
3. It has a collective goal.
4. It has a feeling of mutual help/ mutual support.
 5. It is informal group.
6. It addresses the group's common problems.
Role of SHG
1) Most of its members are women as a result participation of women in the country's development is
increasing.
2) It helps to elevate the economic status of member families.
3) It helps to boost in women empowerment.
4) It can serve many different purposes depending on the situation and the need.
Deliberative Democracy
Introduction:
It is a thought in the political theory which claims that political decision should be the product of the fair
and reasonable discussions among the citizens. It is all about placing the people closer to the affairs of
government and decision making. It is a form of democracy in which deliberation is central to decision
making. It adopts the elements of both consensus decision making and majority rule. Rather than thinking of
political decisions as the aggregate of the citizen's preferences, it claims that citizen should arrive at political
decisions through reason and the collection of competing arguments and viewpoints.
Strengths:
1) It is more easily able to incorporate scientific opinion and base policy on outputs of ongoing research.
2) It tend to generate the ideal conditions of impartiality, rationality and knowledge of the relevant facts.
3) It allows participants to deduce what is morally correct.
4) It tend to produce outcome which is better than other forms of democracy.
5) The debates arising from deliberative democracy are much more civil, collaborative and evidence
based than the other debates.
Inclusive Democracy:
Introduction:
It means participation of all the citizen in the policy formulation to bring all citizen of country in the main
stream of the politics. It is a form of social organization which re-integrate society with economy, polity
and nature. It is derived from a synthesis of two major historical traditions- Classical Democratic and
Socialist.
Elements of Inclusive Democracy:
There is four constituent element of inclusive democracy-political, democracy, economic and ecological.
The first three elements aims at the equal distribution of political, economic, and social power.
Inclusive Democracy tools:
1) Participation a with control
2) Empowerment and Capacity Development
3) Proportional Representation
4) Reservation, Social protection, subsidies
5) Legal protection
6) Awareness program
7) Empower to weaker
8) Opportunity to excluded
9) Investment in Human Development and poverty alleviation
Centralization
It is a concept that denotes the concentration of authority in a particular position. It is making the
works done from the central authority. There is low or no involvement of the local institutions in
the service delivery options. The accountability, responsibility an resources capacity lies on the
central bodies whereas local people are only service receivers. It is applicable to the beginning
phase of any country with less diversity and service demand, no development in local leadership.
Strengths of Centralization:
1. Emphasis on top-down control leadership
2. Decision making strong
3. Organizational change shaped by the vision of the top leader
4. Fast and coordinated action which is able to respond quickly to major issues and changes.
5. Low risks of conflicts
6. Easier to implement uniform policies and practices for the whole country
7. Prevents the other parts of the country to become too much independent hence maintains
national integration
Drawbacks of Centralization:
1. Lack of authority down the hierarchy may reduce the local leaders motivation.
2. Does not maintain public participation
3. Public service misses flexibility and speed of decision making.
4. Does not address the local needs effectively
5. Does not maintain accountability and transparency
6. Service delivery will be slow due to the bureaucratic process
Decentralization
It is the establishment of local bodies outside the regular bureaucratic structure. It is the transfer of
authority and responsibility for public functions from the central government to subordinate or
quasi-independent local bodies or private sector. It refers to the restructuring of authority so that
 there is a system of co-responsibility between the institutions of governance at the central, regional
and local levels.
Strengths of Centralization:
1. Emphasis bottom up approach
2. Decision making will be democratic
3. Increasement in participation and accountability
4. Decision making will be closer to the public
5. better able to address the local needs effectively
6. good way of training and developing leaders
7. organizational change due to the interactions
Drawbacks of the Decentralization:
1. Worsens the service delivery in the absence of effective controls and oversight
2. deteriorates service quality due to over burden and out of capacity of local government
3. local elites gain undue advantage by overcoming rules
4. creates new ethnic and religious rivalries
5. may lead to regional imbalances

Fundamental of Human Geography:

Agriculture
It is the science and art of cultivating plants and livestock. It came from a word "Agercultura" in which "Ager"
means field and "Cultura" means cultivate.
Types of Agriculture:
Type Definition
 1. Intensive High inputs or yields for given area of land.
2. Extensive Low inputs or yields for given area of land.
3. Commercial Crops are cultivated and animals reared are sold.
4. Substinence Cultivating crops or rearing animals for consumption by the farmer and his family.

5. Arable The cultivating of crops.

6. Pastoral The rearing of animals.
7. Mixed A combination of arable and pastoral.
Physical Influence on Agriculture:
1. Climate:
It includes temperature, air, relative humidity, wind, light and rainfall.
a. Temperature: It affects various growth processes in crops such as seed dormancy breakage, photosynthesis,
transpiration, respiration and seed germination. Plants mature earlier in higher temperature because
photosynthesis and translocation occur faster. Most of the plants cannot grow if the temperature falls below
6®C.
b. Air
Crops require oxygen during respiration to produce energy used in growth and development processes. During
photosynthesis, plants require CO 2to manufacture food.
c. Relative Humidity
Relative humidity is the amount of water vapor air can hold at any given temperature. Relative humidity
influences the closing and opening of stomata regulating water loss in crops during photosynthesis and
transpiration.
d. Light
It influences phototropism, mineral absorption, stomatal movement and translocation. The intensity, quality
and daylength of light affects plant growth and development.
2. Topography
It relates to how difficult it is to till land, soil erosion and poor transportation networks and facilities.
Mechanization of land entirely depends on the land topography. If the land is high than there is more chance of
soil erosion.
3. Soil
A rich soil is the chief requirement of successful agriculture. Soils with poor texture and harsh chemicals are low
in productivity.
Social, Cultural and Economic Influence on Agriculture
1. Market
Relation to market generally determines the character of farming . Places away from the market will generally
grow crops which can afford the cost of transport to the market. Places near large center of population
generally develop market gardening and produce easily perishable goods which can be transported to the
market for short distances.
2. Transportation facilities
Commercial farming is impossible in those regions which are far from the market and is ill-equipped with
transportation facilities.
3. Capital
In the developed country, there is a well developed system of supportive banks, private investors and
government subsidies which means that agriculture is most likely to be capital intensive. In the developing
countries, the system of capital support are less developed and farmers have little capital of their own which
means the agriculture will be labor intensive.
4. Labor
It determines the character of agriculture. Intensive agriculture is labor intensive and shows the human pressure
on the land. Agriculture requires skilled labor that can appreciate the relations of season and soils with the crops
and adopt the required cultural patterns.
5. Commodity prices
Commodity crops earn farmers losses or profits based on the prevailing price of the output that industrial
buyers are willing to pay.
Industry
It refers to production of handy craft to aircraft. It is a group of organizations involved in
producing/manufacturing or handling the same type of product or service. It is a part of the secondary activity.
In a nutshell, industry can be defined as:
1. production of goods
2. extraction of minerals
3. provision of services
Classification of Industries:
1. On the basis of raw material
a. Agro-based Industries
It uses plants and animals based products as their raw materials.
b. Mineral based industries
It is based on mining and use mineral ore as raw materials and are used for heavy machinery and building
materials.
c. Marine based industries
It uses raw material from the forest like wood.
2. On the basis of Size
a. Small-scale industries
It has less capital and technology invested in them with less labor. It is also known as cottage industry.
b. Large scale industry
It is the exact opposite of small scale industries with the large amount of capital invested and advanced
technology used.
Cottage Industry Large Scale Industry
It is based on leisure time. It is based on operation of 24 hours.
The production occurs in small scale. The production occurs in large scale.
There is use of local raw materials. There is use of excessive raw materials
imported from every place.
There is participation of family members. There is large number of participation.
 There is use of traditional tools. There is use of modern machines and tools.

There is low amount of investment. There is high amount of investment.

There is supply on local level. There is supply on global level
3. On the basis of Ownership:
a. Private sector
It is owned and operated by an individual or group of individuals.
b. Public Sector
It is owned and managed by the government.
c. Joint Sector Industries
It is jointly operated by the state and the government.
d. Cooperative Sector Industries
It is operated by the suppliers, producers or workers.
Factors influencing the location of industries:
1. Physical factors
a. Raw materials
Modern industry is so complex that a wide range of raw materials is necessary for its growth and production of
goods. Sometimes the industry of location is simply determined by the location of raw materials. Industries
which use heavy and bulky raw materials in their primary stage in larger qualities are usually located near the
supply of the raw materials.
b. Power
Regular source of power is the requirement for the most of the industries. Most of the industries tend to be
located at the source of power. The main source of power is coal, mineral oil and hydroelectricity.
c. Accessibility
The site of new factory needs to be accessible so that importing of raw materials and exporting of finished
product is easy, safe and at low cost.
d. Water
Many industries are established near rivers, canals and lakes because of water.
e. Climate
Harsh climate is not much suitable for the establishment of industries. There can be no industrial development
in extremely hot, humid or dry or cold climate that is why there is no industries in mountainous region of Nepal.
f. Site
Generally, site should be flat, well adequate transport facilities and cheap. Large areas are required to build
factories. Now, there is a tendency to set up industries in rural areas because the cost of land has risen in urban
centers.
2. Socio-Economic Factors
a. Capital
Modern industries are capital intensive and require huge investment. Companies cannot set up their chosen
industry without investment of money. Capitalist are available in urban centers and this is why big industries are
located in urban centers.
b. Government Policies
Government can greatly influence the location of industry by giving tax incentives, cheap rent and other
benefits, reducing regional disparities and eliminating air and water pollution in certain areas of the country.
c. Labor Supply
It is important in two aspects:
a. Workers in large numbers are often required.
b. People with skill or technical expertise are needed.
Labor intensive industries are located inside the cities because there is a huge pool of potential workers.
d. Market
The entire process of manufacturing is useless until the finished goods reach the market. Nearness to market is
essential for quick selling of manufacture goods because it helps in reducing the transport cost and enables the
consumer to get things at cheaper cost.
e. Banking facilities
Establishment of industries involves daily exchange of crores of rupees which is possible through banking
facilities. So the areas with better banking facilities are better suited to the establishment of industries.
Geography
 Sub-branches Definition
1. Economic Geography It studies the manner in which different products and services are It is a
distributed in the various markets and also studies about the social
distribution of wealth across the planet. science
2. Population It studies the demographic distribution of people and includes the that
Geography study of migration, population growth. focuses
3. Political Geography In studies the political aspects of humans and involves boundaries of on the
the countries. spatial
4. Religious Geography It studies the spread and distribution of religious groups, their culture.

5. Medical Geography It studies the patterns and spread of epidemic and pandemics.

distribution of human and physical phenomena. It is the study of physical world, its inhabitants and interaction
between two.
Geography is divided into two branches
1. Human Geography
2. Physical Geography
1. Human Geography:
It is a branch of the geography which studies patterns and processes that shape the human society.
Sub-branches of human geography:
2. Physical Geography
It studies the physical characteristics of the earth and also studies the characteristics on the earth's surface but
also beneath the earth. It deals with the study of processes and patterns in the natural environment such as the
atmosphere, hydrosphere, biosphere and geosphere.
Sub-branches of Physical Geography:
Sub-Branches Definition
1. Biogeography Study of animals and plants and their distribution and patterns
on the earth's surface.
2. Water-Resource Study of water resources and how the various water resources
Geography are managed and distributed across the physical earth.
3. Climate Geography Study of the weather patterns and how these weather affect
the climate
4. Geomorphology Study of the land and the processes that different land
formations go through
5. Soil Geography Study of the soil
6. Hydrology Study of the amount and quality of water moving
7. Glaciology Study of the glaciers
Scope of Human Geography:
The scope of human geography is very wide. The core concern of human geography as a discipline is to
understand the earth as home of human beings and to study all those elements that have sustained them.
1. Greek and Roman scholars like Aristotle, Herodotus, Strabo recognized the close relationship between man
and his physical environment.
2. The Arab Scholars like Al Masudi, Al Bruni also established the relationship between physical environment
and cultural characteristics.
3. In the classical period of modern geography, German Geographers Humboldt and Ritter focused on the
relationship between social groups and their physical environment. He concluded that the earth and its
inhabitants stand in closest reciprocal relation and one cannot be truly presented in all its relationships without
the other.
4. German Geographer Ratzel established human geography as an independent discipline.
5. French Geographer Vidalde La Blache published " Principles de Geographie Humaine" which has three major
parts:
a. Distribution of men on the globe
b. Forms of civilization
c. Circulation
6. Brunches gave the clear idea of geography of a man with the identification of following scope of human
geography:
a. On the basis of Evolution of Civilization
i. Geography of the first vital necessity
It includes primary needs like food, cloth and shelter.
ii. Geography of the Exploitation
It includes the human activities and efforts in which human beings satisfy their needs based on exploitation of
natural resources.
iii. Geography of Social and Economic needs
It includes interdependence, cooperation, division of labor and civic system.
iv. Political and Historic Needs
It includes description of political and historical events in relation to geographical facts.
b. On the basis of Positive Classification
i. Facts of unproductive occupation of the soil
ii. Facts of plan and animal conquest
iii. Facts of destructive exploitation
7. Finch and Trewath classified the elements of human geography in the three groups:
a. Physical Elements
It includes topography, climate, soil, minerals, water bodies, natural vegetation and animals.
b. Population
It includes growth, distribution, density, migration and composition.
c. Cultural Elements
It includes settlements, agriculture, manufacturing, industry, trade and commerce.
8. Ellsworth Huntngton took a comprehensive view of physical conditions, forms of life and human responses
while determining the elements of human geography. According to him, all elements of bio-physical
environment are interrelated and affect each other and their combined affect is reflected in various responses.
He grouped these human responses into four categories and identified 21 responses as scope of human
geography:
a. Material needs
i. Food and Drink, ii. Clothing, iii. Shelter, iv. Tools and v. Means of Transportation
b. Fundamental Occupation
vi. Hunting, vii. Fishing, viii. herding, ix. Farming, x. Lumbering, xi. Mining, xii. Manufacturing and xiii. Trade and
Commerce
c. Efficiency
xiv. Efficiency, xv. Cultural stimulus and xvi. Recreation
d. Higher Needs
xvii. Government, xviii. Education, xix. Science, xx. Religion and xxi. Art and Literature
Approaches to the study of Human Geography:
a. Systematic Approach
It is also known as nomethic approach. It was introduced by Alexander Von Humboldt. In this approach, a
particular phenomenon is considered for detailed understanding. The study of specific natural or human
phenomenon that gives rise to certain spatial patterns and structures on the earth surface is called the
systematic study. It is divided into four main branches:
1. Physical Geography
It studies the various elements of earth system liker air and their distributions.
2. Biogeography including environmental geography
It focuses on various kinds of forests, grasslands, distribution of flora and fauna, human nature relationships,
quality of living environment and its implications for human welfare.
3. Human Geography
It describe the human population, culture, dynamic social and political aspects.
4. Geographical methods and techniques
It is concerned with methods and techniques for field studies, qualitative, quantitative and cartographic
analysis.
b. Regional Approach
It is also known as ideographical approach. It was developed by Carl Ritter. Region could be classified based on a
single factor like relief, vegetation. Administrative units like states, districts and taluks can be treated as region.
The main sub-branches of regional geography are given below:
1. Regional studies
2. Regional Analysis
3. Regional development
4. Regional planning
Uniqueness and Interdependence of a place
Factors Affecting the Uniqueness of a Place
Factors Description
1. Location It is defined as a particular place or position. It consists of site
and situation.
2. Land Topography It is shape and feature of land surfaces. A place can be located
at hill or mountains or terai.
3. Physical Geography It include landforms, soil and climate. For eg: Australia is
located on island and Mumbai is located on Coastal area.
4. Land use It is defined as the management and modification of natural
environment into built envirionment. For eg: Kathmandu's land
is used for settlement and Dhanusa's land is used for
agriculture
5. Built Environment It refers to the human made environment.

6. Infrastructure It includes road and rail networks, waterways, airports.

7. Demographic It includes age structure, ethnicity

Factors Affecting Interdependence of a place

Factors Description
1. People Migrant workers come from outside
2. Capital Investment from a business based outside the area.
3. Resources Raw materials of one place is transported to another place.

4. Ideas Urban planners, architects, business and artists bring ideas to

shape and change a place.
5. Diffusion The process by which a characteristics spreads across space.

6. Distance Decay The farther away one group is from another the less likely the two
groups are to interact.
Relation of Human Geography with Other Social Sciences:
1. Economics and Human Geography
 Both subject focuses on building theories about spatial arrangement and distribution of economic
activities.
  Both subject examines the economic conditions of particular regions or countries of the world. It deals
with economic regionalization as well as local economic development.
 Both subject examines the history and development of spatial economic structure. Using historical data, it
 Both subject examines how centers of population and economic activity shift, what patterns of regional
specialization and localization evolve over time and what factors explain these changes.
 Bothe subject examines the cognitive processes underlying spatial reasoning, locational decision making,
and behavior of firms and individuals
2. Politics and Human Geography
Both subject focuses on the matters like:

 How and why states are organized into regional groupings, both formally (e.g. the European Union) and
informally (e.g. the Third World)
 The relationship between states and former colonies, and how these are propagated over time, for
example through neo-colonialism
 The relationship between a government and its people
 The relationships between states including international trades and treaties
 The functions, demarcations and policing of boundaries
 How imagined geographies have political implications
 The influence of political power on geographical space
 The political implications of modern media (e.g. radio, TV, ICT, Internet, social networks)
 The study of election results (electoral geography)
3. Population Studies and Human Geography
Both the subject focuses on the subject matters:

 Demographic phenomena (natality, mortality, growth rates, etc.) through both space and time
 Increases or decreases in population numbers
 The movements and mobility of populations
 Occupational structure
 The way in which places in turn react to population phenomena, e.g. immigration
5. Sociology and Human Geography
Both the subject studies the social theory which deals with the social phenomenon and its spatial components,
deals with the spatial interaction among groups and culture, tradition and language of a particular society.
Human and the Environment:
1. Environmental Determinism
It is the belief that the environment i.e. physical factors such as landforms and climate determines the patterns
of human culture and social development. Environmental determinists believe that ecological, climate and
geographical factors are responsible for human cultures and individual decisions. Aristotle and Plato explained
the environmental determinism by using climate factors. The rise of most prominent stage of environmental
determinsim in modern geography in the beginning of the late 19th century when it was revived by Ratzel. It
regarded men as a passive agents who were not free and adapted according to the nature. Humans are
naturalized according to this theory.
2. Possibilism
It began from 1920. It states that the environment sets limitations for cultural development but it does not
wholly define culture. Culture is defined by opportunities and decisions that humans make in response to deal
with such limitations. French Geographer Vidal de la Blache developed this theory as a reaction to
environmental determinism. According to this theory, nature got humanized. Technology, capital and efficient
organizational skills widens limits of the human and expands range.
3. Neo-Determinism
It was put forward by Griffith Taylor. He argued that possibilists had developed their ideas in temperate
environment such as North-Western Europe which had offer several viable alternative forms of human
occupance but such environments are rare in the most of the world and the environment is much more
extreme. This theory shows neither there is a situation of absolute necessity nor is there a condition of absolute
freedom. It states that possibilities can be created within the limits which do not damage the environment. It
attempts to bring a balance nullifying the "either" "or" dichotomy.
Fundamental Concepts of Human Geography
1. Location
It is defined as the particular place or position. It is an important term in geography. Most of the geographic
starts with the study of location. Location is of two types:
a. Absolute Location
It provides a definite reference to locate a place. The reference can be latitude or longitude.
b. Relative Location
It describes a place with respect to its environment and its connection to the other place.
2. Place
It refers to the physical and human aspects of the location. It is associated with toponym, site and situation of
the place. Each place in the world has its own characteristics. Place usually have :
a. Human Characteristics
It includes the human designed cultural features of a place like livelihood, political system, transportation.
b. Physical Characteristics
It includes the description of the things such as mountain, rivers, beaches, etc
3. Accessibility
It is defined as the ability to reach a place with respect to another place. It refers to the ease of reaching
destinations. It determines equal access and opportunity. It determines equal access and opportunity. The main
component of accessibility in geography is location and distance.
4. Spatial Interaction
It involves the wide range of flows between nodes which includes human movement and movement of goods.
These flows are important aspects of urban and regional dynamics. It is explained based on analogy with
Newton's model of the Gravitational Attraction between body.
Central Place Theory
Introduction:
It was first developed by the German Geographer Walter Christaller in 1933 AD. It is a spatial theory in urban
geography that attempts to explain the reasons behind the distribution patterns, sizes and a number of cities
and towns around the world. Christaller developed this theory after the study of settlement patterns in
Southern German which analysed the relationship between settlements of different sizes and related their
economic activites with the population.
Assumptions:
 An even  (flat) terrain 
 Evenly distributed population
 Evenly distributed resources 
 Similar purchasing power
 Preference for the nearest market 
 Equal transportation cost 
 Perfect competition 
Two main concepts of Central Place Theory
As per Walter Christaller, Central Place Theory is based on 2 fundamental concepts which are
“Threshold” and “Range”

Threshold – The minimum population needed to make a service viable at a particular place. If this size
is not reached then a particular activity will not start or it will be closed down.
Range – This is the maximum distance a consumer is willing to travel to purchase good or avail a
service, beyond this distance consumer will not travel as the distance traveled for good/service will
outweigh the benefit. Range has two limits, Upper Limit denotes an area beyond which there will be no
buyer willing to travel. And, Lower Limit denotes an area need for a firm to make profits and have
sufficient demand.

Sizes of settlements/communities as per central place theory

Walter Christaller gave a system with 5 sizes of settlements based on population. The smallest unit is
Hamlet which is considered a rural community and the largest unit is Regional Capital.  The rank order
of central places in ascending order include:
1. Hamlet
2. Village
3. Town
4. City
5. Regional Capital/ Metropolis
The arrangement of the Central places/ settlements:
As transport is equally easy in all direction, each central place will have a circular market area as shown
in C in the following diagram:
However, the circular shape of the market areas results in either un-served areas or over-served areas.
To solve this problem, Christaller suggested the hexagonal shape of the markets as shown in D in the
above diagram. Within a given area there will be fewer high order cities and towns in relation to the
lower order villages and hamlets. For any given order, theoretically, the settlements will be equidistant
from each other. The higher order settlements will be further apart than the lower order ones.
Principles in the arrangement of the central places:

Christaller’s theory gives 3 principles which are the marketing principle, transport principle and
administrative principle for orderly arrangements and the formation of hierarchy. Settlements are
regularly spaced – equidistant spacing between same order centers, with larger centers farther apart as
compared to smaller centers. The market area is hexagonal shaped as it is free from overlapping, most
efficient in both number and function. Three Principles of Christaller for determining distribution of
central places in a region.
 Marketing principle:  If the distribution is entirely based on the range of the good, then it would
result in evenly spaced central places with hexagonal markets area.
 Traffic principle:    If any central place (city) is smaller in size  than expected than it be because of
lower accessibility (not falling on major transport route) and vice-versa
 Separation principle:  Spacing and sizing of Central places can sometimes be distorted due to
socio-political consideration.
The different layouts predicted by Christaller have K-  values which show how much the Sphere of
Influence of the central places takes in — the central place itself counts as 1 and each portion of a
satellite counts as its portion:

1. Marketing Principle (K=3)

2. Transport Principle/ Traffic Principle (K=4)
3. Administrative Principle (K=7)
The three principles of central place theory are as follows
Marketing Principle (K=3): As per this the market area of a higher order occupies one-third (1/3 part)
of the market area of each of the consecutive lower size place(node) which lies on its neighbor. The
lower size nodes (6 in numbers and 2nd larger circles) are located at the corner of the largest hexagon
around the high-order settlement. Each high-order settlement gets 1/3rd of each satellite settlement
(which are 6 in total), thus K = 1 + 6×1/3 = 3.
With K=3 the transport network is not efficient even when the distance traveled is reduced. This is
because of the absence of transport links (network) between the larger places (nodes).
Transport Principle (K=4): This provides for most efficient transport network. High order place half of
the market area of 6 neighboring lower order places located on the edge of the hexagon formed by
high order settlement. There are maximum central places possible. These are located on the main
transport routes connecting the higher order center. The transportation principle involves the
minimization of the length of roads connecting central places at all hierarchy levels. In this system of
nesting, the lower order centers are all located along the roads linking the higher order centers. This
alignment of places along a road leads to minimization of road length. However, for each higher order
center, there are now four centers of immediate lower order, as opposed to three centers under the
marketing principle.

Administrative Principle (K=7): According to K = 7 administrative principle (or political-social

principle), settlements are nested according to sevens. The market areas of the smaller settlements are
completely enclosed within the market area of the larger settlement. Since tributary areas cannot be
split administratively, they must be allocated exclusively to a single higher-order place. Efficient

administration is the control principle in this hierarchy

Criticisms

1. It's assumptions are flawed and unrealistic.

2. Transportation costs are not equal in all direction.
3. Rural market are not evenly distributed.
4. People or resources are never perfectly distributed.
Theory of Agricultural Location
Introduction:
The model was developed by Johann Vonthunen in early 1800s and was translated into English until 1966. It
is also known as "concentric rings theory of agricultural land use" It outlines an ideal state whose plan
revolves around farming practices focusing on which farming makes most profit. It explains the development
of agricultural towns and cities. The main aim of this theory is to show how and why agricultural land use
varies with the distance from the market.
Assumptions:
1. Land must be isotropic.
2. The State must be isolated surrounded by unoccupied wilderness.
3. The soil and climate must be consistent.
4. The transport cost must be proportional to the distance.
5. All the farmers should have equal access to transport.
6. Farmers act to maximize the profit.
7. Farmers are rational.
The Four Rings:
In an isolated state, Von Thunen hypothesized that a pattern of rings around the city would develop:
1. Dairying and intensive farming occur in the ring closest to the city because vegetables, fruit, milk and other
dairy products must get to the market quickly as there was no refrigerator in that time.
2. Timber and firewood in the second ring because before industrialization , wood was a very important fuel
for heating and cooking and wood is very hard to transport.
3. Crops in the third ring because grains last longer than diary products and are much lighter than wood.
4. Livestock in the final ring because they can walk to the central city for sale or butchering.
Modification of the Model:
It was created before factories, highways and roads. Isotropic plain and the central city received a lot of
criticism. The modified model encompassed roads and rivers that might decrease transportation costs to
some locations.

Criticisms:
1. The conditions described in this theory is hardly available in any region of the world.
2. It is not necessary that all types of farming systems as described by Von Thunen exists in all regions.
3. Not only physical but also social, political and cultural factor effect agricultural location.

Population Density and factors affecting it

Population density is the measurement of population per unit area. It is an average number. It is
calculated by dividing the number of people area. It is usually shown as the number of people per square
kilometer.
Population Growth : It is increase in the number of individuals in the population. It is measured in percent
per year.
Population Composition: It is the description of the characteristics of a group of people in terms of factors
such as their age, sex, marital status, education and occupation.
Physical Factors affecting Population Density:
 Factors High Density
1. Relief Low land which is flat. E.g. Ganges Valley
in India. Coastal environments and those
with rivers provide good access and allow
trading to occur encouraging the growth
of economic activities.
2. Resources Areas rich in resources tend to be densely
populated. The availability of natural
resources encourages a higher density of
population to settle there.
3. Climate Areas with temperate climates tend to be
densely populated as there is enough rain
and heat to grow crops.
4. Soil Fertile land is densely populated as food
can be produced.
5. Vegetation Areas with less vegetation help to access
and provide services and make human
inhabitation easy.
6. Natural Regions that experience no or few natural
Disaster disaster are morel likely to have a higher
population density as they are safe.
7. Water supply A reliable water supply encourages a high
population density as water can be used
for drinking, washing, transportation and
irrigation.
Low Density
High land i.e mountainous makes Social,
difficult to construct buildings and Cultural
roads.
and
Areas with few resources tend to
have sparsely populated.
Areas with extreme climates of hot
an cold tend to be sparsely populated
because it makes difficult to grow
crops.
Infertile land is sparsely populated as
people are unable to grow food.
Areas with dense vegetation provide
challenges in terms of access and lack
of services makes human inhabitation
difficult.
Regions that experience regular
natural disaster can discourage
people from settling in that area.
Lack of water supply discourages
people to settle
 Factor High Density
1. Employment Good job opportunities encourage
Opportunities people to settle there as people are
able to secure a regular income.
2. Infrastructure Location with effective infrastructure
are usually densely populated.
3. Security Area with low crime rates are usually
densely populated.
4. Public Services Effective public services encourages
people to settle there.
5. Government A safe and reliable government leads
in high population density.
6. Stability Countries with stable government
tend to be densely populated.
7. Social Group of people want to live close to
each other.
8. Conflict Areas with no conflict tend to have a
high density of population.
Economic Factors that affect Population Density
Human Settlement
Low Density
Limited job opportunities cause
people to migrate as they are
unable to secure regular
income.
Location with little or no
infrastructure is usually sparsely
populated.
Areas with high level of crime
rates are usually sparsely
populated.
Poor public services discourage
people from living in that area.
Government corruption can
lead to a low population
density.
Countries with instable
government have low
population density.
Other groups of people prefer
to be isolated.
Areas with conflict tend to have
low density of population.
It is any form of human dwelling from the smallest house to the largest city. It is place where people live from
isolated farm house to mega city. It can either be temporary or permanent.
Factors affecting settlement:
Settlement is mainly determined by site and situation of a place.
1. Wet Point sites:
Those places which have a good water supply tend to have many settlements.
2. Dry Point Sites
Settlements are also built in those places which are away from the risk of flooding.
3. Defensive site
Settlements are often found on higher grounds so that in the past enemies could be seen from a distance.
4. Aspect
Settlements are also found in the sunny sides of the deep valley.
5. Shelter
Settlements are found in those places which protect from cold winds and rain.
6. Resources
Settlements are found in those places which have resources.
Settlement Types:
On the basis of Volume:
1. Compact or Nucleated Settlement
It is based on farming comprises of houses, religious centers, fields for grazing animals and growing cops
surrounding the village building. The size of these settlement depends on nature and resources of
surrounding country. It has a high degree of caste discrimination. It is found in hunting and fishing
communities.
2. Semi-Compact Settlement
It is a transitional phase in the growth of compact settlement. As the new technology is developing and
population is increasing, the settlement starts taking the shape of compact settlement. It arises due to the
difference of semi-arid regions from humid regions and marginal productive land to that of fertile land.
3. Dispersed Settlement
It is generally found in the extreme climate, hilly tracks, thick forest, grassland, plateaus and infertile
lands. Overpopulation is one of the reasons for dispersed settlements. If a part of the population left the
village to found a new one, they are often found in dispersed rather than a new village.
Settlement Hierarchies
Settlement Definition Number of People
1. Megalopolis When conurbations have joined to +10 million people
become one
2. Conurbation A group of large cities and their suburbs 3-10 million people
that have strong link connecting them
to each other.

3. Metropolis A city and surrounding towns that are in 1-3 million people
close proximity and have started to
merge into each other.

4. Large city A city with large population and many 300000-1 million people
services.
5. City Have wide range of services but not as 100000-300000 people
many as a large city

6. Large town Much more varied range of shops 20000-100000 people

available to villages
7. Town Increase in services 1000-20000 people
8. Village Start to have some basic services 100-1000 people

9. Hamlet It have very few tiny populations and <100 people

few services

10 Isolated dwelling Tend to be farmhouse A few building

Urbanization and urban Settlement
Urban Areas: It is a human settlement with a high population density and infrastructure of built environment. It
is created through urbanization and is categorized by cities, towns, conurbations or suburbs.
Urbanization: It is a process which involve two phases:
a. movement of people from rural to urban places where they involve in secondary activities
b. change in lifestyle that results from leaving the countryside
Urban Settlement: It is a densely populated area comprising mostly man made structures.
Factors or Causes of Urbanization
i. Natural Increase in Population
One important cause of rapid urbanization is the natural increase in population. The number by which the birth
rate exceeds the death rate in urban area gives natural increase in population.
ii. Migration from Rural Areas
In developing countries, urbanization usually occurs when people migrate from village to settle in cities in hope
of gaining a better standard of living. Migration is influence by economic growth and development an by
technological change and by conflict and social disruption.
iii. Boundary Changes
As cities expanded, the outlaying rural areas have been included in the urban areas. They may even continue to
retain the most of the characteristics of villages but they are counted as urban population by virtue of being
classified as urban areas.
iv. Industrialization
It is a trend representing the shift from old agricultural economy to novel non-agricultural economy which
creates modernized society. Through industrial revolution, more people have been engaged in secondary
activities and are attracted to move from rural to urban areas on the account of employment opportunities.
v. Commercialization
Commerce and trade play a major role in urbanization. The distribution of goods and services and commercial
transcations in the modern era has developed the modern marketing institutions and exchange methods that
have tremendously given rise to the growth of town and cities. Commercialization comes with the two
perception that towns and cities offer better commercial opportunities and returns compared to the rural areas.
vi. Social benefit and services
There are numerous social benefit found in the life of towns and cities like education, better living standards,
health care , etc. On this account, more and more people of rural area are prone to migrate into cities and
towns for achieving those benefits.
vii. Modernization and changes in the mode of living
As urban area is becoming more technology known with highly sophisticated communication, infrastructure and
liberalization, people believe that they can lead a happy life in cities. As a result, people migrate to other cities
and the cities grow by absorbing the growing number of people.
Site and Situation
Site
It is the actual location of settlement on the earth. It includes the physical characteristics of the land specific to
the area. It includes landforms, climate, vegetation, availability of water, soil quality, minerals and water. It
leads to the development of large cities but also create challenges people.
Situation
It is the location of a place relative to its surroundings and other places. It includes the factors: accessibility of
the location, extent of a place's connections with other and how close an area may be to the raw material.
Difference between the Site and Situation:
1. Site is the exact location of a city while situation is the surround features which is both man made and
natural.
2. Site has features that are inherent to its location while situation has features that are external to the
settlement.
3. Site is the land that the settlement was build upon while situation contains the surrounding areas of the city.
Region
It is defined as the uniform physical or human characteristics of a place. It is defined as the part of the earth's
surface with one or many similar characteristics that make it unique from other areas.
Types of Region:
i. Formal Region
These are designated by official boundaries such as cities, states, countries and share some uniform
characteristics. For the most part, they are clearly indicated and publicly known.
ii. Functional Region
It usually contains the central point with defined boundaries and the area around is connected via well-
developed network of transportation and communication systems that facilitates the movement of people,
goods and ideas within the system.
iii. Vernacular Region
When places in the world share same characteristics, we tend to imagine these places are being bound by
imaginary boundary. The physical mad do not formally define the boundaries of such regions.
Two Scientific Approaches of Region:
1. Territorial Approach
In this approach, region is seen as an demarcated area which is different from other.
2. Relational Approach
In this approach, regions are connected and are having a wide web of economic, political, social and cultural
regions.
Regional Planning
It deals with the efficient placement of land use activities, infrastructure and settlement growth across a larger
area of land than an individual city or town. It includes the formulating laws that will guide the efficient planning
and management of regions.
Principle of Regional Planning:
1. Resist development in flood plains or earthquake faults.
2. Designate transportation corridors using hubs and considering major infrastructures.
3. Some thought into the various role of settlement in the region may play.
4. Consider designing essential land uses locations including waste disposals.
5. Allocation of the land.
6. Designate green belt land.
Importance of Regional Planning
1. It helps in reducing disparities, promoting growth, promoting sustainable development, economic growth
of collective region based on its potential.
2. It helps to solve the issue of migration to a great extent.
3. It helps in proper utilization of resources.
4. It helps to control the pollution.
5. It helps to reduce the conflicts and wastages of resources.
6. It brings equity.
7. It acts as connecting link in policy areas.

Macroeconomics
Macroeconomics:
It is derived from the word “Makros” which means large. It is defined as the study of aggregate units like
consumption, national income, expenditure, employment, etc. In other words, it studies the economy as the
whole.
Circular Flow of Income:
It is a simple economic model that shows the movement of goods and services and factors of production
between producers and consumers within a economy. It also refers to the flow of goods and services among the
various sectors of the economy balanced by the monetary payments made in exchange for those goods and
services. It is called so because the movement of income and expenditure continues throughout the economy
and repeats itself forming the circular flow of income. In the circular flow model the expenses made by one
sector becomes the income for the other sector and the goods and services produced by the firms is demand
made by the economy.
Assumptions:
1. Household spend their whole income on goods and services produced by the firms.
2. Firms produce goods and services demanded by the household only.
3. In case of two or three sector closed models, there is no inflow or outflow of income and expenditure
from any outside sources.
4. In the case of four sector, the foreign sector consists of imports and exports of goods and services made
by the firm.
There are two kinds of flows generated in transactions :
1. Real flow: It includes the flow of factors of production from the household sector to the business sector
and the corresponding flow of goods and services from the business sector to the household sector.
2. Monetary Model: It includes the flow of rent, wage, interest and profit to the household sector from
business sector for hiring factors of production and on the other hand, the consumption payment flow from
household to the business sector.
 Agents of Circular Model: 1. Household, 2. Business, 3. Government and 4. Foreign
Importance of Circular Flow of Model:
1. It helps in analyzing the problem of disequilibrium.
2. It helps in analyzing the effects of leakages and injection.
3. It creates a link between consumer and producer.
4. It creates a network of markets.
5. It helps to measure the inflationary or deflationary.
6. It highlights the importance of monetary and fiscal policies.
Circular Flow Model in Two Sector Economy
In two sector circular model, there are household and business sector. There is absence of government.
The household sector is source of factors of production like land, labor and capital. Business sector is the
source of goods and services.
Assumptions:
a) There are only two sectors in the economy i.e. household and business.
b) Household spend all its income on consumption i.e. there is no saving.
c) Firms are able to produce exact quantity of goods and services which household sector demands.
d) There is no government intervention.
e) Business sector do not carry out any import or export quantities.
There are two circles in the circular flow model. The inner circle represents the monetary flow and the outer
circle represent the real flow.
a. Real Flow
It indicates the flow of factors of production from household sector to the business sector for producing goods
and services and flow of goods and sectors from business sector to the household sectors for consumption.
b. Monetary flow
It indicates the flow of rent, wage, interest and profit to the household sector from business sector to the
household sector for hiring factors of production. On the other hand, the consumption payment flows from
household sector to the business sector for consuming goods and services.
Three Sector circular Model
In three sector economy, there are household, business and government sector. There is government
intervention. Besides the income and expenditure, there is government purchases or expenditure and taxation
come into play. Government purchases are injections while taxation is leakages.
Assumptions :
a) There are three in the sectors: Household, Business and Government Sector.
b) There is provision of saving.
c) There is government intervention.
d) Business sector do not carry out any import or export activities.
From the view point of the circular flow of income, each sector has dual roles to play in the economy while a
sector receives a certain payment from the other sectors, it pays back to those sectors as well. The circular flow
of income in different sectors can be expressed as follows:
1. Household Sector
It owns factors of production and supplies to business and government sector. It consumes goods and services
produced by the business sector. It supplies factors of production to the business and government sector.
i. Receipts
It receives the factor income in the form of rent, wages, interest and profit from the business sector and
government sector for supplying factors of production. It also receives the transfer payments from the
government sector.
ii. Payment
The income of the household sector flows into the business sector, government sector and capital market in the
form of consumption expenditure, tax and saving respectively.
2. Business Sector
It produces and supplies goods and services in the economy and hires factors of production from the household
sector.
i. Receipts
It includes income from the sale of goods and services from household sector and government sector. It
borrows money from the capital market. It also gets subsidies from the government sector.
ii. Payment
It includes the factors payments and tax payments to the household sector and government sector respectively.
3. Government Sector
It has the authority to pass rules and regulation, laviate taxes to the household sector and business sector, hires
factors of production from the household sector and purchases goods and services from the business sector.
i. Receipts
The major source of the income for the government sector include the taxes paid by the households and
business sectors. It also receives interests and dividends for the investments paid.
ii. Payment
It pays to the business sector in the return for the goods and services purchased and also provides subsidies. It
pays factor payments to the household and also makes transfer payments to the household.
Four Sector Circular Model
It provides a realistic picture of the circular flow in an economy. It studies the circular flow in an open economy
which comprises of the household, business, government and foreign sector. The foreign sector has the
important role in the economy. When the domestic business firm export goods and services to the foreign
markets, injections are made into the circular flow model. On the other hand, when the domestic household
firms or the government imports something from the foreign sector in the circular model. From the view point
of the circular flow of income, each sector has dual roles to play in the economy while a sector receives a certain
payment from the other sectors, it pays back to those sectors as well. The circular flow of income in different
sectors can be expressed as follows:
1. Household Sector
It owns factors of production and supplies to business and government sector. It consumes goods and services
produced by the business sector. It supplies factors of production to the business and government sector.
i. Receipts
It receives the factor income in the form of rent, wages, interest and profit from the business sector and
government sector for supplying factors of production. It also receives the transfer payments from the
government sector.
ii. Payment
The income of the household sector flows into the business sector, government sector and capital market in the
form of consumption expenditure, tax and saving respectively.
2. Business Sector
It produces and supplies goods and services in the economy and hires factors of production from the household
sector.
i. Receipts
It includes income from the sale of goods and services from household sector and government sector. It
borrows money from the capital market. It also gets subsidies from the government sector. It earns income
from the exports.
ii. Payment
It includes the factors payments and tax payments to the household sector and government sector respectively.
It makes import payments to the foreign sector.
3. Government Sector
It has the authority to pass rules and regulation, laviate taxes to the household sector and business sector, hires
factors of production from the household sector and purchases goods and services from the business sector.
i. Receipts
The major source of the income for the government sector include the taxes paid by the households and
business sectors. It also receives interests and dividends for the investments paid.
ii. Payment
It pays to the business sector in the return for the goods and services purchased and also provides subsidies. It
pays factor payments to the household and also makes transfer payments to the household.
4. Foreign Sector
I. Receipts
It receives income from the business sector in return for goods and services imported by later.
ii. Payment
It needs to make payment to the business sector from where imports have been made.
National Income
It refers to the total income of the citizens of a country whether earned within the geographical boundary of the
country or abroad for a certain period of time period usually 1 year. In brief it is the aggregate of all:
a) Wages and salaries including supplements without deducting taxes and social security contributions.
b) Net income from the rent and royalties.
c) Income from interest in profits before deducting income taxes
d) Gross profit before deducting income taxes
Concepts of National Income
Concepts of Definition Formula
National Income

1. Gross Domestic It is total market value of all currently GDPt = p1 t . x 1 t + p2 t . x 2t + p 3 t . x 3 t +…+ p nt . x nt

Product (GDP) produced final goods and services withing p = price of the goods and
the geography boundary of a country during services
the fixed period of time generally a year. In x = quantity of the goods and
order to be included in the goods and services
services must be:
a. Must be produced currently that year.
b. Must be final goods not intermediate
goods.
c. Currently produced capital goods and
inventories.
d. Must be evaluated in the market price
2. Gross National It is the total annual value of goods and GNP= GDP + NFIA
Product (GNP) services produced by the domestically NFIA= Net factor income from
owned factors of production. It comprises abroad
the income earned by the nationals in the
foreign countries but doesn't consider
domestically earned income by foreigners.
3. Net National It is the net output of the economy that is NNP= GNP- D
Product (NNP) calculated after deducting the value of D= Depreciation
depreciation from the GNP
4. Net National at It is the sum of all incomes earned by the NI= NNP- Indirect
factor cost or resource suppliers for the contribution of taxes+Subsidies.
National Income their factor resources which go into the
(NI) annual net of production.
5. Personal It is the measure of the income received by PI= NI-Undistributed Corporate
Income (PI) citizens of a country from all sources in a Profit-Corporate Income Taxes-
year. Social Security
 1. GDP= C+I+G+(X-M)
2. GNP= GDP+ NFIA
3. NNP= GNP- Depreciation
4. NI= NNP- Indirect taxes+ subsidies
5. PI= NI- Undistributed Corporate Profits-Corporate tax- Social Security tax+ Transfer payments from
government+ net interest on public debt
6. DI= PI- direct tax
Methods of Measuring National Income
i. Expenditure Approach
It looks at the demand for output and speaks of the components of the aggregate demand and services. In an
open economy, total demand for goods and services is made up of 4 components:
a. Consumption Expenditure (C)
b. Investment Expenditure.
c. Government Expenditure
d. Net Exports/ Foreign Demands
According to this approach, the GDP can be computed as:
Y=C+I+G+(X-M)
a. Consumption Expenditure
It includes purchase of final goods and services by consumers/ individuals. The purchase includes purchase of
durable goods like stereos, television, computers, etc, semi/non-durable goods like foodstuff, clothing, petrol,
service like medical care, bus ride.
b. Gross Private Investment
It means addition to or replacement of physical stock of production of capital. It consists of fixed, inventory and
residential investment.
i. Fixed Investment: It includes purchase of new factories, tools and machines.
ii. Inventory Investment: It includes goods that business put aside in storage.
iii. Residential Investment: It includes the new housing of the people buy to live in.
c. Government Purchases
It includes spending on the wages of civil servants and soldiers, purchase of computers, tanks, military craft and
investment programmes in roads and hospitals.
d. Net Exports
It is the difference between the value of exports and value of imports. The export includes expenditure made by
foreigners on goods and services of a country exported to other countries. The import includes the expenditure
made by household, firm and government of a country on imported goods and services.
ii. Income Approach
It measures the GDP from a flow-cost- approach. It measures GDP by adding together all the incomes received
by suppliers of factors of production over a fixed period of time normally in one year. Under this method,
income comprises of:
1. Rental Income
It includes all rents received by household for lease of land and other property.
2. Labor income
It includes wages and salaries, commissions, payments in kinds, incentive payments, tips and benefit.
3. Income from Self-Employment
It covers income of those people who are earning a living by selling their services or output but are not
employed.
4. Proprietor's income
It includes rental income, labor income and income earned from interest and profits.
5. Interest Payments
It is the payment made to the owner of capital.
6. Corporate Profits
It is the net income of the business after all other costs such as rent, wage and interest have been deducted
from the total income.
7. Indirect Business Tax
It includes sales tax, VAT, excise duty and property tax.
8. Capital Consumption or Depreciation
It refers to the reduction in the value of assets generally from the wear and tear of the machine.
9. Net Income from Abroad
It is the difference between income earned by the domestic factors of production in foreign territories and
foreign factors of production in the home country.
iii. Production Approach
It is also known as inventory or output approach. It is done through 2 methods:
a. Final Product Approach
In this method, national income is computed by adding together the market value of all final goods and services
produced by the different industries in a country within the given year.
b. Value Added Approach
It estimates national income by considering the values of both intermediate and final output simultaneously. It
simply measures how much each firm adds to the value of an intermediate goods as it moves through the chain
of production.
Importance of National Income:
1. Increase in the national income causes an increase in the material well-being of the country.
2. It gives an idea to understand the living standard of the people.
3. It provides the data which government and external agencies can use in different ways.
4. Policy makers use GDP/GNP to monitor short-terms fluctuations in economic activities and observe
long-run growth trends.
5. It helps in assessing the pace of economic development.
6. It gives an regular estimate of an economy's gross output.
7. It is useful for diagnosing economic ills of a country and suggesting remedies.
 8. It enables to assess intra-sector growth of an economy.
Difficulties in the Measurement of National Income:
a. Statistical Difficulties
i. Unrealistic and Inadequate Statistics
It is difficult to obtain data due to the illiteracy in developing and underdeveloped countries. No proper
accounts are maintained for production and expenditure. Beside this, producers also provide fabricate data in
order to evade from tax.
ii. Existence of Barter System
Even in the era, barter system continues to exist in the backward communities. No transcations are carried out
in monetary terms in barter economy. Under this circumstances, a correct estimation of NI is impossible.
iii. Underground Economy
It includes illegal activities like gambling, smuggling, drugs, etc. These activities are not reported to the authority
for the tax purpose and are excluded from NI account.
iv. Self-Consumed Production
Economies in developing countries are involved in producing goods and services for self-consumption rather for
commercial purpose. Some parts of the produced goods are either consumed by the producer themselves or
bartered for some other goods with consumers or other entities in the market which makes it difficult to
calculate NI.
v. Lack of Occupational Classification
People under developed countries engage themselves in one or more occupations to earn their livelihood.
There is no clear cut classification of occupations and it is very difficult to identify the incomes of the individuals
from specific job or other occupational undertaking.
b. Conceptual Difficulties
i. Problem of Definition
The major problem arises when defining the composition of NI. Ideally NI includes all the goods and services
produced within the certain time period but there are times when it is difficult to decide which goods to include
and which goods to exclude.
ii. Price Changes
Change in price is the greatest challenge in computing national income. The continuous change in the raw
material, production process and finished goods make it difficult to get determined the actual cost of the good
and services when they arrive at the market.
iii. Double Counting
It is one of the issues arise when determining national income. The problem of inaccuracy is seen when the
value of NI is inflated due to the double counting so only the value of final goods must be taken into
considerations.
iv. Income from foreign investors
The problem arises especially with countries where MNC reside. Although MNC are doing well in the host
country, a part of their total income goes to the mother company located in a foreign land So the actual NI of a
host country for the current year cannot be accurate determined.
v. Environmental Damage
It is caused by the depletion of natural resources, pollution and the reduction in the mineral resources. NI
accounting neither prepare the account of natural resources depletion nor measures the impact of
environmental damage in human healthy condition.
Say's Law of Market
Introduction
It is core of the classical theory of employment. Say's law of market is named after Jean Baptiste Say which
states that supply creates its own demand. This law states that aggregate output produces aggregate demand of
same level and argues that prices and wages are flexible maintaining an equilibrium state in self-regulating
economy.
Assumptions:
a) Wage and price are flexible in labor and goods market.
b) There is perfect competition in those markets.
c) There exists full employment in the economy.
d) Money is only medium of exchange.
e) Capital stock and technology of production are given.
f) Total output of the economy is divided into consumption and saving.
g) It assumes long run.
h) There existence of full employment without inflation.
i) There is laissez-faire capitalist economy.
Say's Law in a Barter Economy
Say's law was first explained in barter economy and operates logically for barter economy. In barter economy,
goods are produced for either self-consumption or direct exchange to get some other goods. To supply one
good in barter economy is necessarily to demand another. Hence, every seller is a buyer.
Say's Law in a Money Economy
This law remains valid even in the money economy because classical economists view money only as the
medium of exchange with no active role in influencing the real sector of the economy. In money economy, the
purchase and sales of good is made possible only by money.
Keynes Psychological Law of Consumption
Introduction:
This theory is propounded by J .M Keynes. It explains the relationship between change in income and
corresponding change in consumption and saving. According to this theory, when the income increases
consumption also increases less than increase in income because few part of the income is spent on saving.
Assumption:
1. Psychological and Institutional factors like taste and preference, fashion, price level, population, etc. are
constant.
2. There is existence of normal condition which means no war, conflict and hyperinflation.
3. There must be no government intervention.
Income in million Consumption in million Saving in million
0 40 -40
200 200 0
300 280 20
400 360 40
500 444 60
 Consumption:
It is the act of spending income for purchasing goods and services to satisfy current wants. In other words, it
means the total expenditure made by consumers in the purchase of goods and services.
Consumption Function:
It is the quantitative relationship between consumption and disposable income.
Mathematically:
C=f( Yd, W, Ye, P, I )
C= Consumption Yd= Disposable income

Consumption
a
W= Wealth Ye= Expected future income
P= Price level I= Interest rate
The above function can be written simply as:
C= f(Yd) because disposable income is the most influencing determinant out of the other determinant
Consumption function in the linear form can be written as: C=a+bYd
Determinants of Consumption
Keynes has divided the factors influencing the consumption into two categories:
a. Objective factors
i. Income of the People
There is positive relationship between income and consumption.
ii. Income Distribution
If there is large disparity between rich and poor, the consumption is low because rich people have a low
propensity to consume than poor people. It there is equal income distribution then there is high propensity to
consume.
iii. Price Level
When the price level falls, people will consume more and propensity to consume of the society increases.
iv. Wage level
Increased wage level has the direct effect to the consumption which increases the propensity to consume in the
society.
v. Interest Rate
Higher rate of interest induces people to save more and reduces consumption.
b. Subjective Factors
i. Security Motive
People save more for unforeseen and future needs which ultimately decreases the consumption in the present
time.
ii. Demonstration Effect
People in lower and middle class income groups imitate the life style or consumption pattern of higher income
class people which ultimately increase the consumption.
iii. Increasing Social Status
People are motivated to save more and accumulate large wealth which will increase their social status and helps
to reduce consumption.

Equilibrium Income and Output Determination in Three Sector Economy

The three sector economy consists of three economic units:households, business firm, and the government. The
national output of the economy thus comprises of the monetary value of final consumption (C), final investment
goods (I), and final government purchases (G).
Firms and government employ factors of production to produce goods and services. This creates a factor
market, where factor payments in the form of wage, rent, interest, and profit are paid to the suppliers of
production factors. The summation of such factor payment is termed as national income (NI) at factor cost.

In the three sector economy, households and firms pay taxes to the government, which becomes a source of
income for the government. Households also make saving which gives rise to financial markets. These are the
sources of credit to the business firms for making investment. The government makes purchases with the help
of fund collected through taxes and loan from financial market.

Government Purchases (G)

Since government purchases are assumed to be autonomous, it will be parallel to the output/income line.
Symbolically, it is represented as
G= Ga
Where, Ga is autonomously determined government purchases of goods and services.

Consumption Expenditures
Consumption expenditures of household sectors depend upon their disposable income left after payment of
taxes to the government. Generally, it has a direct relationship with the size of disposable income, which can be
expressed as
C= Ca + λYD
Where, C= Household consumption expenditure
Ca= Autonomous consumption
λ= Marginal propensity to consume
YD= Disposable income

Disposable Income
Disposable income is the income earned by the household sector after the payment of personal taxes net of
governmental transfer payments. It is expressed as
Y D= Y – T n
Where, Tn = Net tax (tax adjusted for governmental transfer payments to individuals)
Thus, net tax can be expressed as
Tn= Ta – Ra
Where, Ta= Gross autonomous tax
Ra= Autonomous transfer payments
Substituting the value of net tax to the equation of disposable income,
YD= Y – (Ta – Ra)
Or, YD= Y – Ta + Ra
Thus,
YD= Y – Ta [since, Ra= 0 by assumption]
As stated earlier, aggregate expenditure (AE) in the three economic model is the sum of household’s
consumption expenditure (C), business investment expenditure (I), and government purchase expenditure (G),
AE can be expressed as
AE = C + I + G
Investment Expenditures
The expenditures made by the business firms on capital goods such as fixed structures, machinery, equipment,
and inventories for the production of goods and services. Although, investment can be both autonomous and
induced, it is assumed to be autonomous in the current scenario. Symbolically, it is expressed as
I= Ia

The Three-Sector AE Line

The aggregate expenditure of the three sectors of the economy has been diagrammatically presented below
Figure: Expenditure line in three sector model

Government affects the consumption, production, and investment made by households and firms through taxes
and other spending. Transfer payments and subsidies upon private sectors affect their income and saving as
well.
Therefore, different fiscal policies can be helpful to describe how equilibrium output/income are determined. In
order to determine economy’s equilibrium income/output, three major fiscal policy models can be specified.

1.First Fiscal Model and Equilibrium Level of Income/Output

The model assumes that government taxes (T) are autonomous. Government follows a lump sum tax policy
which means individuals and firms should pay a fixed amount of tax regardless of their level of income.
The autonomous tax component is represented as
T= Ta
The first fiscal model assumes there are no transfer payments or subsidies provided by the government. This can
be expressed as
R= 0
Where R refers to government transfer payments.

Equilibrium Level of Output/Income: Equations

Equilibrium level of output/income is attained when planned aggregate expenditure is equal to actual
output/income. Symbolically,
Y = AE
Substituting AE with its components, we get
Y= C + I + G
Or Y= Ca + λYD + Ia + Ga
Or Y = Ca + λ(Y – Tn) + Ga
Or, Y – λY= Ca – λTa + Ia + Ga [since, transfer payments= 0; net tax Tn = T= Ta]
Or Y (1 – λ) = Ca – λTa + Ia + Ga
Then, the final equilibrium income is

Thus, the equilibrium level of

income is the sum total of three autonomous expenditures minus autonomous tax multiplied by the multiplier
1/ (1 – λ) = 1/ (1 – MPC)

2.Second Fiscal Model and Equilibrium Level of Income/Output

The second fiscal model differs from the first model in that it takes into consideration the transfer payments
made by the government to individuals. Although the second model assumes that government makes transfer
payments, they are assumed to be autonomous, which means they are not affected by the individual’s level of
income.
Thus, the assumption of government transfer payments in the second fiscal model can be expressed as
R= R0
Where, R= Transfer payments
R0= Fixed or given value of R
The assumptions made in the first fiscal model are followed in the second fiscal model as well. This means that
the second fiscal model also assumes government purchases expenditure is autonomous (G= G 0), taxes are
autonomous (T=T0), and business investment is autonomous (I= I0). The consumption of household depends on
their level of disposable income.
Equilibrium Level of Income/Output: Equations

Considering the assumptions of the model, the equilibrium level of income can be derived with aggregate
expenditure and actual output/income.
Symbolically,https://69e12cce12149ece2d5c76f08b27a8e6.safeframe.googlesyndication.com/safeframe/1-0-
37/html/container.htmlY= AE
Substituting AE with the components,
Y= C + I + G
Or, Y= Ca + λYD + Ia + Ga
Or, Y= Ca + λ (Y – Tn) + Ia + Ga [Tn is the net tax]
Or, Y= Ca + λ [Y – (T – R) + Ia + Ga] [T is the gross tax]
Or, Y= Ca + λ [Y – (Ta – Ra) + Ia + Ga] [Taxes and Transfer payments are autonomous]
Or, Y= Ca + λY – λTa + λRa + Ia + Ga
Or, Y – λY= Ca – λTa + λRa + Ia + Ga
Or, Y (1-λ) = Ca – λTa + λRa + Ga
So, the final equilibrium income is

3.Third Fiscal Model and Equilibrium level of Income and Output

In this model, the tax is divided into two parts: T=Ta+t.Y

where, T=Tax, t.Y= Induced Tax
The transfer payments is autonomous R=Ra
The assumptions made in the first fiscal model are followed in the Third fiscal model as well. This means that the
Third fiscal model also assumes government purchases expenditure is autonomous (G= Ga), and business
investment is autonomous (I= Ia). The consumption of household depends on their level of disposable income.
Equilibrium Level of Input and Output : Equations
AS=AE
Y=C+I+G
Y= a+b(Y-Ta-t.Y+Ra)+Ia+Ga
Y=a+b.Y-b.Ta-b.t.Y+b.Ra+Ia+Ga
Y-b.Y+b.t.Y=a-b.Ta+b.Ra+Ia+Ga
Y(1-b+b.t)=a-b.Ta+b.Ra+Ia+Ga
Y=a-b.Ta+b.Ra+Ia+Ga/(1-b+b.t)
Adopted from: www.businesstopia.com

Equilibrium Income and Output Determination in Two Sector Economy

Keynes has identified two agents: the household and business firms in two sector economy. The model assumes
that there is no intervention of government and no foreign trade exists.Besides this, the two sector model has a
few more assumptions that it satisfies.
Assumptions
i. Prices, wages, and interest rates are constant. 
ii. Output is determined by the total expenditure of the economy.
iii.

Profits earned by the firms are distributed in the form of dividends rather than saving.
State of Equilibrium:Keynes stated that the equilibrium in national income is determined when aggregate
demand/expenditure is equal to aggregate supply.
Aggregate Demand/Expenditure
The aggregate demand/expenditure in the two sector economy is the sum total of the consumption made by
household sector (C) and investment expenditures made by business firms (I). Symbolically, AE for two sector
economy is expressed as:
AE=C+I
The factors that affect household consumption include income and non-income determinants. Generally,
household consumption expenditure is affected by the current level of income. The non-income determinants
include real interest rates, consumer’s wealth, and consumers’ expectation of future prices and incomes.
Keynes assumed that in the short run, current income is the most important factor that affects household
consumption which  can be mathematically expressed as
C= Ca + λ Y
Where, C = Total annual consumption expenditure;
             Ca=Autonomous Consumption
Λ= Marginal propensity to consume (MPC), 0< λ
Y= Total income/output
Investment Expenditure
Investment expenditures are the firms’ expenses occurred during the production of goods and services. These
include expenditures on capital goods like plants, equipment, etc. Investments may be both planned or
intended or unplanned or unintended.In determining the income equilibrium, investment is assumed to be
autonomous. Investments are made based on the firms’ future profitability, regardless of changes in interest
rates. Autonomous investment can be expressed as:
I= Ia
Equilibrium Income and Output: Graphs

The determination of income/output determination in a two sector economy is illustrated in the figures below:

Figure: Two sector equilibrium with Y= AE

The significance of the 45 line is that it consists of points which are at equal distance from the axes.The vertical
line shows aggregate expenditure and the horizontal line is aggregate output.Equilibrium is the point where
aggregate expenditure line Y=AE intersects with the 45-degree line. In the figure, the line AE= C+I intersects the
45-degree line at point E where AE=Y and the equilibrium level of output/income is OYe. Any points to the right
of E shows excess of supply that exceeds the desired level of expenditure i.e. Y> AE=C+I. Similarly, any point left
of E shows excess of demand where AE=C+I
Or, Y= AE
Or, Y= C + I
Substituting C= Ca + λY and I=Ia in Y=C + I, we get,
Y= Ca + λY + Ia
Or, Y = Ca + λY + Ia
Or, Y- λY = Ca + Ia
Or, Y (1-λ) = Ca + Ia
That is, equilibrium income/output,

Thus, the equilibrium income and output (Ye) is equal to the sum of autonomous expenditures (Ca + Ia) times
the multiplier 1/ (1 – MPC).
 Adopted from:"Income and Output Determination: Two Sector Economy," in Businesstopia, January 26,
2018, https://www.businesstopia.net/economics/macro/income-output-determination-two-sector-economy.
Average Propensity to Consume (APC)
The average propensity to consume (ACP) is defined as a ratio of total consumption to total income in a given
period of time. It is calculated by dividing the amount of consumption (C) by disposable income (Y) for any given
level of income.
Symbolically,

APC= C/Y

Where, C= Consumption; Y= Income

For example, when the disposable income of the nation is $180 and consumption expenditure is $170, we can
calculate APC as

APC= 170/180
= 0.92 or 92%

This shows that out of the total disposable income for the year, 92% will be used for consumption while, the
rest is used for saving. The APC declines as income increases because the proportion of income spent on
consumption decreases.
This can be explained with the diagram below
In the figure, CC represents the consumption curve. At point E,

APC=EY/OY

Thus, APC implies a point on the curve C which indicates the ratio of income and consumption. The CC curve is
made up of a series of such points.
Important Points of APC:
1. APC is more than 1 (APC>1) when aggregate income is less than aggregate consumption.
 2. APC is equals to 1 when aggregate income is equal to aggregate consumption.
3. APC is less than 1 when aggregate income is greater than aggregate consumption.
4. APC can never be zero because consumption can never be zero at any level of income.
Marginal Propensity to Consume (MPC)
The marginal propensity to consume (MPC) is defined as the ratio of the change in consumption to the change
in income. It is also referred to as the rate of change in the APC that occurs as a change in income. It is
calculated by dividing the change in consumption (ΔC) by the change in income (ΔY).

Symbolically,

MPC=ΔC/ΔY

Where, ΔC= Change in consumption; ΔY= Change in income

For example, if

This implies that with an increment of one extra dollar of disposable income, the household will spend $83 and
save $17.

The marginal propensity to consume can be explained using the diagram below
In the diagram, MPC is measured by the slope of the consumption curve. Here,
MPC=NQ/RQ

Generally, it is assumed that value of MPC for the richer sector of the economy would be less than that for the
poorer section. This means, if income increases by $1 for both the parties, the propensity to consume would be
less for the richer section than the poorer section.

Important Points of MPC:

1. The value of MPC is between 0 and 1. If the entire additional income is consumed, i.e. AS=0, then MPC=1. If
the additional income is saved i.e. AC=0 then MPC=0.
2. MPC of poor is more than that of rich because poor people spend their most of the income is consumption as
their most of the needs are still unfulfilled.
3. MPC of developing countries is high than MPC of developed countries.
4. MPC falls with successive increase in income.
Difference Between APC and MPC:
APC MPC
i. It is the ratio of consumption to a. It is the ratio of change in
corresponding levels of income. consumption to change in income.
ii. It can be more than one as long as b. It cannot be more than one as
consumption is more than national change in consumption cannot be
income. more than change in income.
iii. When income increases, APC falls e. When income increases, MPC falls
but at lower rate. at faster rate.
iv. APC=C/Y d. MPC=dC/dY
Some Parts are adopted from: www.businesstopia.com
Marginal Efficiency of Capital (MEC)
It refers to the expected rate of profit or the return from investment over its cost. It is the highest return that
can be yielded from the additional unit of the capital asset. It was first introduced by J.M Keynes in 1936 in
order to analyze the profitability of the prospect ventures. It is based on two factors:
1. Prospective yield from capital assets
The term prospective yield is the aggregate net return the investor expects to receive on the sale of capital
assets after the deduction of running costs incurred for the purchase of capital assets considering its total
expected life.
Usually, when the total expected life of the capital asset is divided into a series of periods, generally years, the
annual return is determined. This is represented as Q1, Q2, Q3… Qn and are termed as annuities.
2. Supply price of this asset
The investor has to consider the supply price of asset that he is planning on investing. Supply price of asset
refers to the cost incurred for the acquisition of the capital asset. Here, the cost incurred is for the purchase of
or production of a new asset and not the price of any of the existing assets.
The present value of a series of expected income from the invested capital asset throughout its life span is
expressed as

Where,

SP= Supply price of new capital asset;

R1 + R2 + … + Rn = Return received annually;
r= Rate of discount applied each year;

R/ (1+r) = Current value of annuity discounted at rate r.

The concept of marginal efficiency of capital can be illustrated with a numerical.

For instance,
Expected lifespan of capital asset= 2 years

Supply price of capital asset= $ 3000

Expected Yield (first year) = $1100

Expected Yield (Second year) = $1210

Then, marginal efficiency of capital (r) is calculated as

SP= R1/ (1+r) + R2/ (1+r)2

2000/ (1+r) = 1100/ (1+e)2 + 1200
Thus, r= 10%

Taking r= 1/10

SP= 1100 + 1100/ (1+1/10) = 1000 + 1000/ (1+1/10) 2 = 2000

From the above calculation, we can it may be observed that

1. When the expected yield increases to Rn, rate of discount increases

2. Rate of discount or MEC decreases when supply price of capital asset increases with a given amount of
expected annual return on capital asset, and vice versa.
Thus, prospective yields have a direct effect on MEC whereas, supply price has an inverse effect. This means that
the rate of return over cost may vary as a result of changes in cost or change in the amount of return. Investors
would be willing to make investments only when the return from prospective capital investment is greater than
the supply price.
Decision Rule: Once MEC of the capital is estimated, investment decision is made by comparing with the market
rate of interest.

i. If MEC>r, then the investment project is acceptable.

ii. If MEC=r, then the project is acceptable on non-profit consideration.

iii. If MEC<r, then the project is rejected.

Factors causing a shift in the Marginal Efficiency of Capital

There are a number of factors that are responsible that cause a shift in the investment demand function. Some
of the most prominent factors include:

Cost of capital
If the cost of capital is cheaper, investment is more attractive and vice versa.

Change in technology
Changes in technologies can make investments more attractive with attractive future returns on investments
made in the technological sector.
Demand for goods and services
Increase in demand for goods and services increase the profitability of the companies, and in return, increase
the profitability of capital investments.

Tax rates
The tax rates imposed by the government affects the volume of investment. Higher taxes discourage investment
while the government sometimes offers tax breaks to boost investment in the economy.

Facilities for finance

If the financial institutions provide easy loan and other facilities at relatively low interest rates, it boosts
investment.

Future trade expectations

If any business venture has good future prospect towards profitability, it encourages investment in those
business sectors that yield higher rates of return in the future.

Marginal Rate of Investment (MEI)

It is the rate of return expected from a unit of investment. It is the expected rate of return on investment as
additional units of investment are made under specified conditions and over a period of time. Investment is
attractive only if the MEI's higher than the market rate of interest.
Difference between MEC and MEI

MEC MEI

It is based on given supply price for It is based on the induced change in

capital. the price due to the change in demand
for capital.

It represents rate of return on all It represents the rate of return on just

successive units capital without regard those units of capital and above the
to existing capital. existing capital.

In MEC, the capital stock is taken on In MEI, the amount of investment is

the horizontal axis of diagram. taken on the horizontal axis of the
diagram.
It is a stock concept. It is a flow concept.

It determines the optimum capital It determines the net investment of

stock in an economy at each level of the economy at each interest rate
interest rate. given the capital stock.

Some parts are adopted from: www.businesstopia.com

Investment

Investment is an asset or item acquired with the goal of generating income or appreciation. It is also the
purchase of goods that are not consumed today but are used in the future to create wealth.
At the macro level, investment comprises of three major factors:
 Investment decisions made by business firms and organizations
 Saving decisions made by the consumers
 Decision on supply of investment goods by the producers of capital goods

Types of Investment
Generally, investment can be classified into two types. They are induced investment and autonomous
investment.

Induced Investment
An investment influenced by expected profit or rising levels of income in the economy is termed as induced
investment. The factors that affect profits such as prices, wages, and interest influence induced investment.
Likewise, it is also affected by demand. At higher levels of income, consumption expenditure (.i.e. demand) also
tends to increase. Increased demand raises the expected profitability of the producers who are consequently
induced to make more investment.
Thus, induced investment is positively related to the levels of income in an economy. It increases with the rise in
income and falls as income declines.

The diagram below provides a clear explanation

The diagram shows that with the increase in the level of income from Y 1 to Y2, the level of induced income also
increased from I1 to I2.
Autonomous Investment
An investment not influenced by expected profitability of level of income is termed as autonomous investment.
It is an investment expenditure made by the government with a view of promoting the level of aggregate
demand in the economy.
When the level of aggregate demand falls short of the aggregate supply, the government tends to push up the
level of aggregate demand through various governmental investment expenditures. Such investment is thus not
influenced by profitability and so is independent of the level of income.

Diagrammatically,

OI is the level of autonomous investment and the horizontal line IIa indicates the Oi level of investment that
remained unaffected by the level of income.
Determinants of Investment
Induced investment is influenced by endogenous factors such as income level, propensity to consume, stock of
fixed capital, etc. While autonomous investment is influenced by exogenous factors. Since gross investment in
the economy is the sum of induced investment and autonomous investment, it is determined by both
endogenous and exogenous factors.According to Keynes, investment rate in the economy is mainly influenced
by two factors, marginal efficiency of capital and rate of interest.

Marginal Efficiency of Capital (MEC)

Marginal efficiency of capital is defined as the productivity of capital. Generally, marginal efficiency of capital
shows the cost of capital asset and the expected rate of return from additional investment made. If the rate of
return on any prospective investment is greater than the cost of investment, the entrepreneur is bound to make
the investment and vice versa.

Thus, Keynes pointed out MEC as an important factor in capital investment and highlighted on the following:

 If MEC > r, then the investment project is acceptable

 If MEC = r, then the investment project is acceptable on a non-profit basis
 If MEC < r, then the investment project is rejected
Rate of Interest
Rate of interest refers to the cost of investment. If the rate of interest is high, investment is expensive. On the
contrary, if the rate of interest is low, investment is considered to be cheaper. This shows that an inverse
relationship exists between rate of interest and the profitability of investment. Subsequently, an inverse
relationship exists between rate of interest and investment.

Classical economists considered that investment mainly depends on the rate of interest. However, Keynes
emphasized on the marginal efficiency of capital as the most important factor that determines the investment.
Since, interest rate normally remains constant, MEC is the determining factor of investment.

Adopted from: www.businesstopia.com

Monetary Policy

It is the central bank's policy to manage the supply of money with a view to achieve predetermined
macroeconomic goals. Monetary policy is an economic policy that manages the size and growth rate of the
money supply in an economy. It is a powerful tool to regulate macroeconomic variables such as inflation and
unemployment. Monetary policy aims at influencing the economic activity in the economy mainly through two
major variables, i.e., (a) money or credit supply, and (b) the rate of interest.

Types of Monetary Policy:

1. Contractionary Monetary Policy

Central banks use contractionary monetary policy to reduce inflation. They reduce the money supply by
restricting the volume of money banks can lend. The banks charge a higher interest rate, making loans more
expensive. Fewer businesses and individuals borrow, slowing growth.
2. Expansionary Monetary Policy

Central banks use expansionary monetary policy to lower unemployment and avoid recession. They increase
liquidity by giving banks more money to lend. Banks lower interest rates, making loans cheaper. Businesses
borrow more to buy equipment, hire employees, and expand their operations. Individuals borrow more to buy
more homes, cars, and appliances. That increases demand and spurs economic growth.

Objectives of Monetary Policy:

Inflation

Monetary policies can target inflation levels. A low level of inflation is considered to be healthy for the economy.
If inflation is high, a contractionary policy can address this issue.

Unemployment

Monetary policies can influence the level of unemployment in the economy. For example, an expansionary
monetary policy generally decreases unemployment because the higher money supply stimulates business
activities that lead to the expansion of the job market.

 
Currency exchange rates

Using its fiscal authority, a central bank can regulate the exchange rates between domestic and foreign
currencies. For example, the central bank may increase the money supply by issuing more currency. In such a
case, the domestic currency becomes cheaper relative to its foreign counterparts.
T o o l s o f M o n e ta ry P o l i cy

Interest rate adjustment

A central bank can influence interest rates by changing the discount rate. The discount rate (base rate) is an
interest rate charged by a central bank to banks for short-term loans. For example, if a central bank increases
the discount rate, the cost of borrowing for the banks increases. Subsequently, the banks will increase the
interest rate they charge their customers. Thus, the cost of borrowing in the economy will increase, and the
money supply will decrease.

Change reserve requirements

Central banks usually set up the minimum amount of reserves that must be held by a commercial bank. By
changing the required amount, the central bank can influence the money supply in the economy. If monetary
authorities increase the required reserve amount, commercial banks find less money available to lend to their
clients and thus, money supply decreases.

Commercial banks can’t use the reserves to make loans or fund investments into new businesses. Since it
constitutes a lost opportunity for the commercial banks, central banks pay them interest on the reserves. The
interest is known as IOR or IORR (interest on reserves or interest on required reserves).
 

Open market operations

The central bank can either purchase or sell securities issued by the government to affect the money supply. For
example, central banks can purchase government bonds. As a result, banks will obtain more money to increase
the lending and money supply in the economy.
R o l e o f M o n e ta ry P o l i cy i n D ev el o p i n g c o u n tr i e s :

1. Developmental Role:
In a developing economy, the monetary policy can play a significant role in accelerating economic development
by influencing the supply and uses of credit, controlling inflation, and maintaining balance of payment.
Once development gains momentum, effective monetary policy can help in meeting the requirements of
expanding trade and population by providing elastic supply of credit.
2. Creation and Expansion of Financial Institutions:
The primary aim of the monetary policy in a developing economy must be to improve its currency and credit
system. More banks and financial institutions should be set up, particularly in those areas which lack these
facilities.
The extension of commercial banks and setting up of other financial institutions like saving banks, cooperative
saving societies, mutual societies, etc. will help in increasing credit facilities, mobilising voluntary savings of the
people, and channelising them into productive uses.
It is also the responsibility of the monetary authority to ensure that the funds of the institutions are diverted
into priority sectors or industries as per requirements of be development plan of the country.
3. Effective Central Banking:
To meet the developmental needs the central bank of an underdeveloped country must function effectively to
control and regulate the volume of credit through various monetary instruments, like bank rate, open market
operations, cash-reserve ratio etc. Greater and more effective credit controls will influence the allocation of
resources by diverting savings from speculative and unproductive activities to productive uses.
4. Integration of Organised and Unorganised Money Market:
Most underdeveloped countries are characterized by dual monetary system in which a small but highly
organised money market on the one hand and large but unorganised money market on the other hand operate
simultaneously.
The unorganised money market remains outside the control of the central bank. By adopting effective
measures, the monetary authority should integrate the unorganised and organised sectors of the money
market.
5. Developing Banking Habits:
The monetary authority of a less developed country should take appropriate measures to increase the
proportion of bank money in the total money supply of the country. This requires increase in the bank deposits
by developing the banking habits of the people and popularising the use of credit instruments (e.g, cheques,
drafts, etc.).
6. Monetisation of Economy:
An underdeveloped country is also marked by the existence of large non-monetised sector. In this sector, all
transactions are made through barter system and changes in money supply and the rate of interest do not
influence the economic activity at all. The monetary authority should take measures to monetise this non-
monetised sector and bring it under its control.
7. Integrated Interest Rate Structure:
In an underdeveloped economy, there is absence of an integrated interest rate structure. There is wide disparity
of interest rates prevailing in the different sectors of the economy and these rates do not respond to the
changes in the bank rate, thus making the monetary policy ineffective.
The monetary authority should take effective steps to integrate the interest rate structure of the economy.
Moreover, a suitable interest rate structure should be developed which not only encourages savings and
investment in the country but also discourages speculative and unproductive loans.
8. Debt Management:
Debt management is another function of monetary policy in a developing country. Debt management aims at-
(a) deciding proper timing and issuing of government bonds, (b) stabilising their prices, and (c) minimising the
cost of servicing public debt.
The monetary authority should conduct the debt management in such a manner that conditions are created “in
which public borrowing can increase from year to year and on a big scale without giving any jolt to the system.
And this must be on cheap rates to keep the burden of the debt low.”
However, the success of debt management requires the existence of a well- developed money and capital
market along with a variety of short- term and long-term securities.
9. Maintaining Equilibrium in Balance of Payments:
The monetary policy in a developing economy should also solve the problem of adverse balance of payments.
Such a problem generally arises in the initial stages of economic development when the import of machinery,
raw material, etc., increase considerably, but the export may not increase to the same extent.
The monetary authority should adopt direct foreign exchange controls and other measures to correct the
adverse balance of payments.
10. Controlling Inflationary Pressures:
Developing economies are highly sensitive to inflationary pressures. Large expenditures on developmental
schemes increase aggregate demand. But, output of consumer’s goods does not increase in the same
proportion. This leads to inflationary rise in prices.
Thus, the monetary policy in a developing economy should serve to control inflationary tendencies by increasing
savings by the people, checking expansion of credit by the banking system, and discouraging deficit financing by
the government.
11. Long-Term Loans for Industrial Development:
Monetary policy can promote industrial development in the underdeveloped countries by promoting facilities of
medium-term and long-term loans to tire manufacturing units. The monetary authority should induce these
banks to grant long-term loans to the industrial units by providing rediscounting facilities. Other development
financial institutions also provide long-term productive loans.
12. Reforming Rural Credit System:
Rural credit system is defective and rural credit facilities are deficient in the under-developed countries. Small
cultivators are poor, have no finance of their own, and are largely dependent on loans from village money
lenders and traders who generally exploit the helplessness, ignorance and necessity of these poor borrowers.
The monetary authority can play an important role in providing both short-term and long term credit to the
small arrangements, such as the establishment of cooperative credit societies, agricultural banks etc.
Conclusion:
It is true that monetary policy in a developing economy can play a positive role in facilitating the process of
economic development by influencing the supply and use of credit through well- developed credit institutions,
checking inflation, maintaining balance of payments equilibrium, providing loan facilities to industrial and
agricultural sectors, and so on.
But it must be clearly borne in mind that the role of monetary policy in economic development is secondary and
indirect, and not primary and direct. The fundamental problem of underdeveloped countries is that of
inadequate saving which cannot be solved merely by creating financial institutions. The growth of saving
basically depends upon the increase in productive capacity and income of the country.
Financial institutions only provide facilities to encourage savings and smoothen the process of economic
development; they are not the primary movers of economic development. A.S. Meier and Baldwin put it, “The
currency and credit system must be responsive to the stimuli of development, but monetary and financial
institutions in themselves cannot be expected to be the primary and active movers of development in a direct
sense
A d o p t ed f ro m :

https://www.economicsdiscussion.net/monetary-policy/monetary-policy-meaning-objectives-scope-role-and-
targets-economics/31314

https://corporatefinanceinstitute.com/resources/knowledge/economics/monetary-policy/

https://www.thebalance.com/what-is-monetary-policy-objectives-types-and-tools-3305867

Fiscal Policy

Fiscal policy is a policy under which the government uses its expenditure and revenue programmes to produce
desirable effects and avoid undesirable effects on the national income, production and employment. In ordinary
words, fiscal policy refers to a policy that affects macroeconomic variables, like national income, employment,
savings, investment, price level, etc. It is also know as budgetary policy.

Objectives of Fiscal policy:

1. Optimum allocation of economic resources. The aim is that fiscal policy should be so framed as to increase
the efficiency of productive resources.To ensure this, the government should spend on those public works which
give the maximum employment.

2. Equitable distribution of wealth and income. It means that fiscal policy should be so designed as to bring
about reasonable equality of incomes among different groups by transferring wealth from the rich to the poor.
3. Maintain price stability. Deflation leads to a sharp decline in business activity. On the other extreme, inflation
may hit the fixed income classes hard while benefiting speculators and traders. Fiscal policy has to be such as
will maintain a reasonably stable price level thereby benefiting all sections of society.

4. Achievement and maintenance of full employment because through it most other objectives are
automatically achieved.

Types of Fiscal Policy:

1.Expansionary fiscal policy: It is defined as an increase in government expenditures and/or a decrease in taxes
that causes the government's budget deficit to increase or its budget surplus to decrease. 

2.Contractionary fiscal policy: It is defined as a decrease in government expenditures and/or an increase in
taxes that causes the government's budget deficit to decrease or its budget surplus to increase.

Instruments of Fiscal Policy:

1. Tax

It is a compulsory contribution made by the people and entity to the government. It is one of the major sources
of the government revenue which is imposed by the government at various rates depending upon its policy. By
changing the tax rates, the government can significantly affect the behavior and operation of economic agents
and hence influence the targeted policy variables such as economic growth, employment, price etc.
Increasement in the tax decreases aggregate demand whereas reduction in tax rate increases the disposable
income of the people and hence aggregate demand increases.

2. Government Expenditure
Government expenditures include normal government expenditures, capital expenditures on public works,
relief expenditures, subsidies of various types, transfer payments and social security benefits. During inflation,
the best policy is to reduce government expenditure in order to control inflation. While expenditures are
reduced, attempts are made to increase public revenues to generate a budget surplus.

3. Government Borrowing

If the government exceeds revenue, it is financed through borrowing. Government borrows from the following
sources:

a. From banking and non-banking sectors through issuing treasury bills, development bonds and other
government securities.

b. From other Country and international agencies like IMF, World Band, etc.

During inflation, borrowing becomes necessary. In a period of inflation, public debt has to be managed in such a
way as reduces the money supply in the economy.

Significance of Fiscal Policy:

1. To mobilize Resources

2. To accelerate the rate of growth.

3. To encourage the socially optimal investment.

4. Inducement to investment and capital formation.

5. Provide more employment opportunities.

6. Promotion of Economic Stability.

7. Reduction of inequality.

8. Subsidies in production

Some parts are adopted from: https://www.economicsdiscussion.net/fiscal-policy/fiscal-policy-objectives-and-

instruments-trade-cycle-control/14669

Inflation

It is the situation of continuous increase in price of the goods and services during which the quantity of money
increases but the value of money decreases.

Important Characteristics of Inflation:

1. It is regular and continuous.

2. It is cumulative.

3. It is the situation of the increase in general price level not the increase in individual price.

4. The supply of goods and services is less in comparison to their demand.

Measurement of Inflation:
Inflation is measured in percentage which is obtained by calculating the change in percentage of current price
index over the previous one. The price index is developed by carrying out a survey on the basis of actual survey
on market prices of various goods and services. These goods and services are put together into ‘market basket’.
The cost of identical market basket today is compared to the cost of identical basket in the previous year or a
base year in order to determine the rate of inflation.

1. Consumer Price Index (CPI)

It is an measure of inflation which measures changes in price from the purchasers’ perspective. It is a measure
of price changes in consumer goods and services such as food, clothing, gasoline and automobiles but excludes
housing costs and mortgage interest payments. It reflects changes in the prices of a market basket of goods and
services purchased by consumers (individuals and households). CPI helps in the measurement of cost of living of
urban consumers.

CPI is a statistical estimate constructed with the help of prices of items that represent the economy, whose
prices are collected periodically. The annual percentage change in CPI is taken as a measure of inflation.

Thus,
Where,
CPI1 = CPI in previous year
CPI2 = CPI in current year
Calculating CPI
Calculation of CPI and inflation requires data on prices of goods and services in large scale. But, for the simple
understanding, let us consider a simple economy in which consumer goods include bread and egg.

A step-wise calculation on CPI and inflation is explained below:

Step 1: Determination of basket of goods and services
Suppose, the market basket of a typical consumer contains 4 breads and 2 eggs.

Step 2: Determination of prices

Year Per unit price of Bread ($) Per unit price of Egg ($)

2005 1 2

2006 2 3

2007 3 4

Step 3: Computation of cost of basket of goods in each year

The costs of market basket is calculated with the help of individual prices and relative quantity of goods.

Year 2005: ($1 per bread x 4 breads) + ($2 per egg x 2 eggs) = $8 per basket.
Year 2006: ($2 per bread x 4 breads) + ($3 per egg x 2 eggs) = $14 per basket.

Year 2007: ($3 per bread x 4 breads) + ($4 per egg x 2 eggs) = $20 per basket.
Step 4: Selection of base year (year 2005 in this case) and computation of CPI
Taking 2005 as the base year, and using the formula of CPI, we compute CPI for each given year as

Year 2005: ($8 / $8) x 100 = 100

Year 2006: ($14 / $8) x 100 = 175

Year 2007: ($20 / $8) x 100 = 250

Step 5: Computation of inflation rate using CPI

Using CPI from the above calculation and the formula of inflation, we derive inflation rate for each year

Inflation in 2006: (175 – 100) / 100 x 100 = 75%

Inflation in 2007: (250 – 175) / 175 x 100 = 43%

2.Product Price Index (PPI)
Product Price Index (PPI), also referred to as Wholesale Price Index (WPI), measures the average price changes
of goods and services over time at wholesale level. In other words, PPI measures price change from the
viewpoint of domestic producers.

PPI or WPI is an index of prices paid by retailers for the products that they would resale to the final consumers.
It monitors the price changes made by manufacturers and wholesalers before the products reach the final
consumers.

3.GDP Deflator
GDP deflator measures the changes in the overall prices of newly produced goods and services that are ready
for consumption. It is an important economic metric that helps to determine the rate of inflation by converting
output measured at current market prices into constant base year prices.

In other words, GDP deflator measures the relationship between nominal GDP (total output measured at
current prices) and real GDP (total output measured at constant base year prices). It measures the current level
of prices relative to the level of prices in the base year.

It is not based on a fixed market basket of products so it takes into account the change in consumption patterns
of consumers as a result of newly manufactured products and services.

The GDP deflator is simply nominal GDP in a year divided by real GDP in that year, multiplied by 100.
Thus,

Calculating GDP Deflator

A step-wise explanation of the GDP deflator is given below:
Step 1: Determination of basket of goods and services
Suppose, the market basket of a typical consumer contains bread and egg.

Step 2: Determination of prices

Per unit price of Quantity of Per unit price Quantity of

Year Bread ($) Bread of Egg ($) Egg

2005 1 100 2 50

2006 2 150 3 100

 2007 3 200 4 150

Step 3: Computation of Nominal GDP

Year 2005: ($1 per bread x 100 breads) + ($2 per egg x 50 eggs) = $200

Year 2006: ($2 per bread x 150 breads) + ($3 per egg x 100 eggs) = $600

Year 2007: ($3 per bread x 200 breads) + ($4 per egg x 150 eggs) = $1200

Step 4: Computation of Real GDP

Taking 2005 as the base year, we calculate real GDP as

Year 2005: ($1 per bread x 100 breads) + ($2 per egg x 50 eggs) = $200

Year 2006: ($2 per bread x 150 breads) + ($2 per egg x 100 eggs) = $350

Year 2007: ($3 per bread x 200 breads) + ($2 per egg x 150 eggs) = $500

Step 5: Computation of the GDP Deflator

Using the above mentioned formula of GDP Deflator, we derive

Rate of Inflation in 2006: (171 – 100) / 100 x 100 = 71%

Rate of Inflation in 2007: (240 – 171) / 171 x 100 = 40.35%

After computation of various price indices, rate of inflation is calculated using the following formula:
Where,

Pt = Price index in current (t) period

Pt – 1 = Price index of previous (t – 1) period

4. Inflationary Gap

It is also known as expansionary gap. It is the difference between the real GDP and the full employment real
GDP. It is related to a business cycle expansion and arises when the equilibrium level of an economy's aggregate
output is greater than the output that could be produced at full employment.
Causes of Inflation:

a. Demand Pull Inflation

Inflation caused due to excessive demand is termed as demand pull inflation. It exists in the economy when
overall price of goods and services increase due to increase in aggregate demand, but the aggregate supply
remains the same.
When the economy is at full employment, it is not possible to produce goods and services any further because
the available resources have been optimally utilized. In this case, the supply of commodities is limited, but the
demand is increasing. Consequently, the price of the commodity rise and leads to inflation.
In the diagram, the horizontal line shows quantity (AD & AS), whereas the vertical line shows price. As shown in
the figure, aggregate demand (AD1) intersects aggregate supply (AS) at point A where, the equilibrium price
level is P1 and the quantity is Q1. When the aggregate demand increases, the initial AD1 curve shifts rightwards to
AD2 and AD3 which intersects the initial AS curve at point B and C in which the new equilibrium price level are
P2 and P3 respectively.
The increase in price from P1 to P2 and P3 is known as semi inflation. The price rise from P1 to P2 and P3 is because
of the rise in aggregate demand for goods and services at a given supply situation. Corresponding to the P 3 level
of price level, the economy has reached full employment level. So, the aggregate supply curve (AS) becomes
vertical.
Further rise in AD to AD4 increases the price to P4 but there is no increase in output since, the economy is at full
employment. Such increase in price is known as inflation. As shown in the diagram, the price continues to rise if
the aggregate demand keeps increasing.
Causes of Demand Pull Inflation
Some of the factors contributing to demand pull inflation are explained below:

1. Increase in money supply

When the central monetary authority of the country supplies more money, interest rates decline which leads to
more investment and leads to increase in income. Subsequently, demand increases, resulting in price rise.

2. Increase in government expenditure

Increase in government expenditure raises the income level of the people. Increase in income increases the
expenditure (demand) of the households and shifts the demand curve upwards. But, at the given level of
output, the growing needs of people cannot be met, which leads to an increase in general prices of
commodities.
3. Increase in private expenditure
Total private expenditure has two components:consumption and investment. An increase in consumption
directly leads to an upward shift in demand curve. Similarly, increased investment leads to more job
opportunities and hence higher income level which also increases the aggregate demand. Consequently, the
price level rises.
4. Reduction in taxes
Reduction in direct taxes lead to higher level of disposable income which increases the aggregate demand of
households and individuals. At a fixed level of supply, a higher demand leads to inflation.

5. Increase in net exports

Increase in net export means more inflow of foreign currency which increases the income level of people. This
leads to an increase in aggregate demand. But, at a given level of output, price levels rise as the demand is high
but supply is limited. Similarly, more export and less import may result in shortage of commodities in the
domestic market. As a result, demand increases but supply remains same, so prices rise.

6. Deficit financing
When governmental expenses are in excess to its revenue, deficit of balance occurs. In order to level of deficit
balance, government prints more money as a solution, which leads to inflation. Such situation occurs during war
or internal conflicts.

b. Cost Push Inflation

Inflation caused due to an increase in the cost of production is known as cost push inflation. When
manufacturing firms face higher production costs, they usually raise the price of their products to maintain their
profit margins which causes cost push inflation.

Cost push inflation occurs when at a given demand level, aggregate supply declines due to increase in
production costs such as labor wages or cost of raw materials. This causes the supply to decrease, consequently,
increasing the price of commodities. Therefore, it is also known as supply side inflation.
The concept of cost push inflation can be explained with the diagram below:
In the diagram, vertical axis represents price level and horizontal axis represents quantity level. At the
beginning, aggregate demand curve (AD) intersects aggregate supply curve (AS) at point A, where the
equilibrium price level and quantity are P1 and Q1 respectively. As the supply falls short and the supply curve
shifts leftward from AS1 to AS2, the equilibrium level is restored at point B where the price is higher rises to P 2.
If aggregate supply declines further, AS curve shifts to AS3 thereby causing a rise in price to P3. The rise in price
levels from P1 to P2 and P3 is cost push inflation.
Thus, the figure shows that a decrease in aggregate supply of commodities in relation to demand leads to
inflation, but at the same time reduces the output level in the economy.
Causes of Cost Push Inflation
The major factors leading to cost push inflation are described below:

1. Increase in wage rate

When the increase in wage rate is greater than the level of labor productivity, it leads to inflation. Although
general rise in wage does not lead to inflation, the presence of labor unions, wages generally exceed
productivity causing inflation.

2. Increase in input prices or interest rates

The rise in prices of factors of input such as raw materials, electricity, water supply, oil, etc. leads to rise in price
of goods and services. Similarly, increase in interest rates raise the cost of capital, ultimately leading to inflation.

3. Increase in profit margin

When manufacturing firms increase their profit margin per unit of output, with no increase in cost of production
or demand of the commodity in the market, prices rise rapidly causing inflation.

4. Indirect taxation or removal of subsidies

Increase in indirect taxes like VAT, excise duty, custom duty, etc. directly increases prices of commodities.
Likewise, removal of government subsidies also leads to higher payment of subsidized goods.
5. Depreciation of currency
If the domestic currency is devalued against foreign currency, the prices of imported goods increase. If the
economy is predominated by imports, it will have greater impact on the domestic price movement, leading to
higher inflation.

6. Supply shock
Factors such as natural calamities, power shortage, crop failures, strikes, etc. also cause shortage in the supply
of goods and services, which leads to inflation in the economy.

c. Mixed Demand Pull Cost push inflation

Economists believe that in an economy actual inflationary process contains some elements of both demand pull
inflation and cost push inflation. They state that both the forces operate simultaneously and independently in
an inflationary process. Thus, mixed inflation is when change in price level is a result of change in both
aggregate demand and aggregate supply functions.
But, economists also argue that both demand pull and cost push inflations do not occur simultaneously. The
inflationary process may begin with either excess of demand or an increase in costs of production.

When inflation begins with excess demand with no cost push forces, prices rise and consequently leads to rise in
wage rates (rise in cost of production). Here, wages do not increases because of cost push inflation but because
of rise in prices. This is because, when the price of commodities increase, individuals would want a raise in their
income in order to keep up with the economy. Thus, mixed inflation takes place.

On the other hand, when inflationary process starts with cost push inflation, prices rise but output declines.
Subsequently, problem of unemployment occurs in the economy. In order to avoid economic recession,
government adopts expansionary monetary and fiscal policies. Increase in government’s expenditures give rise
to employment opportunities which further increases income level and purchasing power of people. As a result,
demand for commodities increase, causing a price rise and thus, leading to demand pull inflation.

The diagram below clearly explains the concept of mix inflation:

As seen in the diagram, forces that affect aggregate demand and aggregate supply simultaneously affect each
other. The initial point of equilibrium is E0 where, aggregate demand curve ADo intersects aggregate supply
curve AS0, and the equilibrium price is P0 and output is Y0.
Suppose, wage rates rise due to the activities of the trade union. Rise in wage shifts the AS curve to AS 1 and the
new equilibrium point is E1. At this point, the higher price level is at P1 and the reduced level of output is at Y1.
This is cost push inflation.
As the government takes measures to increase employment level in the economy, income level rises and causes
a shift in the demand curve from AD0 to AD1. The new equilibrium point is E2 where the rise in price is P2. This is
demand pull inflation resulted due to cost push inflation.
Taking another economic scenario, suppose government expenditures increase in the economy, which increases
the level of income of the people. This shifts the AD curve from AD 0 to AD1. The new equilibrium point with
higher price level (P1) and output (Y1) is point E1. This is demand pull inflation.
When prices rise, real income of workers fall. So, workers demand more wages to keep up with the increasing
prices. This causes the aggregate supply curve AS to shift from AS0 to AS1. The new point of equilibrium is
E2 where price rose to P2 and output declined to Y0. Consequently, demand pull inflation gave rise to cost push
inflation.
Thus, demand pull and cost push inflations operate simultaneously in the economy and cause a sustained rise in
prices from P0 to P2.

Effects of Inflation

1. Effects of Inflation on Output and Employment

Inflation has unfavorable effect on production and employment particularly when there are unemployed
resources in the economy. In the short-run, effects of inflation on output and employment depend on whether
the initial force is cost-push or demand pull. Demand pull force shifts the demand curve-up resulting a rise in
price level as well as output and employment. Cost push lead to the rise in price level but decrease in output
and employment.

2. Effect of Income on Distribution of Income and Wealth

Effect of inflation is different for different group of income earners. Flexibility income group such as
businessmen, traders gain during inflation due to increasement in profits of arising from increasement of price.
Fixed income group such as workers, salary men are the losers during inflation but sometimes they are not
affected when their wages are increased according to the inflation.

3. Other Effects:

a. Disrupts the smoothly going price mechanisms and creates uncertainities in the economy.

b. Raises the cost of holding money

c. Creates socio-political unrests.

d. People do not trust the government

e. Encourages black marketing, hoarding, corruption, etc.

f. Affects the pattern of production.

Saving and Saving Function

Meaning

Saving is defined as the excess of income over consumption expenditure. The concept of saving is
closely related to the concept of consumption. Saving is the part of income that is not consumed.
Generally, as the level of income increase, saving also increases and vice versa.
Saving Function
Saving function or the propensity to save expresses the relationship between saving and the level of
income. It is simply the desire of the households to hoard a part of their total disposable income.

Symbolically, the functional relation between saving and income can be defined as S= f(Y).

We know,

Y= C + S;
Thus, S= Y-C;
Where, Y= Income; S= Saving; C= Consumption

The equation shows that the remaining amount after the deduction of total expenditure from total
income is saving. Thus, saving is that part of income which is not spent on consumption

Relationship between Saving and Income

 A direct relationship exists between saving and income. This means, if income increases, saving
also increases but in less proportion in comparison to income.
 When income level is low, saving is negative. In the initial stages when income is low,
consumption expenditure is more than in comparison to the level of earning, so there is no
saving .i.e. dis-saving.
The table and diagram below clearly explains the relationship between income and saving:
 Income (Y) Consumption (C) Saving (S) APS (S/Y) MPS (ΔS/ ΔY)

0 20 -20 – –

60 70 -10 – –

120 120 0 0 –

180 170 10 0.06 0.17

240 220 20 0.08 0.17

Table 1 Relationship between Income and Saving

Attributes of Saving Function

Saving function or propensity to save has two major attributes:

 Average Propensity to Save (APS)
  Marginal Propensity to Save (MPS)
Average Propensity to Save (APS)
The average propensity to save is a relationship between total saving and total income in a given
period of time. It is the ratio of saving to income that shows the portion of the income that people
saved.

Symbolically,

APS=S/Y
Where, S= Saving; Y= Income

For example, when the disposable income is 180, consumption is 170, and saving is 10, we can
calculate APS as
APS= 10/180 =0.06 or 6%

This shows that out of total income in a year, 6 % will be saved after spending on consumption. As
shown in the table above, we can see that the average propensity in save increases with the increase in
income .i.e. APS increased from 0.06 to 0.08 with the increase in income.
Diagrammatically,
APS is a point on the curve S, and it is measured as S1Y1/OY1.
Marginal Propensity to Save (MPS)
The marginal propensity to save or MPS refers to the increase in the proportion of saving as a result of
increase in the level of income. It can be defined as the ratio of change in saving to change in income.

Symbolically,
MPS=ΔS/ΔY
Where, ΔS= Change in saving; ΔY= Change in income

For example, when income increased from 180 to 240, savings also changed from 10 to 20. We can
then calculate MPS as

MPS= 10/60 =0.17 or 17%

This shows that, when income increased, the proportion of saving also increased. The saving made out
of total income is 17%.

Diagrammatically,
In the diagram, BC is the change in income and AB is the consequent change in saving. So, MPS is
AB/BC.
Determinants of Saving Function

The determining factors that contribute to the saving function include Desire to save, Power to save,
and Facilities to save.

Desire to Save
The desire or the willingness of an individual or household to save is the major driving factor towards
saving. The factors that affect the desire of an individual to save are
i. Level of income

Level of income is an important determinant of saving in any economy or country. Higher the level of
income for any household or individual, higher the level of saving.

ii. Provisions for the future

The future requirements of money is uncertain. So, in order to have a secured future against any
uncertain events, saving up at present helps to have a pool of extra money. Savings can be taken as a
precaution for any unforeseen needs in the future.

Ability to Save
In spite of the willingness to save, one cannot save if they do not have the capacity or the ability to
save. Saving is only possible if an individual can meet all their consumption expenditures and still save
up, then it can be said that they have the ability to save. Ability to save depends on the level of income
and consumption expenditure.

The factors that determine the ability to save include

i. Labor Efficiency

The ability or power to save depends on the efficiency of labor. If an economy has an efficient group of
people, it increases production efficiency as well. This results in increasing income and thus people
can have more money that can be saved, even after meeting the consumption expenditures.

ii. Size of National Income

Higher the national income, greater is the ability to save. Low national income in developing and under-
developed countries is the main reason for no saving being made.

iii. Developmental activities

The development of various sectors like trade, industrial areas, agricultural sector, etc. is a source of
increased income level, as there will be more inflow of money into the economy.
Facilities to Save
Saving also depends on the facilities availability. This includes:

i. Development of financial institutions

The development and expansion of financial institutions like banks, co-operatives, etc. encourage
people to save more with their effective marketing strategies. They also provide attractive interest
rates on savings.

ii. Rate of interest

Attractive interest rates encourage people to save more. When the interest rates are high in the market,
people save more, and when the rates are low, they withdraw and spend on consumption.

iii. Social security system

The provision of security system such as old age pensions, medical insurance, unemployment
allowance, etc. reduces the rate of saving in a country. When there is adequate provision of social
security in the society, people feel secured about their future and they spend more of their income on
consumption.

iv. Taxation Policy

Progressive taxes reduce saving as taxes increase with the increase in income. People with higher
income save less because of the taxes they need to pay. But if the taxes on expenditure are higher
then, they are encouraged to spend less and save more.
v. Fiscal policy

The fiscal policy of the government affects the level of saving in a country. If taxes are imposed on
necessary commodities, people cannot save more. The reduction of taxes on basic goods leads to an
increase in the level of saving. Also, if taxes are high on luxury goods, people are enticed to save more
than to purchase luxury goods.

Adopted from: https://www.businesstopia.net/economics/macro/saving-function

Business Cycle

Definition:

It refers to the fluctuations in output and employment with alternating periods of time. It shows a rise or fall in
aggregate output, national income and employment in the economy.

Features of Business Cycle:

1. It is periodic and regular which means it operates at regular interval of 10 to 12 years and all the phases came
regularly.

2. It covers all the sectors.

3. It is universal which means it is found in every countries.

4. It is self-reinforcing.

Phases of Business Cycle:

1. Expansion:
In the expansion phase, there is an increase in various economic factors, such as production,
employment, output, wages, profits, demand and supply of products, and sales. The prices of
factor of production and output increases simultaneously. In this phase, debtors are generally in
good financial condition to repay their debts; therefore, creditors lend money at higher interest
rates. This leads to an increase in the flow of money.

In expansion phase, due to increase in investment opportunities, idle funds of organizations or

individuals are utilized for various investment purposes. Therefore, in such a case, the cash
inflow and outflow of businesses are equal. This expansion continues till the economic
conditions are favorable.

2. Peak:
The growth in the expansion phase eventually slows down and reaches to its peak. This phase is
known as peak phase. In other words, peak phase refers to the phase in which the increase in
growth rate of business cycle achieves its maximum limit. In peak phase, the economic factors,
such as production, profit, sales, and employment, are higher, but do not increase further. In
peak phase, there is a gradual decrease in the demand of various products due to increase in the
prices of input.

The increase in the prices of input leads to an increase in the prices of final products, while the
income of individuals remains constant. This also leads consumers to restructure their monthly
budget. As a result, the demand for products, such as jewellery, homes, automobiles,
refrigerators and other durables, starts falling.

3. Recession:
As discussed earlier, in peak phase, there is a gradual decrease in the demand of various
products due to increase in the prices of input. When the decline in the demand of products
becomes rapid and steady, the recession phase takes place.

In recession phase, all the economic factors, such as production, prices, saving and investment,
starts decreasing. Generally, producers are unaware of decrease in the demand of products and
they continue to produce goods and services. In such a case, the supply of products exceeds the
demand.

Over the time, producers realize the surplus of supply when the cost of manufacturing of a
product is more than profit generated. This condition firstly experienced by few industries and
slowly spread to all industries.
This situation is firstly considered as a small fluctuation in the market, but as the problem exists
for a longer duration, producers start noticing it. Consequently, producers avoid any type of
further investment in factor of production, such as labor, machinery, and furniture. This leads to
the reduction in the prices of factor, which results in the decline of demand of inputs as well as
output.

4. Trough:
During the trough phase, the economic activities of a country decline below the normal level. In
this phase, the growth rate of an economy becomes negative. In addition, in trough phase, there
is a rapid decline in national income and expenditure.

In this phase, it becomes difficult for debtors to pay off their debts. As a result, the rate of
interest decreases; therefore, banks do not prefer to lend money. Consequently, banks face the
situation of increase in their cash balances.

Apart from this, the level of economic output of a country becomes low and unemployment
becomes high. In addition, in trough phase, investors do not invest in stock markets. In trough
phase, many weak organizations leave industries or rather dissolve. At this point, an economy
reaches to the lowest level of shrinking.

5. Recovery:
As discussed above, in trough phase, an economy reaches to the lowest level of shrinking. This
lowest level is the limit to which an economy shrinks. Once the economy touches the lowest
level, it happens to be the end of negativism and beginning of positivism.
This leads to reversal of the process of business cycle. As a result, individuals and organizations
start developing a positive attitude toward the various economic factors, such as investment,
employment, and production. This process of reversal starts from the labor market.

Consequently, organizations discontinue laying off individuals and start hiring but in limited
number. At this stage, wages provided by organizations to individuals is less as compared to
their skills and abilities. This marks the beginning of the recovery phase.

In recovery phase, consumers increase their rate of consumption, as they assume that there
would be no further reduction in the prices of products. As a result, the demand for consumer
products increases.

In addition in recovery phase, bankers start utilizing their accumulated cash balances by
declining the lending rate and increasing investment in various securities and bonds. Similarly,
adopting a positive approach other private investors also start investing in the stock market As a
result, security prices increase and rate of interest decreases.

Price mechanism plays a very important role in the recovery phase of economy. As discussed
earlier, during recession the rate at which the price of factor of production falls is greater than
the rate of reduction in the prices of final products.

Therefore producers are always able to earn a certain amount of profit, which increases at trough
stage. The increase in profit also continues in the recovery phase. Apart from this, in recovery
phase, some of the depreciated capital goods are replaced by producers and some are maintained
by them. As a result, investment and employment by organizations increases. As this process
gains momentum an economy again enters into the phase of expansion. Thus, a business cycle
gets completed.

Migration and Urbanization

Migration
It is the movement of persons away from their usual place of residence, either access on international border or
within a state.
Elements of Migration According to U.N:
a. Leaving the usual place of residence.
b. Crossing the geographical/political boundary
c. Time Frame at least 6 Months
Types of Migration:
a. On the basis of Territory
i. Internal Migration
It is the movement of people within a country involving the establishment of a new temporary or permanent
residence. It is divided into following types:
 Inter-State/District: Migration of people across state or district boundary
 Intra-State/District: Migration within the state or district boundary.
ii. International Migration
It is the movement of person away from their place of usual residence and across an international border to a
country of which they are not nationals.
 Immigration: Movement to a destination country of which they are not natives or do not possess citizenship
(from the view of place of destination)
 Emigration: Movement from one’s country to the destination country (from the view of place of origin)
b. On the basis of Continent
i.Inter-Continental Migration
Movement of people across continents such as from Asia to Europe
ii. Intra-Continental
Movement of the same or within the continent such as from Asia to Asia.
c. On the basis of Law
i.Regular Migration : Migration that occurs in accordance with the laws of the country of origin, transit and
destination.
ii.Irregular Migration: Movement of person that takes place outside the laws, regulations or international
agreements governing the entry into or exit from the place of origin, transit or destination.
d. On the basis of Place of Residence
i. Rural to Rural Migration: Movement of people from rural area to another rural area.
ii. Rural to Urban Migration: Movement of people from rural area to urban area.
iii. Urban to Rural Migration: Movement of people from urban area to rural area.
iv. Urban to Urban Migration: Movement of people from urban area to another urban area.
e. On the basis of Duration:
 i.Permanent Migration: Movement from one place to another place and has no plans to return their
original home.
ii.Temporary Migration: Movement of people from one place to another and has plans to return their
original home often limited by time.
f. On the basis of Scales:
i.Mass Migration: Large movement of people over a short-period of time due to natural disasters and
social disasters which have huge social and economic costs in both place of origin and destination.
ii.Individual Migration: Planned or unplanned movement of people due to many reasons.
g. On the basis of Time Period
i.Short Term Migration: Movement of people for a short period of time especially at least three months
less than a year due to agricultural or other reasons.
ii.Long-term Migration: Movement of people from one place to another for a period of time at least a
year so the place of destination effectively becomes his/her new place of residence.
h. On the basis of Series/Pattern
i.Step-Migration: Migration that takes place in a person’s life which are shorter less extreme and takes
place from a person’s place of origin to his/her place of destination.
ii.Chain Migration: Migration that takes place within a family or defined group of people in which usually
one family member migrates to another place and later he/she brings other family members/community
members to the new location.
i. On the basis of factors Affecting:
i.Forced Migration/ Involuntary Migration: Movement of people from one place to another in a large
group when a government or authority of a place force them to migrate based on their religion or ethnicity.
ii.Impelled Migration/Reluctant Migration: Movement of people from one place to another in which
people leave the place because of unfavorable situations such as warfare, hunger, natural disaster.
j. On the basis of Skill
i.Skilled Migration: Movement of skilled people from one place to another.
 ii.Semi-Skilled Migration: Movement of semi-skilled people from one place to another.
Migrant
Person who moves away from his/her usual place of residence whether within a country or across an
international border temporarily or permanently due to variety of reasons. This term includes a number of
well defined categories of people such as migrant workers, smuggled migrants, international students.
Characteristics of Migrant:
a.Social Characteristics
1. Sometimes migrants are not accepted by the society easily.
2. Migrants have high quality of cultural assimilation.
3. They bring their own culture, tradition, language and festival.
4. It is mostly sure that migrants face: Difficulty, Dirty, Danger and Discrimination.
5. Most of the migrants migrate in the hope of better education,health and better infrastructure.
b.Economic Characteristics
1. Most of the migrants are driven by economic reasons. (Todaro)
2. Most of the migrants are labor migrants having semi-skilled.
3. Labor migrants face unequal treatment.
4. Labor migrants have to work for long hours with low wages.
5. Most of the migrants have better living standard.
6. Most of the migrants tend to do any job at place of destination.
7. Most of the migrants are brain-drained to migrate for better job in the place of destination.
c.Demographic Characteristics
1. Females migrants are more engaged in internal migration due to marriage. (Ravenstein)
2. Male migrants are more engaged in international migration for job. (Ravenstein)
3. Most of the migrants are from age group 20-35. (Lee)
4. Most of the migrants are never married and married.
5. Most of the migrants are rural born. (Ravenstein)
d.Physical Characteristics
1. Most of the migrants are from short distance. (Ravenstein)
2. Most of the migrants are healthy.
3. Migrants follow step-migration.
4. Only few migrants want to return back their home.
5. Migrants are intermediate between the characteristics of the population of place of origin and place of
destination.
6. Migrants migrate due to the response of pull and push factors.
Some Important Terminologies in Migration:
Absentee: According to the census of 2011:Any member of a household who has been abroad for six or more
months prior to the time of enumeration. Migrants are counted at the destination and, hence, are all living within
the country whereas absentees, although enumerated at the place of origin, denote only external migrants. The
census deals with immigrants as a separate category.
Asylum seeker – An individual who is seeking international protection. In countries with individualized
procedures, an asylum seeker is someone whose claim has not yet been finally decided on by the country in which
he or she has submitted it. Not every asylum seeker will ultimately be recognized as a refugee, but every
recognized refugee is initially an asylum seeker.

Place of destination – In the migration context, a place that is the destination for a person or a group of persons,
irrespective of whether they migrate regularly or irregularly. Place where the people live after recent migration.

Place of origin – In the migration context, a place of nationality or of former habitual residence of a person or
group of persons who have migrated abroad, irrespective of whether they migrate regularly or irregularly.
Immediate place of living. Place where migrant was born and nurtured in his/her early existence.
Country of transit – In the migration context, the country through which a person or a group of persons pass on
any journey to the country of destination or from the country of destination to the country of origin or of habitual
residence.

Displacement – The movement of persons who have been forced or obliged to flee or to leave their homes or
places of habitual residence, in particular as a result of or in order to avoid the effects of armed conflict, situations
of generalized violence, violations of human rights or natural or human-made disasters.

Emigration – From the perspective of the country of departure, the act of moving from one’s country of
nationality or usual residence to another country, so that the country of destination effectively becomes his or her
new country of usual residence.

Emigrant: From the perspective of country of origin, a person who has migrated from his/her country of
nationality or usual residence to another country so that the country of destination effectively becomes his/her
new country of usual residence.
Expulsion – A formal act or conduct attributable to a State by which a non-national is compelled to leave the
territory of that State.
Immigrant – From the perspective of the country of arrival, a person who moves into a country other than that of
his or her nationality or usual residence, so that the country of destination effectively becomes his or her new
country of usual residence.
Immigration – From the perspective of the country of arrival, the act of moving into a country other than one’s
country of nationality or usual residence, so that the country of destination effectively becomes his or her new
country of usual residence.
Refugee (1951 Convention) – A person who, owing to a well-founded fear of persecution for reasons of race,
religion, nationality, membership of a particular social group or political opinion, is outside the country of his
nationality and is unable or, owing to such fear, is unwilling to avail himself of the protection of that country; or
who, not having a nationality and being outside the country of his former habitual residence as a result of such
events, is unable or, owing to such fear, is unwilling to return to it.

Remittances (migrant) – Private international monetary transfers that migrants make, individually or

collectively. Remittances are primarily sent to people in countries of origin with whom migrants maintain close
links, although, in some cases, they are also sent to relatives in other countries   of destination. 

Consequences or Effects of Migration:

1. Social Consequence of Migration:

 Social Aspect Place of Origin
1. Infrastructure Less focus will be given in
the development of
infrastructure. The
developed infrastructure will
be used less.
2. Security There will be mixed feeling
about security because there
are less people which
ultimately leads to the less
chance of crime.
3. Education Quality education will be
less easy to achieve because
no one focuses on the
development of
infrastructure for education.
Existence of large physical
distance of students to
school. Difficulty in finding
teachers, poor internet
connection and lack of study
materials.
4. Health Shortage of health facilities,
Place of Destination
There will be lack of
infrastructure.
There will be less feeling of
security because of the
existence of crime.
Quality education will be hard
to achieve de to the crowding
of the people but there is the
presence of: qualified and
experienced teachers, staff;
good internet connection;
large number of schools;
sufficient study materials.
Abundant health facilities,
2. Economic Consequences of Migration:
Economic Aspect Place of Origin Place of Destination
1. Labor There will be shortage of There will be more labor
labor and occupation like force especially semi-
agriculture will be based skilled and also causes
upon women, old and unemployment.
child.
2. Raw Material Most of the raw materials Most of the raw material
won’t be utilized due to will be utilized due to the
the lack of the labor presence of more labor
force. force.
3. Flow of Money It will gain money The money flow will
through remittances. procced towards another
place in the form of
remittances.
4. Economic Growth There will be economic There will be huge
growth due to the economic growth due to
remittances. the mass production.
5. Living Standard The living standard of the There are 2 faces:
family whose member a. Since,
has migrated will unemployment
increase. increases living
standard decreases
b. Since, growth of
the economy
increases, the
tendency of living
 standard also
increase.
6. Mode of The destruction of the The flourishment and
Production (World traditional mode of empowerment of
System Theory) production. capitalist mode of
production.

3. Demographic Consequences of Migration

Aspects Place of Origin Place of Destination
1. Size of Population There will be huge There will be increase in
number of absentees in the population due to the
the population. new migrant.
2. Disbalance in Internal Migration: Girls Internal Migration: It will
Gender will migrate to another achieve women migrant
place because of due to the marriage.
marriage. International Migrant: It
International Migration: will achieve men
Men will go to abroad migrant.
especially for
employment.
3. Age People of age group 15- It will achieve people of
29 will leave the place of age group 15-29.
origin in both internal
and international
migration.
4. Marital Status I will lose single married It will achieve single
and never married people married and never
 in internal and
international migration.
5. Place of Residence Place of origin is rural
areas as most of the
people migrate from this
place.
married people in internal
and international
migration.
Place of destination is
urban areas most of the
people migrate to this
place.

Global Patterns and Trends of Migration

1. The number of international migrants globally in 2019: 272 million (3.5% of the world’s population)
• 52 per cent of international migrants were male; 48 per cent were female.
• 74 per cent of all international migrants were of working age (20–64 years).
2. India continued to be the largest country of origin of international migrants
• India had the largest number of migrants living abroad (17.5 million), followed by Mexico and China
(11.8 million and 10.7 million respectively).
3. The top destination country remained the United States (50.7 million international migrants).
4. The number of migrant workers declined slightly in high income countries while increasing elsewhere
• Between 2013 and 2017, high-income countries experienced a slight drop in migrant workers (from
112.3 million to 111.2 million). Upper middle-income countries observed the biggest increase (from
17.5 million to 30.5 million).
• Globally, male migrant workers outnumbered female migrant workers by 28 million in 2017. There
were 96 million male migrant workers(58%) and 68 million female migrant workers(42%).
5. International remittances increased to USD 689 billion in 2018
• The top 3 remittance recipients were India (USD 78.6 billion), China (USD 67.4 billion) and Mexico
(USD 35.7 billion).
 • The United States remained the top remittance-sending country (USD 68.0 billion) followed by the
United Arab Emirates (USD 44.4 billion) and Saudi Arabia (USD 36.1 billion). 6.The global refugee
population was 25.9 million in 2018
• 20.4 million refugees were under the mandate of the United Nations High Commissioner for Refugees
(UNHCR) and 5.5 million were refugees under the mandate of the United Nations Relief and Works
Agency for Palestine Refugees (UNRWA) in the Near East.
• 52 per cent of the global refugee population was under 18 years of age.
6. The number of internally displaced persons due to violence and conflict reached 41.3 million • This was
the highest number on record since the Internal Displacement Monitoring Centre began monitoring in
1998.
• The Syrian Arab Republic had the highest number of people displaced (6.1 million) followed by
Colombia (5.8 million) and the Democratic Republic of the Congo (3.1 million). The number of
stateless persons globally in 2018 was 3.9 million
• Bangladesh had the largest number of stateless persons (around 906,000). It was followed by Côte
d’Ivoire (692,000) and Myanmar (620,000).
• While most international migrants born in Africa, Asia and Europe reside within their regions of birth,
the majority of migrants from Latin America and the Caribbean and Northern America reside outside
their regions of birth. In Oceania, the number of intraregional migrants and those residing outside the
region remained about the same in 2019.
• More than half of all international migrants (141 million) lived in Europe and Northern America.
Migration has been a key determinant of population change in several countries
• Intraregional migration has been an important contributor to population change in some African
countries such as Equatorial Guinea.
• Labour migration has contributed to significantpopulation changes especially in Gulf Cooperation
Council (GCC) States. With the exceptions of Oman and Saudi Arabia, migrants made up the majority
of the populations in GCC countries.
7.Displacement remained a major feature in some regions
• The Syrian Arab Republic and Turkey were the origin and host of the largest number of refugees
globally, 6.7 million and 3.7 million, respectively.
Canada became the largest refugee resettlement country, resettling more refugees than the United States
in 2018.
• The Philippines had the largest number of new disaster displacements in 2018 (3.8 million).
• Around 4 million Venezuelans had left their country by mid-2019. The Bolivarian Republic of
Venezuela was the largest source country of asylum seekers in 2018 (over 340,000).
International Migrants from 1970-2019
Year Migrant as a Percentage of the World
Population
1970 2.3%
1975 2.2%
1980 2.3%
1985 2.3%
1990 2.9%
1995 2.8%
2000 2.8%
2005 2.9%
2010 3.2%
2015 3.4%
2019 3.5%
Conclusion: The number of the international migrants are increasing.
Internal Migration in Nepal:
a. Waves of Migration in Nepal
 i.First Wave: It was present during Prithivi Narayan Shah and his successor until 18th Century.
Migration was mainly due to the Jhara labor in which youths were used for different purposes such
as transport of military and other supplies, construction of temples, palaces, bridges, forts, etc. Jhara
labor was kind of forced labor required to leave their villages to provide services in distant culture.
ii.Second Wave: The second wave of internal migration emerged in the mid-50s with the
implementation of the state sponsored resettlement programme of hill people to Tarai. The main
objective of the resettlement programme was land colonisation of Tarai and increase agricultural
production. Launched by Rapti Valley Development Project (RVDP) and Nepal Resettlement
Company (NRC), the resettlement programme continued until the late 80s in Chitwan and
Nawalparasi. Under the RVDP, 5,233 households were settled in Rapti Valley of Chitwan. In
addition, an estimated 7,000 families settled spontaneously each year in the Tarai region. NRC
settled 1,504 families in Nawalparasi and there were more than 10,000 spontaneous settlements.
iii. Third Wave: It emerged during advent of democracy in 1951 with socio-economic
transformation of the country. Nepal witnessed a rapid increase in the volume of internal migrants
because of the expansion of employment opportunities in informal sectors.
b. Inter-District Migrants
Year Inter District migrants (as Percentage)
1961 4.7%
1971 -
1981 8.6%
1991 9.6%
2001 13.2%
2011 14.8%
c. Migration by Ecological Region
Net- Ecological Districts Number of Percentage
Migration Region Districts
Status
Net-Out Hill Bhojpur, Khotang, Terhathum, Okhaldhunga, Syangja,Parbat, 33 44
Migration Ramechhap, Panchthar, Gulmi, Gorkha, Lamjung,Nuwakot,
Baglung, Kavrepalanchowk, Palpa, Arghakhanchi,
Dhankuta, Achham, Dhading, Baitadi, Doti, Myagdi,Dailekh,
Salyan, Pyuthan, Sindhuli, Rolpa, Dadeldhura,Rukum, Jajarkot,
Tanahu, Ilam, Makwanpur

Mountain Taplejung, Sankhuwasabha, Dolakha, Solukhumbu,Sindhupalchok, 16 21.3

Manang, Mustang,Darchula, Rasuwa,Bajhang, Jumla, Kalikot,
Bajura, Mugu, Humla, Dolpa
Terai Saptari, Dhanusa, Siraha, Rautahat, Mahottari, Parsa, Sarlahi 7 9.4

Net-in Terai Bara, Dang, Kapilbastu, Bardiya, Morang, Sunsari,Nawalparasi, 13 17.3

Migration Jhapa, Banke, Rupandehi, Kailali, Chitawan,Kanchanpur
Hill Surkhet, Udayapur, Kaski, Bhaktapur, Lalitpur, Kathmandu 6 8

d. Migration by Place of Residence:

Place of Residence Percentage of Migrants
Rural-Urban 33.5%
Urban-Urban 4.5%
 Rural-Rural 59.2%
Urban-Rural 2.9%
e. Reason of Migration in Nepal
Reasons Percentage
Agriculture 14.9%
Business 5.9%
Service 10.9%
Study 13.4%
Marriage 23.6%
Dependent 20.4%
Conflict 0.6%
Others 4.7%
Reasons not Stated 5.8%

International Migration in Nepal

a. Absentee Population
Year Total (in Male (in Female (in
percentage) Percentage) Percentage)
1981 2.6% 81.3% 18.5%
1991 3.4% 83.2% 16.8%
2001 3.2% 89.2% 10.8%
2011 7.3% 87.6% 12.4%
b.Percentage of Migrants to Destination Countries
Year To India To Other Countries
1981 93.1% 6.9%
 1991 89.2% 12.8%
2001 77.3% 22.7%
2011 37.6% 61.4%
b. Emigration Rate in Nepal=10.77 per thousand people
c. Immigration Rate in Nepal=0.46 per thousand people
d. Gross Migration Rate in Nepal= 11.23 per thousand people
e. Net Migration Rate in Nepal= -10.32 per thousand people
Ravenstein Laws of Migration:
Introduction:
Ernst George Ravenstein was a British statistician who wrote two articles and published a paper entitled “The
Laws of Migration” in 1885 which is based on the data related to migration between England and Wales in the
1880s decade. He argued that migration was not random but governed by general laws and this law was
effected by variables such as distance, transportation, motive, etc. In his first thesis, he put forward the general
laws of migration which concentrate to the internal migration, whereas second is based on the international
migration.
Laws of Migration:
Law 1: Most of the migrants are from short-distance.
There is inverse relationship between the distance and the number of migrants(volume of migration). If there is
short distance between the place of origin and destination, the volume of migration will be high compare to
the longer distance. So, the majority of migrants go only short distance.
Law 2: Migration proceeds step by step.
Inhabitants of remote area tend to migrate towards the small town then after the larger city. Most of the
people are not able to migrate directly towards the big cities from the rural areas.
Law 3: Each migration current produces a compensating counter-current.
The volume of migration stream is larger than the counter-stream. If we observe the trend of Nepalese
migration, the flow of migration from Hill and Mountain to Terai and its counter-stream is from Terai to Hill and
Mountain. Where, the volume of migration from Hill to Terai is much larger than its counter-stream.
Law 4: Most of the migrants are rural born
Urban born people are less migratory than the people in rural areas. Most of the people migrate for the
betterment of their living and to acquire amenities. The urban natives are already utilizing the urban facilities ,so
there is not necessary to migrate. But rural natives are deprived from facilities such as education ,health ,
transportation , communication and employment , so people migrate from remote area to urban area.
Law 5: Females are more migratory than males in short distance.
The volume of female migration is higher than the male in short distance as well as internal migration only. This
is due to the marriage causes. Whereas, male are more common in international migration and cover long
distance compared to the female.
Law 6: Migration increases with the improvement in technology.
The advancement of technology creates job opportunities as well as facilities for better livelihood .So, the
size of migration increases with the development .

Law 7: There is always a motive behind migration especially economic motive

There is motive behind migration where as economic motive have primacy among the various factors
governing magnitude of migration. Motive refer to the employment , education and better earning.

Zipf's Inverse Distance Law or Gravity Theory of Migration

Introduction:
G.K Zipf, a well known geographer developed the gravity hypothesis of migration based on Ravenstein laws
of migration ;most of the migrants are from short distance and igration proceeds step-by-step. It is also
known as (P1 X P2)\D hypothesis or social physics of Newton.It is used to predict the interaction between
two places.This law is based Newtons Gravitational Law which states that gravitational force between two
bodies is directly proportional to the product of their masses and inversely proportional to the distance
between them.This model can be use to explain :
1. Traffic Flow
2. Migration between two areas
3. The number of people likely to use one central place.
Statement of the Law:
There is an inverse relationship between the numbers of people moving and the distance moved. The
volume of migration between the two places, (mainly place of origin and place of destination) is
directly proportional to the size of two places and inversely proportional to the distance between the
places.
Mathematically:
Iij=k . Pi.Pj/Dij
Where, Iij=Volume of migration from i to j
Pi and Pj=Size of place i and j in-terms of area, population, socio-economic setting
Dij=Distance between i and J
K=a constant
 Explanation of the Figure:
• The gravity is the force of attraction of earth pulls an object towards its center or surface. In this
hypothesis, the gravity is symbolized to show the forces that pull the people towards the place of
destination.In this model, according to Zipf, people will migrate even if they are not pushed from their
place of origin, they migrate because they are pulled by better socio-economic future at the some
other place (destination). In the gravity, earth pulls any objects towards it surface, in a similar way ;
people are pulled towards the big cities by its pull effect (same as gravity) not by push effect at the
place of origin. This attraction force is determined by the size of destination in-terms of socio-
economic facilities, size of population and distance between place of origin and destination. In this
model, the pull factors are treated as ‘attracting mass’ and while the mass pull , the distance acts as
friction to migration.
 System Approach to the Theory of Migration:
Introduction:
Akin L. Mabogunje is an African Scholar who has approached rural-urban migration from different
point of view rather than prevailing approaches.It shows the system approach to rural-urban
migration is concerned not only with why people migrate but also with the implications and
consequences of the process. This theory is designed to answer why and how a rural individual
become a permanent city dweller as well as what factors are operating on the system. This theory is
written with the particular reference to Africa.

1. Environment:
 Comprises “the set of all objects a change in whose attributes affects the system, and also those
objects whose attributes are changed by the behaviour of the system. This is the environment which
stimulates the villager to desire change in the basic locale and rationale of his economic activities and
which, in consequence, determines the volume, characteristics, and importance of rural-urban
migration.
2. System:
A system may be defined as a complex of interacting elements, together with their attributes and
relationships . Figure indicates the basic elements in the rural-urban migration system as well as the
environment within which the system operates. It identified first the potential migrant who is being
encouraged to migrate from the environment.
3. Sub-System:
. A control sub-system is one which oversees the operation of the general system and determines
when and how to increase or decrease the amount of flow in the system.There are two types of sub-
system:
I. Rural Sub-System: family structure,age at marriage, age at economic independent, land tuner or
holding system,agriculture activities,etc.
II. Urban Sub-System: employment opportunities, residential facilities, urban wages,etc.
The urban control sub-system operates at the opposite end of the migrant’s trajectory to encourage
or discourage them from being absorbed into the urban environment. Absorption at this level is of
two kinds:
1. Residential
2. Occupational
4. Adjustment Mechanism:
• These are the series of factors in the environment which acts like push or pull factors and operates
both the rural and urban sub-system. It is also of two types:
1. Rural Adjustment Mechanism : agriculture production, types of production, income, land tenure
system, land distribution and ownership
2. Urban Adjustment Mechanism: socio-economic needs of migrants, own community, ethnic union
Urban adjustment mechanism act both positively or negatively to adjust migrant in the urban sector.
5.Energy:
A system comprises not only matter (the migrant, the institutions,and the various organizations
mentioned) but also energy. In the physical sense, energy is the capacity of body to do work. It can be
expressed two forms of it which are relevant here :“potential energy’’ which is the body’s power of
doing work by virtue of stresses resulting from its relation either with its environment or with other
bodies and the second form is “kinetic energy” which is the capacity of a body to do work by virtue of
its own motion or activity. In a theory of rural-urban migration:
1. Potential energy can be likened to the stimuli acting on the rural individual to move.
2. Kinetic Energy is translation of potential energy when the individual has been successfully dislodge
from the rural area.
Relationship between the System and Environment:
Systems can be classified into three categories depending on the relationship they maintain with their
environment;
1. Isolated systems which exchange neither “matter” nor “energy” with their
Environment
2. Closed systems which exchange “energy” but not “matter”;
3. Open systems which exchange both “energy” and “matter”
Todaro Migration Model
Introduction:
Michael P. Todaro, an economist developed an economic model of rural-urban migration which is
known as “Todaro Model of Migration” in 1969 A.D.Todaro work is considered one of the starting
points of the classic rural-urban migration theory. He proved the Ravenstein’s one of the law which
stated that most of the migratory are rural born. In his theory, he stated that people of rural areas
migrate to urban areas. The key hypothesis of Todaro’s model is mainly economic issues,earnings
differential and the possibilities of getting job at the destination.
 Assumptions of the Model:
1. Migration is primarily an economic phenomenon.
2. Each potential migrant decides whether or not to migrate on the basis of expected income
maximization.
3. The probability of finding urban job at destination is sufficient.
4. Probability of obtaining urban job is inversely related to the urban unemployment rate.
5. All members of labour force compare their expected income for a given period of tume.
The individual’s decision to migrate depends upon the following principles:
1. The real income differences between the urban and rural area.
2. The probability of obtaining an urban job
Schematic Framework of Todaro Migration Model:
 Explanation of the Figure:
In this schematic framework, decision of migration depends upon the perceived value of migration
which is determined by the cost and return of migration. The return of migration is determined by the
urban income, rural income, and psychic returns. The cost of migration is determined by the psychic
costs, transport costs, cost of migration and opportunity costs. Urban income is determined by the
urban remittances , probability of a urban job, self-employed earnings, education and urban wage.
Rural Income is determined by the complementary factors, government policies, education, rural
remittances and social system. The information flows from education,media, rural-urban contacts and
distance helps to develop perceive value of migration.
Problems Related to Rural-Urban Migration:
1. Urban centered development policy creates imbalances in rural-urban job opportunities
2. The overflow of people into urban areas not only give rise to socio-economic problems in cities but
also creates problems of labour shortages.
3. Rural-Urban migration may lead not only to higher the levels of urban unemployment but also to
lower levels of agricultural production.
4. Urban job creation is not sufficient for the urban unemployment problems.
5. Rural-urban migration must be minimized through creative and well-designed programs of integrated
rural development.
6. Wage subsidies and traditional scarcity-factor pricing can be counter productive.
Solutions:
1. Creating an appropriate rural-urban economic balance.
2. Expansion of small-scale and labor intensive industries.
3. Elimination of factor price substitution.
4. Choosing appropriate labor-intensive technologies of production.
5. Modifying the direct linkage between education and employment.
6. Reducing population growth through reduction in absolute poverty and inequality, particularly for
women along with expanded provision of family planning and rural health services.
World System Theory and Migration
Introduction:
World System Theory was propounded by Immanuel Wallerstein in 1974 AD. According to him, world
system is a social system which has boundaries, structures, member groups, rules of legitimating and
coherence. After the publication of world system theory, various sociological theories has linked the
origin of international migration not to the wage difference but due to the dynamics of the global
economy. According to World System Theory, migration is a natural outgrowth of disruptions and
dislocations that occurs in the process of capitalist expansion.
Explanation:
The capitalist expansion has consequences for migration issues not only due to the capitalist mode of
production but also the culture and strong transportation, communication and military links that
penetrate peripheries. Land, raw material and labor within peripheral regions come under the
influence and control of market as a result it has created a socially uprooted population which have
less attachments to their land and are more interested in migration.
1. Land
For the greatest profit from existing agrarian resources and to compete within global commodity
markets, capitalist farmers see to consolidate land, introduce cash crops, mechanize agriculture as a
result it destroys the traditional system of land tenure, social and economic relations based on
subsistence crops. All these factors contribute to the creation of mobile labor force displaced from the
land with less attachment to the agrarian communities.
2. Raw Materials
The extraction of raw materials for sale on global markets requires industrial methods that rely on
paid labor. The offer of wages to former farmers affect traditional forms of social and economic
organization based on system of mutual exchange and fixed role relation. As a result there will be
creation of labor market based on new conceptions of individualism, private gain and social change
which promote the geographical mobility of labor in peripheral nations.
3. Labor
Firms from core capitalist countries enter developing countries to establish factories that take
advantage of low wage rates often within special export processing zones. The demand for factory
workers creates labor market by weakening the traditional productive relation. Much of the labor
demanded is female causing feminsation of the workforce limiting the opportunities for men as
women can be poorly paid. The introduction of foreign owned factories into peripheral regions affect
subsistence economy by producing goods that compete with local goods, feminizing the workforce
and socializing women for industrial work. This result in the creation of workforce that are mobile.
4. Material Link
In order to ship goods, deliver machinery, extract and export raw materials, coordinate and manage
business operations and machinery plants, core nations build and expand transportation and
communication link to the peripheral countries where they have invested. These links not only
transport the goods and information, they also promote the movement of people by reducing the cost
of transportation from periphery to core.
5. Ideological Link
International migration is especially likely between past colonial powers and their former colonies
because cultural, linguistic, administrative, investment, transportation and communication linkes
were established earlier.
6. Global Cities
The world economy is managed from a relatively small number of urban centers in which banking,
administration, professional and high tech production tend to be concentrated. Within these societies
a great deal of wealth and highly educated concentrated in skillfull and luxurious jobs creating a string
demand for services from unskilled workers like gardeners, waiters, etc.
Everett S. Lee Conceptual Framework of Migration
Introduction:
 Lee restated and updated the Ravenstein's law of migration and published a conceptual framework
for migration analysis in 1960 A.D. He described the migration process and how a potential migrate
and others do not.
Explanation:
Everett Lee in his A Theory of Migration divides the factors that determine the decision to migrate and
the process of migration into four categories:
1. Factors associated with the Area of Origin:
There are many factors which motivate people to leave their place of origin to outside area. They are
push factors.

2. Factors associated with the Area of Destination:

There are very attractive forces at the area of destination to which the proportion of “selectivity”
migrants is high. According to Lee, such forces are found in metropolitan areas of a country. Pull
factors are present in such areas.

3. Intervening Obstacles:
There are intervening obstacles like distance and transportation which increase migrant selectivity of
the area of destination. These obstacles have been lessened in modern times with technological
advances. Lee also refers to cost of movements, ethnic barriers and personal factors as intervening
obstacles.

4. Personal Factors:
Lastly, it is the personal factors on which the decision to migrate from the place of origin to the place of
destination depends. In fact, it is an individual’s perception of the ‘pull and push forces’ which influence
actual migration. He categorises these forces into “pluses” and “minuses” respectively. In other words,
pluses are pull factors and minuses are push factors. In between them are “zeros” which balance the
competing forces.

These are explained in figure, where the first circle represents the area of origin and the second circle
the area of destination. The sign pluses represents the forces that attract people to a place (pull
factors) and that of minuses represents the forces that push people from the area. Zeros represent the
indifference of the people towards migration. In between these forces are the intervening obstacles.

According to Lee, it is the personal factors such as age, sex, race and education which alongwith the
pull-push factors and intervening obstacles that determine migration. Further, there are sequential
migrants such as children and wives of migrants who have little role in the decision to migrate.

Lee has formulated three hypotheses within the conceptual framework of the above noted four factors.

These are:
1. Characteristics of Migrants:
(1) Migration is selective.

(2) Migrants who respond primarily to plus factors at destination tend to be positively selective.

(3) Migrants who respond primarily to minus factors at origin tend to be negatively selective

(4) When all migrants are considered together selection for migration tends to be bimodel.
(5) The degree of positive selection increases with the difficulties of intervening obstacles.

(6) The characteristics of migrants tend to be intermediate between the characteristics of the population
of the place of origin and those of place of destination.

(7) The higher propensity to migrate at certain stages of the life-cycle is important in the selection of
migrants.

2. Volume of Migration:
(1) The volume of migration increases with the diversity of areas in that particular territory.

(2) It varies with the diversity of the people.

(3) The volume of migration decreases with the difficulty of overcoming the intervening variables.

(4) It varies with fluctuations in the economy which means during the fluctuation of economy there is
high volume of migration and vice-versa.

(5) It varies with the state of progress in a country or area.

(6) Unless severe checks are imposed, both the volume and rate of migration tend to increase with
time.

3. Streams and Counter-streams of Migration:

The following factors determine streams and counter-streams of migration:
(1) Migration tends to take place largely within well-defined streams.
(2) For every major migration stream, a counter-stream also develops.

(3) The efficiency of the stream and the counter- stream tends to be low if the place of origin and the
place of destination are similar.

(4) The efficiency of the stream will be high if the major factors in the development of a migration
stream are minus factors at origin.

(5) The efficiency of the stream will also be high if the intervening obstacles are great.

(6) The efficiency of a migration stream changes with economic conditions of the country, being high
during prosperity and low during depression.

Lee concludes that migration is always selective and influenced by pull- push factors. Areas having
plus factors are first selected for migration. It is generally the pull factors which lead to migration to
urban areas rather than push factors, even though intervening obstacles do influence migration.

Concentric zone Model

Introduction:

Ernest Burgess was developer of this model. This model helps to define how different social groups are
located in a metropolitan area. Concentric Zone model is one of the well known and widely studied
model in urban planning. This model is known as the concentric zone model because the different
locations were defined in the form of rings around the core urban area around which city
grew. Burgess Model is another name for this model (given after the name of Ernest Burgess).
Concentric Zone Model or CCD model was developed between 1925 and 1929 based on the study of
American cities. Chicago city was studied for which Burgess provided empirical evidence.

Different zone in the Burgess Model or Concentric Zone Model

 

Zone I (Central Business District) – This is the center (innermost zone) where the central business
district is located and has highest land value. The zone has tertiary activities and earns maximum
economic returns. Another feature is the accessibility of the area because of the convergence and
passing of transport networks through this part from surrounding and even far places in the city. This
part has tall buildings and noticeably high density to maximize the returns from land. Commercial
activity taking place in the area results in negligible residential activity in this zone.
Zone II (Transition Zone) – The mixed residential and commercial use characterizes this zone. This is
located adjacent and around the CBD and is continuously changing, i.e. transition takes place. Another
feature is the range of activities taking place like mixed land use, car parking, cafe, old buildings. This
zone of transition is considered to “decay”  because of a large number of old structures as the buildings
in transition zone were earlier used for factories and tenement housing blocks. This zone had a high
population density when industrial activities were at their peak. Those residing in this zone were of the
poorest segment and had the lowest housing condition.
Zone III (Inner City/ Working Class zone) – This area is occupied for residential purpose and also
known as “inner city” or “inner suburbs.” It consisted of houses built to accommodate factory workers
but had better condition than the transition zone. This area has a mix of new and old development and
generally requires orderly redevelopment. People living in this zone are second generation immigrants
as many moves out of the transition zone to this zone whenever affordable. This zone is nearest to the
working area with modest living conditions, and this resulted in reduced commuting cost. Another
interesting feature includes the large rental housing occupied by single workers.
Zone IV (Outer Suburbs/ White Collar Homes)  – This zone had bigger houses and new development
occupied by the middle class. Many of the homes are detached, and unlike single occupants of inner
suburbs, families resided in these homes. Better facilities are available to the residents like parks, open
spaces, shops, large gardens but this comes at an increased commuting cost. This zone has a large area
of residential land. People living in this outer ring look for better quality of life.
Zone V (Commuter Zone)  – This is the peripheral area and farthest from the CBD, this resulted in
highest commuting cost when compared with other zones. Significant commuting cost gave the name
“commuter zone” to this part. People living in this part were high-income groups which could afford
large houses, could pay commuting charges, had access to different transportation mode, enjoy
modern facilities like shopping malls. Low rise development, large gardens, less population density are
some of the characteristics of this zone. This zone offered the highest quality of life and facilities but at
a cost of higher commuting cost.

The rationale behind Concentric zone theory

The Burgess model takes into account the positive relation between economic status and distance from
downtown which means better the economic status more the distance from the central area. The
central area has high density, and the availability of land is scarce. Because of this more affluent
segment of the society reside away from the city center where they can build large houses. Burgess
described the changing spatial patterns of residential areas as a process of “invasion” and “succession”.
As the city grew and developed over time, the CBD would exert pressure on the surrounding zone (the
zone of transition). Outward expansion of the CBD would invade nearby residential neighborhoods
causing them to expand outward. The process continues with each successive neighborhood moving
further from the CBD. His work included the study of bid rent curves according to which the land with
the highest rent was occupied with economic activities of highest returns. Zone of transitions are
important part of the burgess model as they are very active and change of people & activities takes
place constantly.
Limitations and Criticisms of Concentric zone model
 Although widely appreciated in the United States Burgess model is not applicable outside the US.
This is so, as the pattern of growth is different because of various circumstances.
 The relevance of this model decreased over time. With the advancement in the mode of
transportation, mass transit vehicles, motor vehicles, cars changed the way people commute.
Accordingly, their preference for living in a particular zone changed.
 It does not take into account the effect of political forces and the restrictions imposed by the
government for the improvement of living conditions.
 In reality, no distinct zones and boundaries exist as overlapping of areas is possible in every town.
The preference of people changes over time depending on the importance they associate for a
particular benefit.
 This model is not applicable to polycentric cities as many CDB exists in such towns. Moreover,
every city is different, and the factors influencing the growth of a city are diverse.
Adopted from: https://planningtank.com/settlement-geography/burgess-model-or-concentric-zone-model

Sector Theory
Introduction:
It is a model of urban land use proposed in 1939 by land economist Homer Hoyt. It is also known as
Hoyt Model. It is a modification of the concentric zone model of city development. Hoyt stated that
cities develop in the form of sector rather than rings. Hoyt suggested that few activities grow in the
form of sectors which radiates out along the main travel links. Activities in a sector are considered to be
the same throughout the sector because of the proposed function it serves. Land use within the each
sector would remain same because like attracts like. According to this model, major cities evolved
around the nexus of several important transport facilities such as railroads, seaports and trolly lines that
eliminated from the city's center.
Features of sector model
 Presence of low-income groups near industries supports Hoyt Model
 The Hoyt model realized that transportation (in particular) and access to resources caused a
disruption of the Burgess model.
 Transport linkages profoundly influence activities and their locations. Low transportation cost and
proximity to roads/railway reduce the cost of production.
 This model applies well to Chicago
 Account for major transportation routes and its effect on activities
Components of Hoyt Model
1. CBD – Central Business District is placed at the center. Sectors and the partial rings of land
use/activities take place. This area is often known as downtown and has high rise buildings.  Inner city
area or downtown area is a complex and dynamic organism. It represents many layers of historic
growth of many generations impact of cultural and traditions of men who inhabited the city as tourists.
The combinations of these layers and the way they are held together in the city gives imageability, out
of its socio-cultural heritage. As the cities expands and modern technology and scientific innovations
transformed the  style of living and also the  structure of the city, open spaces were being eaten up by
built forms resulting in congested and unhealthy environment.
2.Industry – Industries are represented in the form of a sector radiating out from the center. These
forms sector because of the presence of a transport linkage along which the activities grew. Presence of
railway line, river or road would attract similar activity, and thus a continuous corridor or “sector” will
develop.
Apart from the industries this area also serves as a residential area for lower class workers. Living
conditions are bad because of proximity to industries.

3. Low-Class Residential
Low-income groups reside in this area. Narrow roads, high population density, small houses with poor
ventilation exist in this area. Roads are narrow and often connects to the industries where most of the
people in this sector work. Closeness to industries reduces the travel cost and thus attracts industrial
workers. Environmental and living conditions are often inadequate because of the proximity to
factories.
4. Middle-Class Residential
This area has middle income groups who can afford more substantial travel cost and want better living
conditions. The activities of people residing in this area consist of different activities and not just the
industrial work. It has more linkages with CBD along with some linkages to industries. This area has the
most significant residential area.

5. High Class residential

This is the outermost and farthest area from the downtown. Wealthy and affluent people live in this
area. This area is clean, has less traffic, quiet and has large houses. Corridor or spine extending from
CBD to the edge has the best housing.

The significance of Hoyt Model 

 Ecological factors + economic rent concept to explain the land use pattern
 Stress on the role of transport routes in affecting the spatial arrangement of the city
 Both the distance and direction of growth from the city center are considered
 Brings location of industrial and environmental amenity values as determinants in a residential
place
 Example: Sectors of high-class residential areas tend to grow towards higher grounds, sites with a
better view, more open space, the homes of influential leaders within the community and existing
outlying, smaller settlements.
Limitations of Sector Model 
 Only Railway lines are considered for the growth of sectors and do not make allowances for
private cars.
  It is a monocentric representation of cities; multiple business centers are not accounted for in this
model.
 Physical features – physical features may restrict or direct growth along specific wedges
 No reference to out of town development

Adopted from: https://planningtank.com/settlement-geography/hoyt-model-sector-model-land-use-1939-homer-hoyt

Multiple Nuclei Model

Introduction
It is an economic model created by CD Harris and E.L Ulman in the 1945 article " The Nature of the Cities.
This model was based on Concentric Zone Model and Sector Theory. It describes urban land use in which a
city grows rom several independent points (nuclei) rather than from one Central Business District. Each
point (nuclei) acts as a growth center for particular kind of land use such as industry, retail, port, university,
etc. As this expand, they merge to form a single urban area.
Assumptions:
1. Land is not flat in all areas.
2. Even distribution of resources.
3. Even distribution of people in residential areas.
4. Even transportation costs.
5. Profit maximization.
Zones:
a. Central Business District (CBD)
It exists as a primary nucleus but multiple small business districts developed and distributed around the
metropolitan area.
b. Wholesale Light Manufacturing
Business are more consumer oriented and near residential areas. Manufacturing goods that need small
amounts of raw materials and space develop in this area.
c. Low Class Residential
People who live here tend to be factory workers and live in low income housing.
d. Medium Class Residential
It is a bit more desirable because it is located further from industry and pollution. People who work in the
CBD have access to good transportation lines making their commute easier.
e. High-Class Residential
It tend to be quite clean and have less traffic than the other ones.
f. Heavy Manufacturing
It is occupied by the factories that produce material that is heavy like chemicals, steel, etc
g. Outlying Business
It competes with the CBD for residents who live in nearby middle and high-class neighborhoods offering
similar services and products as the CBD.
h. Outlying Residential Area
It is usually single family homes on a small plot of land on the outskirts of the city.
i. Industrial Area
It is community created an zoned for industrial sources on outskirts of the city.
Criticism:
 Negligence of the height of buildings.
 Non-existence of abrupt divisions between zones.
 Each zone displays a significant degree of internal heterogeneity and not homogeneity.
 Unawareness of inertia forces.
 No consideration of the influence of physical relief and government policy.
 The concepts may not apply to Asian cities with different cultural, economic and political
backgrounds.
Role of Migration in Urbanization:

Approximately one in five international migrants are estimated to live in just 20 cities -Beijing, Berlin, Brussels,
Buenos Aires, Chicago, Hong Kong SAR, China, London, Los Angeles, Madrid, Moscow, New York, Paris, Seoul,
Shanghai, Singapore, Sydney, Tokyo, Toronto, Vienna and Washington DC.. For 18 of these cities, international
migrants represented around 20 per cent of the total population .

The share of foreign-born persons in the total population in some cities exceeds the global average (around
3.5%) by a large margin. Dubai has an foreign born population of close to 83 per cent, while in Brussels it is 62
per cent, in Toronto 46 per cent, New York 37 per cent, and Melbourne 35 per cent, to name a few examples.

Different types of migration play a role in urban growth and diversity, but to different extents. In the developed
countries, one of the main sources of population diversity is international migration, while in the developing
countries it is most likely internal migration (IOM, 2015), in addition to demographic growth through births
outnumbering deaths. 

In some countries, rural-to-urban migration and reclassification of what is considered urban together accounted
for more than half of the urban growth, such as in China and Thailand (80%), Rwanda (79%), Indonesia (68%)
and Namibia (59%) (UN, 2018). Circular and temporary migration is found in many urban parts of fast-urbanizing
Asian and African countries, especially China and India as well as Ghana and Kenya.

Migration also helps in urbanization by the following ways:

a.      Economic Ways
Most of the migrants migrate for work and most of them are semi-skilled. In the cities, they help to close the
skill gaps and proved an alternative to cheap labor. In 2015, migrants contributed $ 6.4 trillion to 6.9 Trillion
(9.4%) of the world’s GDP. Since most of the migrants live in cities, they also contribute in raising the revenues
of the cities. Migration can affect the overall economy of the receiving city through remittances. The migrant
labor also contributes in the healthy competition for skilled individuals.

b.     Social Ways

Most of the time, various people point out the fact that migrant can pressurize the infrastructure of the cities. Yet
one thing they forget that, most of the cities cope with the increasing migrants by developing their infrastructure.
If the traffic has increased, the cities will surely find an alternative of traffic jam. For eg: Various cities are
developing bullet trains in order to cope with traffic jam. If the schools and university are becoming crowded then
various schools and universities are built. Therefore, increasing migrants help to develop infrastructure and hence
causing urban places to develop more. Migrants are also a source of ideas and innovation who can contribute to
businesses, governments and other entities in the city. Their way of life, music and other creative endeavors  all
play a role in building the urban more urban to urban. 

Trend of Urbanization in Nepal:

Nepal’s urban growth is primarily characterised by
 an increase in the number of municipalities,
 an expansion in the urban area,
 a relatively steady increase in the urban population in the designated urban areas in the initial
years,
iv) a rapid increase of population in recent years,
  consistent increases in the percentage share of urban population to the total population and
rural population.
According to the Population Monograph of Nepal, reclassification contributed 38.8% of the urban
growth, internal migration contributed 19.9% of the urban growth and annexation contributed
1.5% of the urban growth.
Urban Places, Population Sizes and % Share of Urban Population form 1952/54 to 2014

Year Number of Population Urban Population as a Share of the Total population

Urban Size
Places
1952/5 10 238275 2.9%
4
1961 16 336222 3.7%
1971 16 461938 4%
1981 23 956721 6.4%
1991 33 1695719 9.2%
2001 58 3227879 17.9%
2011 58 4523820 17.1%
2014 130 7199514 27.2%
There has been a drastically increase in urban area and population from 1952/54 to 2001. In 1952/54, there were
only 10 urban places and the share of the urban population to the total population was only 2.9%. But in
2001, the number of urban places was 58 and the share of the urban population to the total population was
17.9%. The increase in the urban places was about 48 and the increase in population was about more than a
million. However, the period between 2001 and 2011 for urbanization was slow and steady, there was no
significant change in the urban. In 2014, the urbanization took a different level of pace, 2014 saw the increase
of urban places from 58 in 2011 to 130 , thanks to the reclassification, internal migration and annexation. The
share of the population has also increased from 17.1% to 27.2%.
Urban Population Growth Rates:
A general characteristics of the population growth rate in urban area of less developed countries is that the
population growth rate of urban area is higher than the total population growth rate of country. Since, Nepal is
also less developed countries, it also follows the same pattern.
Growth Rate of Urban and National total Population from 1961-2011

Year Nepal’s Growth Rate (%) Urban Growth Rate (%)

196 1.65 3.44
1
197 2.07 3.18
1
198 2.66 7.28
1
199 2.08 5.72
1
200 2.25 6.44
1
201 1.35 3.38
1
201 1.35 8.08
4
From the above mentioned data, it is clear that the growth rate of Nepal is higher than the growth rate of urban. In
1961 AD, the urban growth rate of Nepal was 3 times greater than Nepal’ growth rate. This same pattern is
followed in the succeeding years. In 2014 AD, the urban growth rate is about 8 time higher than the Nepal’
growth rate.
Rural-Urban Linkage:
It can be defined as the structural, social, economic, cultural and political relationships maintained between
individuals and groups in urban environment and rural environment. It can also refer to spatial and sectoral
flows that occur between rural to urban areas. The spatial flow means flow of people, goods, money,
technology, knowledge, information, etc. Sectoral flow refers flow of agricultural products going to urban
areas and goods from urban manufacturing areas going to more rural areas. Rural-urban linkage are connected
in nature and forms of migration, production, consumption, financial and investment linkages that occur
between rural and urban relationships. The exchange of money, goods, visits including social activities and
communication with relatives and friends are indicators of rural-urban linkage. The nature and form of rural-
urban linkage are not homogeneous as they are determined by the push and pull factors. The influence of push
and pull factors can differ from one place to another and for different sectors.
Patterns of Rural-Urban Linkage
The analysis of rural and urban linkage is important because rural and urban livelihoods are interconnected. As
incomes from agricultural decrease, rural households are forced to develop new and more complex forms of
livelihoods strategies which include both agriculture and non-farm incomes as well as remittances. New
spatial and sectoral patterns have emerged along the rural- urban continuum as a consequences of migration,
road accessibility, information technologies and production flows. Rural women tend to be particularly more
active in rural- urban trade. The relationship between rural and urban areas has been changing all over the
world due to the number of factors including new settlement patterns which can be linked to economic and
social transformations occurring throughout the world. The rural and urban areas are seen as the two end in a
spatial continuum. In between rural and urban areas, there are peri-urban areas where urban and rural areas are
spatially intermingled and interactions are most in tense. Peri-urban area lies in the middle of the continuum
between rural and urban characteristics. It has the mixed characteristics of rural and urban.
Importance of Rural-Urban Linkage:
 The positive rural-urban linkage can contribute to equitable development hence helps to acquire
regional balance.
 People of urban who are tired of the urban environment can enjoy rural environment due to the rural-
urban linkage.
 Rural-urban linkage helps the transfer of knowledge and information in the people between rural and
urban.
 Rural and urban linkage fulfills the need of the both rural and urban people.
 It helps to give a market for the agricultural and other products made in rural area and also helps the
rural people to consume healthy and locally made agricultural and other products.
  It helps the people of rural area to migrate in urban area for job and also helps rural women to sell
their products easily.
 It helps to fulfill the information, technology and development gap between the rural and urban area.
Urbanization:
It is a process which involve two phases:
a. movement of people from rural to urban places where they involve in secondary activities
b. change in lifestyle that results from leaving the countryside
Urban Settlement: It is a densely populated area comprising mostly man made structures.
Factors or Causes of Urbanization
i. Natural Increase in Population
One important cause of rapid urbanization is the natural increase in population. The number by which the birth
rate exceeds the death rate in urban area gives natural increase in population.  
ii. Migration from Rural Areas
In developing countries, urbanization usually occurs when people migrate from village to settle in cities in hope
of gaining a better standard of living. Migration is influence by economic growth and development an by
technological change and by conflict and social disruption.
iii. Boundary Changes
As cities expanded, the outlaying rural areas have been included in the urban areas. They may even continue to
retain the most of the characteristics of villages but they are counted as urban population by virtue of being
classified as urban areas.
iv. Industrialization
It is a trend representing the shift from old agricultural economy to novel non-agricultural economy which creates
modernized society. Through industrial revolution, more people have been engaged in secondary activities and
are attracted to move from rural to urban areas on the account of employment opportunities.
v. Commercialization
Commerce and trade play a major role in urbanization. The distribution of goods and services and commercial
transactions in the modern era has developed the modern marketing institutions and exchange methods that have
tremendously given rise to the growth of town and cities. Commercialization comes with the two perception that
towns and cities offer better commercial opportunities and returns compared to the rural areas.
vi. Social benefit and services
There are numerous social benefit found in the life of towns and cities like education, better living standards,
health care , etc. On this account, more and more people of rural area are prone to migrate into cities and towns
for achieving those benefits.
vii. Modernization and changes in the mode of living
As urban area is becoming more technology known with highly sophisticated communication, infrastructure and
liberalization, people believe that they can lead a happy life in cities. As a result, people migrate to other cities
and the cities grow by absorbing the growing number of people.

Human Rights and Social Justice:

International Humanitarian Law (IHL) and its Principle:
It is a set of rules which seek for humanitarian reasons to limit the effects of armed conflict. It is a branch of
international law which seeks to limit the effects of war by protecting those who are not participating in war
and by restricting and regulating the means and methods of warfare available to combatants. It regulates the
conduct of war.
Objectives of IHL:
1. To protect people who are not taking part in war.
2. To protect people who are no longer taking part in war.
3. To protect civilian population.
4. To restrict the means and methods of warfare.
Principle of IHL :
1. Principle of Distinction:
It protect civilian population and civilian objects from the effects of military operations. It demands the
distinction between military combatants and civilians.
2. Principle of Proportionality
It limits and protects the potential harm to civilians caused by the military advantage. It prohibits attacks which
cause loss of civilian life, injury to civilians, damage to civilian objects or combination of both.
3. Principle of Humane treatment
It demands that civilians should be treated humanely at all times. It prohibits violence to life and person
including cruel treatment and torture, taking hostages and execution without regular trial against non-
combatants. Civilians are entitled to respect for their physical and mental integrity, their honor, family rights,
religious convictions and practices and their manners and customs.
4. Principle of Non-Discrimination:
It is the core principle of IHL. The treatment of prisoners of war, civilians and wounded, sick or shipwrecked
persons should be done without any discrimination based on race, sex, nationality, religious belief or political
opinion.
5. Principle of Military Necessity
It permits measures which are necessary to accomplish a legitimate military purpose and are not prohibited by
the IHL. In the case of an ared conflict, the only legitimate military purpose is to weaken the military capacity of
the other parties.
6. Protection of attacks against sick, wounded and shipwrecked
All wounded and sick whether combatant or non combatant should be respected and protected. All possible
measures should be taken to search for and collect the wounded and the sick.
7. Prohibition on the infliction of unnecessary suffering
It prohibits the infliction of unnecessary suffering and superfluous injury. Under this protection, even fighters
who may be lawfully attacked are provided protection.
8. Protections of detainees
Persons detained for reasons related to the conflict should have their life and dignity protected. They are
allowed as a minimum healthcare, food, hygiene, appropriate shelter, minimal judicial guarantees, decent
working condition, freedom to practice their religion.
Provisions in the Geneva Conventions:
1. Provisions in the First Geneva Convention
a. Ambulances and hospitals should be considered as neutral as long as they accommodate wounded and sick.
b. Medical staff like Doctors should be considered neutral on their duty.
c. Inhabitants of the country who bring help to the wounded should be respected and remain free.
d. The treatments of wounded and sick should be done without any discrimination.
e. The symbol of Red Cross should be recognized as the means of identifying ambulances, hospital and
evacuation parties.
2. Provision of Second Geneva Convention
a. All the parties should protect and care for the wounded, sick and shipwrecked.
b. A warship cannot capture the hospital ships' staff but can hold the wounded, sick and shipwrecked as the
prisoners of war.
c. The neutral vessels should be allowed to collect and care for the wounded, sick and shipwrecked.
d. The hospital ships cannot be used for any military purpose and they should not be attacked or captured.
3. Provision of the Third Geneva Convention
a. The prisoner of the war are the responsibility of the state not the person who capture them.
b. The prisoner of war must be treated humanely without any discrimination and their medical needs must be
met.
c. The prisoner must not be tortured neither by physically nor mentally.
d. The prisoner of war must be treated as follows:
i. Allowed to correspond regularly with relatives and to receive relief parcel.
ii. Allowed to keep their clothes, feeding utensils and personal effects.
iii. Supplied with adequate foods and clothing.
iv. Provided with quarters not inferior to those of their troops.
v. Paid for any work they do.
vi. Repatriated if seriously ill or wounded.
vii. Quickly released and repatriated when hostilities case.
4. Provision of the Fourth Geneva Convention: Protected civilians must be-
1. Treated humanely at all times and protected against acts or threats of violence, insults and public curiosity.
2. Entitled to respect for their honour, family rights, religious convictions and practices, and their manners and
customs.
3. Specially protected, for example in safety zones if wounded, sick, old children under 15, expectant mothers
4. Enabled to exchange family news of a personal kind.
Social Inclusion and Social Exclusion:
Social Inclusion:
It is defined as the process of improving the terms of participation in society particularly for people who are
disadvantaged through enhancing opportunities, access to resources, voice and respect for human rights. World
Group defines the Social Inclusion as:
1. process of improving the terms for individuals and groups to take part in the society
2. process of improving the ability, opportunity and dignity of those disadvantaged on the basis of their identity
to take part in society
Values that underpin Social Inclusion:
1. Everyone is ready
2. Everyone can learn
3. Everyone needs support
4. Everyone can communicate
5. Everyone can contribute
6. Together we are better
Tools for Social Inclusion:
1) Participation with control
2) Empowerment and capacity development
3) Proportional representation
4) Reservation, special protection and subsidies
5) Legal protection
6) Awareness program
7) Investment in Human Development and poverty alleviation
8) Empower to weaker
9) Opportunity to excluded
10) Support to disadvantaged
Importance of Social Inclusion:
a. Every people feel valued.
b. Differences are respected.
c. Brings social justice.
d. Management of conflict.
e. Popular participation in governance system.
f. Institutionalization of democracy.
g. Natural unity and integrity.
Social Exclusion:
It is a multidimensional concept which refers to the deprivation in the economic, social and political sphere. It is
the process in which individuals are blocked or denied to various rights, opportunities and resources that are
normally available to the every members of the society. It is a form of discrimination.
Three features of Social Exclusion:
1. It involves culturally defined social categories with socio-cultural stereotypes.
2. It is embedded in social relations.
3. It affects people's rights and entitlements.
Symptoms of Social Exclusion:
1. Unequal access to resources.
2. Unequal participation
3. Denial of opportunities
Forms of Social Exclusion:
1. Political Exclusion:
It includes the denial of citizenship rights, political rights, basic rights, civil liberties and equal opportunities.
2. Economic Exclusion
It includes lack of access of labor markets, credit and the other forms of capital assets.
3. Social Exclusion
It includes the gender, ethnicity and age exclusion.
4. Cultural Exclusion:
It refers to the extent to which diverse values, norms and ways of living are accepted and respected.
Discrimination and its forms or modalities
Discrimination means treating a person unfairly because of who they are or because they possess certain
characteristics. It is the unfair or prejudicial treatment of people or group based on characteristics such as
race, age or sexual orientation.
Grounds of Discrimination:
1) Race
2) Color
3) Ancestry
4) National Origin
5) Marital Status
6) Religion
7) Familial Status
8) Age
9) Sexual Orientation
Forms of Discrimination:
a. Racism
It is a belief that particular race is superior or inferior to another and a person's social and moral traits are
predetermined by his or her inborn biological characteristics. It takes many forms and can happen in many
places and includes prejudice, discrimination or hatred directed at someone because of their color, ethnicity or
national origin. It includes all the barrier that prevent people from enjoying dignity and equality because of their
race. It hurts people freedom and dignity.
b. Religion or belief discrimination
It is treating a person or group differently because of the particular beliefs which they hold about a religion. It is
related to the religious persecution. It can take place in the form of harassment, direct discrimination. The
societies where there is Freedom of Religion, this type of discrimination is easily found.
c. Gender Discrimination
It is also known as sexism or sex discrimination. It is defined as the prejudice based on the sex. According to
CEDAW, gender discrimination is any distinction, exclusion or restriction made on the basis of sex. In patriarchal
society, women are discriminated because they have female body.
d. Age Discrimination
It is also known as agism. It is a discrimination against individual or groups on the basis of their age which may
be casual or systematic. It includes the discriminatory attitude towards older people, old age and aging process.
Composition of Nepalese Society according to the Population Census-2011
1. Caste/ Ethnicity
Broad Ethnic Sub-Category Race/linguistic Population
Category Family In %
1. Khas/Khas Khas (Chhetri)
Aryal / Parbate Khas (Bahun)
(Hill Caste Khas (Dalit) Indo-Aryan 39.37%
 Khas (Thakuri)
Group) Khas (Dashnami)
2. Janjati - Sino-Tibetan 27.28%
3. Madhesi Madhesi (Low)
( Terai Madhesi (Adibasi) Indo-Aryan & 31.96%
Caste/Tribal Madhesi (Dalit) Austro-Asiatic
Group) Madhesi (Muslim)
Madhesi (High)
4. Other
(Marwadi, - Indo-Aryan 0.32%
Bengali and
Punjabi)
5. Undefined - - 1.07%
and Foreigners
Total - 100%
Ethnic Groups of Nepal Population in Percentage
1. Kshetri 16.6%
2. Brahmin 12.2%
3. Magar 7.1%
4. Tharu 6.6%
5. Tamang 5.8%
6. Newar 5%
7. Kami 4.8%
8. Nepalese Muslims 4.4%
9. Yadav 4%
10. Rai 2.3%
 11. Other 12.2%
2. Languages
There are altogether 129 languages are spoken in Nepal according to the Population Census 2011.

Ran
Language Percentage
k

1 Nepali 44.64%

2 Maithili 11.67%

3 Bhojpuri 5.98%

4 Tharu 5.77%

5 Tamang 5.11%

6 Nepal Bhasa (Newari) 3.20%

7 Bajjika 3.3%
 Ran
Language Percentage
k

8 Magar 2.98%

3. Religion

Religion in Nepal (2011 Census)[15]

Religion Population Percentage

Hinduism 21,551,492 81.34%

Buddhism 2,396,099 9.04%

Islam 1,162,370 4.39%

Kirat 807,169 3.04%

Christianity 375,699 1.41%

Social Inclusion Practices in Nepal:

1. Constitutional Arrangements
Constitution of Kingdom of Nepal, 1990 has principally accepted inclusive governance and it was not realized
until the promulgation of Interim Constitution in Nepal 2007. Interim Constitution of Nepal adopted the
proportionate inclusiveness for disadvantaged and oppressed group and it was materialized in the Constituent
Assembly of Nepal 2008. It had also extended the fundamental rights of the citizen by including the rights of
women, right of children, right to social justice and so on. The sense of social inclusion has been further
intensified the Constitution of Nepal-2072. It has included the provision of acquiring citizenship from the name
of mother. It has increased the number of fundamental rights to 31 in number and some of the included
fundamental rights are- right to language and culture, right of Dalits, right of senior citizens. Constitution of
Nepal has provision of constitutional bodies like National Women Commission, National Dalit Commission,
National Inclusion Commission, Madhesi Commission, Adhibasi Janjati Commission, Muslim Commission, etc.
Article 84 of the constitution has ensured at least 33% of the women's participation in Federal Parliament and
Provincial Parliament. Article 215 and 222 has ensured the representation of women, Dalit or minority group in
the State mechanism.
2. Institutional Arrangement
Several initiatives have been taken by the government to mainstream inclusion through the arrangement of
different institutions. Government set the Ministry of Women, Child and Social Welfare in 1992. After 2 years,
National Committee for Development of Marginalized, Oppressed and Dalit Class was established. National Dalit
Commission and National Women Commission have also been established in 2002 AD . After the popular
People's Movement II, the government commissioned a high level Committee on Reservation to recommend
appropriate policy, mechanism and procedures for effective enforcement of reservation system. Following the
recommendation of high level commission, the government brought the reservation policy in 2007 for the
inclusive representation of women, Dalits, indigenous people, backward community and people with disability.
3. Bureaucratic Arrangement
The amendment of Civil Services Act in 2007 has ensured the representation of marginalized and excluded
group in the State mechanism. The Act after the amendment has the provision of 45% reservation seats.
Considering the vacant posts as 100%, 45% is fulfilled through inclusive competition exam and the rest of the
55% is fulfilled through open competition. Considering 45% as 100%, the inclusion is done by :
a. Female- 33%
b. Indigenous group-27%
c. Madhesi-22%
d. Dalit-9%
e. Candidates with Physical Disability-5%
f. Backward Districts-4%
4. Policy Arrangements
For the first time, the government of Nepal incorporated the policies and programs targeting for the
development of indigenous people, women, Madhesi, Dalits and other marginalized and excluded communities
in Ninth Five Year Plan. All periodic plans since 2000 AD has prioritized social inclusion. Local Self Governance
Act 1999 had provision for mandatory representation of disadvantaged groups in local bodies. The concept of
Social Inclusion and exclusion got concern in 10th Five Year Plan. 11th, 12th and 13th Three Year Plan focused
on Social Inclusion and Gender Equality. 14th Three Year Plan has incorporated " Gender Equality, Inclusion and
Mainstreaming" as a separate component of development.
Relationship between Human Rights and Social Justice:
Social Justice is a concept of fair and just relations between the individual and society as measured by
the distribution of wealth, opportunities for personal activity and social privileges whereas human rights are the
basic rights and ideas that everyone should have rights. The relationship between social justice and human rights
can be explained through these points:

a.      Promotion of Equality

Social justice and human rights have a shared goal .ie. human dignity and equality for all. The issues
that make social justice difficult to achieve such as poverty, exclusion and discrimination are in
direct contradiction with human rights which apply to all individual indiscriminately. Human rights
can help to fight indignity. For eg: Right to health should be secured for all as a part of respecting
human dignity.

b.     Anti-Discrimination

Both Social justice and human rights doesn’t exist in those places where there is discrimination.
Bothe social justice and human rights are anti-discrimination. Both argues that no one should be
discriminated and deprived from provision irrespective of caste, gender, religion, race and other man
made or biological constructions.
 c.      Welfare Systems

Human Rights and Social Justice argues for the welfare of the humanity. Human rights argues that
everyone should be treated equally and must have the provision like everyone. Social justice also
argues that everyone should have provision of food, shelter, clothes and other provision. Social
justice also argues that the benefits of the development must be reached to everyone.

d.     Participation

Both human rights and social justice talks about the participation. Human rights calls for the
participation from the right to work whereas social justice calls for the participation from every class
of society in order to make the better society.

e.      Government’s Accountability

Both human rights and social justice calls for the government’s accountability to make a better
society. Human rights call for the government’s action to implement and protect human rights of
every people whereas social justice calls the government’s for protecting and providing provision to
every class of the society.

Human rights and social justice are inter-related to each other. They not only share some common points but they
also can’t exist in the absence of another. In the absence of human rights, there will be discrimination, increase in
crime and tyranny, in this case the social justice can’t exist. In the absence of social justice, the existence of
human rights is a complete waste.

Political Rights:
It refers to an individual's ability to participate in the civil and political life of the society and state without any
discrimination and is tied closely to citizenship status. These are the rights that are exercised in the formation and
administration of a 
government given to the citizen by the constitution for administration and political participation.

Some Examples of Political Rights:

1. Right to vote
2. Right to get elected
3. Right to hold public offices
4. Right to petition
5. Right to form political parties
6. Right to criticize
7. Right to oppose the government 

Articles of ICESCR:
1. Right to Self-Determination.
2. Equality of Rights and Protection of Rights
3. Equality of Rights between men and women.
4. Limitations of economic, social and cultural rights in time of public emergency
5. No person has the right to destroy Rights
6. Right to work.
7. Right to enjoyment of just and favorable conditions of work.
8. Right to form trade Unions
9. Right to social security including social insurance.
10. Protection and assistance of the family.
11. Right to an adequate standard of living.
12. Right to enjoyment of highest attainable standard of physical and mental health.
13. &14. Right to education and provision of compulsory education.
15. Right to cultural life, scientific research and creative activities
Articles of UDHR:
Article 1: Right to Equality
Article 2: Freedom from Discrimination
Article 3: Right to Life, Liberty and Personal Securtiy
Article 4: Freedom from Slavery
Article 5: Freedom from Torture or Degrading Treatment
Article 6: Right to be recognized as a person before the law.
Article 7: Right to equality before the law.
Article 8:Right to remedy be competent tribunal
Article 9: Right to freedom from arbitrary detention
Article 10: Right to fair public hearing
Article 11: Right to be considered innocent until proven guilty
Article 12: Freedom from interference with privacy, family home and correspondence
Article 13: Right to free movement in and out of the country.
Article 14: Right to asylum in other countries from persecution
Article 15: Right to nationality and freedom to change it
Article 16: Right to marriage and family
Article 17: Right to own property
Article 18: Freedom of religion and belief
Article 19: Freedom of opinion and information
Article 20: Right to peaceful assembly and association
Article 21: Right to participate in government and free elections
Article 22: Right to social security
Article 23: Right to desirable work and join trade unions
Article 24: Right to rest and leisure
Article 25: Right to adequate standard of living
Article 26: Right to education
Article 27: Right to participate in cultural life and community
Article 28: Right to social order assuring human rights
Article 29: Community duties essential to free and full development
Article 30: Freedom from State and personal interference from the above rights
Articles of ICPCR:
1. Right to Self-Determination.
2.
Equality of Rights and Protection of Rights
3.Equality of Rights between men and women.
4. Limitations of economic, social and cultural rights in time of public emergency
5. No person has the right to destroy Rights
6. Right to life
7. Freedom from torture or cruel, inhumane or degrading treatment or punishment.
8. Freedom from slavery,slave trade or forced labor.
9. Right to liberty and security of the person.
10. Right of detained person to humane treatment.
11. Right to freedom from imprisonment for inability to fulfill a contractual obligation.
12. Right to freedom of movement and choice of residence.
13. Right of aliens to due process when expelled.
14. Right to equality before the law.
15. Right to visa-vis no crime without law.
16. Right to recognized as a person.
17. Right to privacy.
18. Right to freedom of though and expression.
19. Right to hold and express opinions without interference.
20. Propaganda for war shall be prohibited by the law.
21. Right to peaceful assembly.
22. Right to freedom of association.
23. Right of men and women to marry.
24. Right of the child to be treated as a part of the family,society and state.
25. Right and opportunity of every citizen to take part in public affairs directly or through his representative.
26. Right to equality before the law.
27. Right of minorities to enjoy their culture, religion,etc.
Civil Rights
These are the rights that every person should have regardless of his or her sex, race or religion. These are the rights
of personal liberty guaranteed to the citizen of any country by the constitutions of that 
country. These rights are an expensive and significant set of rights that are designed to protect individuals from
unfair treatment. These rights are the rights of individuals which help them to receive equal treatment in a number
of settings like-education, employment,housing, etc
Some Civil Rights are:
1.Right to life
2. Freedom from torture or cruel, inhumane or degrading treatment or punishment.
3.Freedom from slavery,slave trade or forced labor.
4.Right to liberty and security of the person.
5.Right of detained person to humane treatment.
6.Right to freedom from imprisonment for inability to fulfill a contractual obligation.
7.Right to freedom of movement and choice of residence.
8.Right of aliens to due process when expelled.
9.Right to equality before the law.
10.Right to visa-vis no crime without law.
11.Right to recognized as a person.
12.Right to privacy.
13.Right to freedom of though and expression.
14.Right to hold and express opinions without interference.
15.Right to peaceful assembly.
16. Right to freedom of association.
17.Right of men and women to marry.
18.Right of the child to be treated as a part of the family,society and state. 
12.Right and opportunity of every citizen to take part in public affairs directly or through his representative.
13.Right to equality before the law.
Child Rights:
Child rights are the human rights of children with particular attention to the rights of the special protection and care
afforded to the young including their right to association with both biological 
parents, human identity as well as the basic needs for food, universal state-paid education, health care and criminal
laws appropriate for the age and development of the children.
Classifications:
United Nations Educational Guides for children has classified the rights outlined in the CRC as the "3Ps":

1. Provision: Children have the right to an adequate standard of living, health care, education and services and to
play and recreation. These include a balanced diet, a warm bed to sleep and access to schooling.
 2. Protection: Children have the right to protection from abuse, neglect exploitation and discrimination. This
includes the right to safe places for children to play constructive child rearing behaviour and acknowledgment
of the evolving capacities of children.
3. Participation: Children have the right to participate in communites and have programs and services for
themselves. This includes children's involvement in libraries and community programs, youth voice activities
and involving children as decision makers.

Importance of Children Rights:

1. It considers children as individuals

2. It focuses on children to start their life as dependent beings on their parents or someone.
3. It focuses on government to take appropriate policies and actions for the children.
4. It focuses that children's views should be heard and considered in the political process.
5. It stresses on the healthy development of children.

Economic, Social and Cultural Rights:

These are the freedoms, privileges and entitlements that individual and communities require to live a 
life of dignity. These right include the right to food, housing, health, education, cultural identity and many more
Some examples of these rights are:
1. Right to work.
2.Right to enjoyment of just and favorable conditions of work.
3.Right to form trade Unions
4.Right to social security including social insurance.
5.Protection and assistance of the family.
6.Right to an adequate standard of living.
7.Right to enjoyment of highest attainable standard of physical and mental health.
8.Right to education and provision of compulsory education.
9.Right to cultural life , scientific research and creative activities
 10.Right to dispose income

Fundamental Rights Guaranteed by the Constitution of Nepal-2072:

1. Right to live with dignity (Article 16)

2. Right to freedom (17)
3. Right to equality (18)
4. Right to communication (19)
5. Right to justice (20)
6. Right of a victim of a crime (21)
7. Right against torment (22)
8. Right against preventive detention (23)
9. Right against untouchability and discrimination (24)
10. Right to property (25)
11. Right to religious freedom (26)
12. Right to information (27)
13. Right to privacy (28)
14. Right against exploitation (29)
15. Right to clean environment (30)
16. Right to education (31)
17. Right to language and culture (32)
18. Right to employment (33)
19. Right to labour (34)
20. Right to health (35)
21. Right to food (36)
22. Right to shelter (37)
23. Right of women (38)
24. Right of children (39)
25. Right of dalit (40)
 26. Right of senior citizen (41)
27. Right to social justice (42)
28. Right to social security (43)
29. Right of consumer (44)
30. Right against banishment (45)
31. Right to constitutional remedies (46)
Function of NHRC in Nepal:

1. Respect, Protect and Promote human rights and ensure effective enforcement of human rights.
2. Inquire on on petition or complaint sent to the Commission and investigate complaints about the
violations of human rights of an individual or group and make recommendation for action against the
perpetrators.
3. Recommend to the concerned authority to take departmental action against any official, who fails to
fulfill or perform his or her responsibility or duty or shows reluctance in preventing violations of human
rights.
4. Recommend to file a case in the court in accordance with law against any person or organization who has
violated human rights.
5. Coordinate and collaborate with the civil society in order to enhance awareness on human rights.
6. Carry out periodic reviews of the relevant laws relating to human rights and make recommendation to
the Government of Nepal for necessary improvements and amendments to such laws.
7. Recommend Government of Nepal for the implementation of any international treaty or agreement on
human rights, to which Nepal is a party.
8. Publish, in accordance with law, the names of the officials, persons or bodies who have failed to observe
or implement any recommendations or directives made or given by the Commission in relation to the
violations of human rights, and record them as violators of human rights.
Derogation of Human Rights:
It refers to the suspension or supression of human rights under particular circumstances like conflict, terrorism,
pandemic.The provision of human rights derogation is on ICCPCR Article 4.
Requirements for possible derogation under ICCPCR:

1. There must be existence of a public emergency like conflict

2. Derogation should be consistent with the other obligations under international law.
3. The derogation must be applied in a non-discrimination manner without a distinction based on race, color,sex,
language, religion or social origin.
4. The derogation must be related to the duration, geographical coverage and material scope of the derogation.
5. There must be official proclamation of human rights derogation.
6. State must inform the United Nations Secretary General about the derogation

Non-Derogable Rights in the ICCPCR:

1. Right to life.
2. Prohibition on torture, cruel, inhumane or degrading treatment.
3. Prohibition of slavery, slave trade and forced labor.
4. Prohibition on the imprisonment on the basis of inability to pay a contractual obligation.
5. Principle of legality in the field of criminal law.
6. Right to recognition as the person before the law.
7. Freedom of thought, conscience and religion.

Social Justice:
Introduction:
It is a concept of fair and just relations between the individual and society as measured by the 
distribution of wealth, opportunities for personal activity and social privileges. It assigns the rights and duties in the
institutions of the society which enables people to receive the basic benefits and 
burdens of cooperation.
Five Principles of Social Justice:

1. The poor should be placed at the center of development projects.

2. The institutions should be accountable for their actions.
3. The practice of development should be based on non-discrimination, equity and inclusiveness.
4. Citizen participation and voices should be heard and linked with national and international policy processes.
5. A linkage should be made between development and the legal institutionalization processes and legal rights
framework.

Importance of Social Justice:

1. It ensures that everyone gets the essentials for the good life.
2. It ensure everyone gets the adequate health care, education, food, etc.
3. It protects people from discrimination, disabled people.
4. It helps to promote economic equality.
5. It helps to improve educational opportunities.
6. It helps to promote equality between men and women.

Women Rights:
These are entitlements and freedoms claimed for women and girls of all ages in many
societies. In some places, these rights are institutionalized or supported by law, local custom and behavior whereas in
other countries they are ignored or suppressed. Issues commonly associated with the women's rights are: body
integrity and autonomy, vote, hold public office, work, fair wages , own 
property, education, serve in military. CEDAW adopted in 1979 by UN General Assembly is often described as an
international bill of rights for women. According to CEDAW, women should have right to:
1. Article 2 talks about equality between men and women.
2. Article 7 and 8 talks about the public life of women.
3. Article 9 talks about the nationality of women.
4. Article 10 talks about the education for women.
5. Article 12 is about the health care for women.
6. Article 13 talks about the economic and social life of women.
7. Article 17 is about the marriage choice for women.
8. Article 5 is about the elimination of stereotypes against women.
9. Article 3 is about the full development of women.
10. Article 6 is about the elimination of trafficking and exploitation of women.
11. Article 15 is about the equality before the law.