अनर्थ

Globalisation from Handbook of Statistics-RBI:

 GDP Growth 0.8% before 1947, 3.5% upto 1980 annually, 5.38% between 80-90 annually, 6.23% between 91-2007
annually, 7.06% between 2008-17 annually, 6.74% after 2017
 Azim Premji University  10% GDP growth generates just 1% employment
 Smooth transition of Agri-Industry-Service sector in US than in many countries including India. India did not see
any strong linkage among them. Especially service sector is largely disconnected with others
 These days, Agriculture sector  57% people contributes 17% of GDP,
 1% growth in Agri = 3% growth in other sector
 Overall growth in India Average 6.72% before 1991, 6.15% between 91-2007
o Growth rate of agriculture 3.39% before 1991 and -2.77% between 91-2007 annual decline
o Service 6.33% before 1991, 7.81% between 1991-2007; 8% in 2018
o No trickle down happened as Industry did not grew much and growth benefited only to educated
 https://www.facebook.com/UdayKulkarniWriter/posts/1012555812526698
Indian Diaspora:

A) Health:
a. 68% of urban and 57% of rural people do not go for medication properly
b. Government spending just 1.2% of GDP (2017) than expected 5%. Developed countries spend 7 to 10% as
per 2017
c. 0.6 doctors /1000 people against USA =2.25, China =1.8/1000 people
B) Education:
a. 41.5 crore did not go to school at all till 2015 (58% women and 42% men)
b. 42% children leave primary school, 41% girls get marries before age of 19
c. 26% fully illiterate. Out of 23% did not finished primary, 15.7% -10 th, 8.6% -12th, 4.5% -graduation
d. Condition of schools in India in 2016-17 as per dise.in
e. Total schools around 84 Lakhs, more than 50% has just a teacher or two, 59% students did not saw labs
f. All private school+ colleges gets fees +Donation of 36400 Crore which is 0.6% of GDP and 55% of HRD
ministry budget (Ankush and Ramesh Goyal article)
g. Ideally, 6% of GDP should be spent
i. India spends 2.7%, as per economic survey of 31 st Jan2017 US 5.4%, Brazil 5.8%, UK 6.2%
ii. Science education – China spends 1.9% of GDP, US 2.75%, India 1%
1. China GDP is 4times and US 8times than us.
2. Means China spends 9times and US spends 87 times more than us in Science education
and research
h. No of patents per 1 M population: US 910, Germany 2288, Japan 3716, S Korea 4451,, China 541 and India
17
i. PhD per 1 M population: US 20.4, Germany 34.3, UK 37.3, Japan 12.6, France 21.1, India 1.78
j. Research in government institutions lagging much behind doing fundamental research that foster
technological developments in the country.
i. Ref book- The entrepreneurial state-debunking public verses private sector myths – Mariyana
Mazzukotto
C) Agriculture:
a. 57% of population depends on agricultural means and producing just 17% of GDP
i. 75% of these 57% are either landless/ has < 5 acres land
b. Agriculture sector investments: 17% in 70s, 12% in 80s, 9% in 90 ..now just 5% in recent 5 yr plan
c. Government did not invested in irrigation, so farmers did massive tube well drilling to the extent that 75%
of irrigation is thru tube well now as per Mihir Shah (agri specialist)
d. Agricultural loans reduced from15% to 11% where as consumer loans went up from 8% to 23% in 91-
2004.
i. Banks are now listed so they prefer better P/L account than social responsibility. Agriculture
sector blamed to be huge NPA whereas industrialist are the biggest defaulters
e. Agri prices remain reasonable steady whereas input prices increased in a big way after globalisation.
i. Comparison: 1971: 1 quintal cotton = 10 gm gold; 2019: 1 quintal cotton = 1.5 gram of gold
ii. Result: 3.5 lakh suicides per year
f. Access to most of basic amenities are to just 10.1%. 67% do not have access to potable water at all.
D) Poverty and Inequality:
a. Widening gap between rich and poor
b. People below poverty line: US 13%, UK 20%, India =29.4% as per Rangarajan Committee report 2014. The
definition of poverty line is differs from country to country
c. Oxfam’s Public Good or Private Wealth and Global Wealth Data Book -credit Suisse
i. India: 9 rich people and world: 26 people has wealth >50% of bottom of pyramid,
ii. Wealth distribution as per Credit Suisse 2017:
1. India: 1% has 58.4%, 10% has 80.7% and bottom 60% has just 4.8%, bottom 90% has
just less than 19.3% wealth
a. Inequality is increasing: 2000 saw 1% has 36% wealth, 2014 has 49%, 2015%
has 53%, 2017 has 58.4%
b. 92% adults have less than $10000 wealth
2. US: 1% has less than 42.1%, 10% has 57.6%,
iii. Paul Krugman on Salary distribution – when salary of CEO /sal of bottom most is 100, inequality
begins and when reaches 1000, it’s a catastrophe
1. In US, 1965: 26 , 2003: 185, 2017: 271
2. India has this from 2000 to 1 lakh also
d. ET o 25/9/18
i. 92% women and 82% men earns less than Rs 10000/- (Min wedge act says Rs 18000)
ii. GDP contribution of women 17% in India as against 37% globally and 41% in China
iii. 1% gets more than 50000 Rs, 0.2% gets more than 1.6 lakhs Rs
e. Gini Coefficient: Measure of inequality
i. Scale 0 to 1, 1 being highest inequality
ii. Global Gini coefficient: 1913 =0.61; 1929 =0.62; 1950=0.64; 1960=0.64; 1980 =0.66; 1988 = 0.8;
1993 =0.76;1998 =0.74; 2003 =0.72; 2008 = 0.7; 2013 =0.65
iii. India 0.81 in 2003, 0.85 in 2014
f. Oxfam report 2017:Wealth produced distribution: bottom 50% gets 1% and top 1% gets 75%
g. Multidimensional poverty index suggest 27.5% are really poor
h. Global Hunger Index 2018 indicates that 25% of world’s hungry population is in India
i. Action against Hunger report 2018: 14.5% population was under real hunger
j. Read “Ash in the belley” and Heramb Kulkarni’s book
k. Silver line of the cloud: People commits suicide than declaring bankruptcy. It’s a culture.
E) Unemployment
a. Center for Monitoring Indian Economy on employment
i. 2012-2.2%, Jan2019 – 6.1%, April 2019 -8.1% with 20-25 yrs age group has 35%
ii. Mar 2019: Out of 130 crore only 40 crore were working i.e. 29.6%
b. Azim Premji University  10% GDP growth generates just 1% employment
c. GDP growth plus equal distribution is the key
d. Employment Exchange data is misleading as no 100% registration by job hunters
e. The basic reason of increasing employment  Inadequate educations, skillset deficiency, Automation,
apathy towards agriculture and S&MSE
F) Solutions and false claims
a. Keynes and John Miller: Agri and S&MSE investments increases employment and reduces inequality
b. Keynes: Marginal Propensity to Consume (MPC): Rich has less MPC as they spend less than the rise in
their income plus they spend high value product that needs less employment. Poor spend max of their
income and has more MPC. Hence, poor’s income should increase based on “bottom of pyramid”
principle and that raises the demand which helps to reduce inequality