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Alert for students

 

State-wise List of fake Universities as on 08^thDecember, 2009

Bihar
1. Maithili University/Vishwavidyalaya, Darbhanga, Bihar.
   Delhi
   
2. Varanaseya Sanskrit Vishwavidyalaya, Varanasi (UP) Jagatpuri, Delhi.
3. Commercial University Ltd., Daryaganj, Delhi.
4. United Nations University, Delhi.
5. Vocational University, Delhi.
6. ADR-Centric Juridical University, ADR House, 8J, Gopala Tower, 25 Rajendra Place, New Delhi - 110 008.
7. Indian Institute of Science and Engineering, New Delhi.
   Karnataka
   
8. Badaganvi Sarkar World Open University Education Society, Gokak, Belgaum, Karnataka.
   Kerala
   
9. St. John�s University, Kishanattam, Kerala.
   Madhya Pradesh
   
10. Kesarwani Vidyapith, Jabalpur, Madhya Pradesh.
    Maharashtra
    
11. Raja Arabic University, Nagpur, Maharashtra.
    Tamil Nadu
    
12. D.D.B. Sanskrit University, Putur, Trichi, Tamil Nadu.
    West Bengal
    
13. Indian Institute of Alternative Medicine, Kolkatta.
    Uttar Pradesh
    
14. Mahila Gram Vidyapith/Vishwavidyalaya, (Women�s University) Prayag, Allahabad, Uttar Pradesh.
15. Gandhi Hindi Vidyapith, Prayag, Allahabad, Uttar Pradesh.
16. National University of Electro Complex Homeopathy, Kanpur, Uttar Pradesh.
17. Netaji Subhash Chandra Bose University (Open University), Achaltal, Aligarh, Uttar Pradesh.
18. Uttar Pradesh Vishwavidyalaya, Kosi Kalan, Mathura, Uttar Pradesh.
19. Maharana Pratap Shiksha Niketan Vishwavidyalaya, Pratapgarh, Uttar Pradesh.
20. Indraprastha Shiksha Parishad, Institutional Area,Khoda,Makanpur,Noida Phase-II, Uttar Pradesh.
21. Gurukul Vishwavidyala, Vridanvan, Uttar Pradesh.

Mal Practices Alert

Through the United States Educational Foundation in India (USEFI), a Communication dated 11 February 2005 has been received from the State of Hawaii in USA conveying that a so-called Hawaii based unaccredited university is operating in India. American University of Hawaii (AUH) operating in India is not accredited by any recognized accrediting agency and not licensed or approved by the State of Hawaii. It claims to have affiliates, study centres and regional offices in some eighteen countries. It has almost no students or graduates in the United States and primarily issues degrees and diplomas to non-US citizens, including those in India. Office of consumer protection of the State of Hawaii has obtained an injunction from an appropriate court in Hawaii barring it from doing business as a university. Please see Full text of the Court's Judgment.

This is to alert the students and parents in India about this so-called university's operation in India. However, a clarification regarding University of Hawaii and American University of Hawaii is given in the communication dated September 7, 2005 received from USEFI.

Source : http://www.ugc.ac.in/inside/malprac.html

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Yosuda's

nuclear crisis & confidencial

http://wikileaks.org/cable/2007/03/07MUMBAI134.html http://wikileaks.org/cable/2009/12/09MUMBAI450.html

www.youtube.com/watch?v=_tjYoKCBYag

माझ्या प्रिय विद्यार्थ्यानो मित्रानो,

"पण सर्व मुल्जींस आहोत,

अभ्यास करा, महाविद्यालयाचे नाव मोठे करा, तुम्ही आपोआप मोठे होणार."

प्राध्यापक योसुदा,( मुल्जिंस)

संरक्षण अणि सामरिकशास्त्र विभाग,

Debate Competition

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Prof Yosuda

For PG

Kazakh president calls for tighter control over religious groups; Cameco signs MOU with Kazakh state-owned atomic firm; Chinese firms acquire Kazakh gas field; Kazakhstan hopes to join OECD as an observer before assuming formal membership

September 2011

Volume: 9; Issue: 1

August 22 - September 04

Country Review; Central Asia

The Kazakh president Nursultan Nazarbaev has called for tighter control over religious groups to protect the state from extremism. These comments by the President to the parliament came after the security forces in western Kazakhstan encountered suspected extremists, planning acts of terrorism. 1

In another development, Kazakhstan is interested in becoming a full-fledged member in the Organization for Economic Cooperation and Development (OECD), Kazakh Vice Prime Minister Yerbol Orynbayev said last week. The minister hopes that Kazakhstan will join the OECD first as an observer, and then inquire about assuming formal membership. Earlier this interest was expressed by Kazakh Prime Minister Karim Massimov during a state visit to France. 2

In the meanwhile, Canada’s leading uranium producer Cameco last week penned a tentative agreement with Kazakhstan to step up output by some 33 percent at a mine in the center of the country. In a memorandum of understanding (MOU) signed with its Kazakh partner and state-owned atomic firm Kazatomprom, the two plan to boost annual output of uranium at the Inkai mine from 3.9 million pounds to 5.2 million pounds.3 Also, Chinese conglomerate Xinjiang Guanghui Industry and China’s Weyn Investment have agreed to buy all shares in the Mangishlak Munay field in southern Kazakhstan from the Kazakh firm for $20 million. 4

Reports noted that leaders from several Central Asian states last week attended the inaugural China-Eurasia Expo in the western Chinese city of Urumqi. China hopes this expo, the largest of its kind in the western province of Xinjiang, will spur economic development in the impoverished region by forging critical trade links with neighboring states Kazakhstan, Kyrgyzstan, Tajikistan, Pakistan, Mongolia and India. 5 A Chinese commerce official, during the China-Eurasia trade expo in Urumqi, said that member states from the Russian- and Chinese-led Shanghai Cooperation Organization (SCO) should create a free trade region. The proposal, expressed at a meeting of high-level SCO officials in the capital city of Xinjiang Uighur Autonomous Region, would see a merging of smaller free trade areas into a single zone. 6

Reports noted that Kyrgyzstan has completed its accession to full membership of the Eurasian Development Bank (EDB). The bank was formed by Kazakhstan and Russia in 2006 to assist former Communist states in developing their markets. The other members include Tajikistan, Belarus and Armenia.7 In the meanwhile, villagers of Terek-Say in the Chatkal district of the southern Jalalabad province held a protest several days ago that blocked the road leading to the gold mine, located in Ala-Buka, a town near the border with Uzbekistan. Last week residents near a Chinese-run gold mine in Kyrgyzstan demanded to be hired or threatened to resume their disruptive protest rallies. The demonstrations are the most recent in a string of protests against Chinese firms in the volatile Central Asian republic. 8

According to reports, top officials from Tajikistan and the Kyrgyz Republic finalized the accord with their Afghanistan counterparts in the Thai capital Bangkok on the cross-border transportation pact that will accelerate the passage of people, goods and services between them. The Cross-Border Transport Agreement (CBTA) project is overseen by the Asian Development Bank (ADB).9 In the meanwhile, four-party summit on regional security was held on September 1, in Dushanbe between the leaders of Russia, Tajikistan, Afghanistan and Pakistan. Commenting on the results of the four-party summit earlier Russian President Dmitry Medvedev stated that the countries in Central Asia should ensure security in this region, and the assistance of other countries has an important but not decisive significance. 10

In other developments, the Russian President and his Tajik counterpart said, after the bilateral meeting, that Russia will remain at its three Tajik military bases for a further 49 years. Russia has approximately 7,000 troops stationed in three Tajik bases—Qurghonteppa, Kulob and Dushanbe. And in return, Russia provides Tajikistan military with high-tech weapons. 11

1. 1. “Kazakh president calls for tighter control of religious groups”, Radio Free Europe/Radio Liberty (RFE/RL), September 01, 2011 at http://www.rferl.org/content/kazakh_president_calls_for_tighter_control_of_religious_groups/24314953.html
2. 2. “Kazakhstan seeks OECD membership”, Universal Newswires, August 29, 2011 at http://www.universalnewswires.com/centralasia/kazakhstan/viewstory.aspx?id=10063
3. 3. “Canadian uranium firm Cameco readies Kazakh production increase”, Universal Newswires, September 01, 2011 at http://www.universalnewswires.com/centralasia/kazakhstan/viewstory.aspx?id=10087
4. 4. “Two Chinese firms to jointly acquire Kazakh gas field for $20M”, Universal Newswires, August 30, 2011 at http://www.universalnewswires.com/centralasia/kazakhstan/viewstory.aspx?id=10069
5. 5. “Central Asian leaders head to first-ever China-Eurasia expo”, Universal Newswires, September 01, 2011 at http://www.universalnewswires.com/centralasia/kazakhstan/viewstory.aspx?id=10094
6. 6. “China proposes free trade agreement for SCO states”, Universal Newswires, September 05, 2011 at http://www.universalnewswires.com/centralasia/kazakhstan/viewstory.aspx?id=10110
7. 7. “Kyrgyzstan completes accession to EDB”, Universal Newswires, August 30, 2011 at http://www.universalnewswires.com/centralasia/kyrgyzstan/viewstory.aspx?id=10072
8. 8. “Kyrgyz residents threaten protests on Chinese mine”, Universal Newswires, August 30, 2011 at http://www.universalnewswires.com/centralasia/kyrgyzstan/viewstory.aspx?id=10067
9. 9. “Afghanistan to join Central Asian cross-border transport agreement”, Universal Newswires, August 30, 2011 at http://www.universalnewswires.com/centralasia/kyrgyzstan/viewstory.aspx?id=10066
10. 10. “Medvedev, Pakistan president discuss regional security in Dushanbe”, Itar Tass, September 02, 2011 at http://www.itar-tass.com/en/c154/217023.html
11. 11. “Russia to extend lease of Tajik military bases by 49 years”, Universal Newswires, September 02, 2011 at http://www.universalnewswires.com/centralasia/tajikistan/viewstory.aspx?id=10102

Source :
http://www.idsa.in/

Good Job's opportunity

Union Public Service Commission (UPSC)

Dholpur House, Shahjahan Road, New Delhi-110069

Advt. No. 16/2011 http://www.upsc.gov.in/
Published by indiansarkarinaukri.com
Last Date : 15/09/2011 (22/09/2011 for Far Flung Area)

 Union Public Service Commission (UPSC) by Its Advertisement No. 16/2011 has invited applications for the various posts of Assistant Commissioner, Director, Research Officer, Lecturer, Scientific Officer, Drug Controller etc. posts in the different department by Direct Recruitment more details as followed :-
Assistant Commissioner (Fishing Harbour) : 01 post, Ministry of Agriculture
Scientist-SB (Physical-Civil) : 01 post, Ministry of Consumer Affairs
Deputy Assistant Director (Police Science) : 03 posts, Ministry of Home Affairs
Deputy Drugs Controller : 05 posts, Ministry of Health & Family Welfare
Deputy Legislative Council : 01 post, Ministry of Law & Justice
Training Officer : 02 posts, (Machine Tool Maintenance-01, Turner-01) Ministry of Labour & Employment
Assistant Controller : 05 posts, Indian Bureau of Mines M/o Mines
Deputy Ore Dressing Officer : 01 post, Indian Bureau of Mines
Jr. Lecturer (Textiles) : 01 post, Ministry of Textiles
Research Officer : 09 posts, (Civil Engineering-08, Scientific Geophysics-01), Ministry of Water Resources
Sr. Scientific Officer Grade-II (Lie Detector) : 03 posts, Central Bureau of Investigation M/o Home Affairs
Senior Lecturer (Anatomy) : 01 post, Dept. of Medical Education & Research, Chandigarh
Lecturer ( Hotel Management) : 01 post, Dr. B.R. Ambedkar Institute of Technology, Andaman & Nicobar
Senior Scientific Officer : 04 posts, Central Bureau of Investigation, M/o of Home Affairs
Reservations & Age Relaxations available & as Government of India rules
Application Fee : Rs.50/- through “Central Recruitment Fee Stamp” (CRFS) available in all Post Offices. SC/ST/PH/Women Candidates are exempted from application fee.
How to Apply : Applications in the prescribed format along with fee and all necessary documents, certificates & complete in all respects should reach to “Joint Secretary (Recruitment), Union Public Service Commission, Dholpur House, Shahjahan Road, New Delhi-110069 on or before 15/09/2011 (22/09/2011 for Far Flung Area).
Note : Any other related information will be immediately updated as and when updated by the concerned website so keep watching this post for all latest updates.
For UPSC Advt, No. 16/2011 Research/Scientific Officers Drug Controller Jobs Complete details like Reservations, Age Relaxations, Qualifications, Eligibility Criteria, Selection Process, Application Form Format etc. Please View : http://www.upsc.gov.in/ Or see the Employment News & Rozgar Samachar 27/08/2011 vide Advertisement No. 16/2011
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Tehran pulls the strings of Gaza missile war, proxy Jihad Islami leads.

                                

                        The role of Iran and Hizballah in manipulating the ongoing Palestinian war on Israel from Gaza is manifest, DEBKAfile's military sources report. They planned, orchestrated and funded the coordinated attacks on the Eilat Highway Thursday, Aug. 18 and its sequel: volleys of 90 missiles launched day and night from Gaza against a million Israeli civilians. The Netanyahu government is hesitating to send the IDF into Gaza to stop the missile war because the same aggressor may open another front leading to a regional war.
                        Yossi Ben-Shoshan, 38, from Ofakim, was killed by one of the dozen Grad missiles hitting Beersheba and his home town Saturday night. More than a dozen people were injured, at least one critically.
The prime mover in the missile blitz is Tehran's Palestinian arm, the Jihad Islami to which Iran transferred 10,000 missiles under Egyptian, Israeli and US noses, well in advance of the violence launched three days ago. Most of them are heavy Grads have brought Beersheba, capital of the Negev and Israel's 7th largest town (pop. 200,000) into their 30-kilometer range for a sustained, massive missile offensive.
                       America and Israel are paying in full the price for their quiescence in the face of Iranian, Hizballah and extremist Palestinian belligerence and active preparations for war.

Source : DEBKAfile Exclusive Report

Prof Yosuda.

Join Indian Defence Organisation.



India Force



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Join Indian Army, Navy & Airforce have need 13000 officers.
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International Relations in Modern Times (DS IV Study)

Foreign Minister Hina Rabbani Khar visits China; China-Pakistan hold talks; Four militants killed in drone attack; Pakistani slain Governor Salman Taseer’s son abducted; NATO tankers attacked in Balochistan

August 2011;Volume:8 ;

Issue: 4;August 22-28 ;Country Review

South Asia ; Pakistan

In a significant development, Pakistani Foreign Minister Hina Rabbani Khar said that Pakistan does not want to be used as a ground for terrorists to carry out their activities. This comes on the wake of her two day visit to China. Khar held talks with her Chinese counterpart Yang Jiechi and met Premier Wen Jiabao. She stressed upon the need for closer cooperation between China and Pakistan. She also noted that Pakistan was increasing its counter-terrorism cooperation with China. 1

However, a US drone attack killed at least four militants travelling in a vehicle in Northern Waziristan area of Pakistan. The unmanned aircraft fired two missiles at the vehicle and killed at least four militants in the strike, one security official reported. The incident took place in Nurak area, 20 km away from Miranshah, main town in North Waziristan. 2

According to reports, slain Governor Salman Taseer’s son Shahbaz Taseer was abducted by unknown gunmen while on his way to work. A high alert has been declared, internal routes and highways were sealed amid calls for swift action by both the federal and Punjab governments. Prime Minister Yousuf Raza Gilani called up the Taseers by telephone to show his solidarity with the family and assure them of all-out efforts to secure Shahbaz Taseer’s safe return. 3

In other developments, reports noted that a dozen gun men attacked nineteen NATO tankers in Mastung district of Balochistan. The tankers were carrying fuel to Afghanistan. Militants have frequently targeted NATO supply trucks over the past few years, but attacks have intensified since the killing of Al Qaeda chief Osama bin Laden by US Special Forces on May 2, 2011. 4

1. 1. “Pakistan doesn’t want to be used by militants, says FM Khar”, Dawn, August 24, 2011 at http://www.dawn.com/2011/08/24/pakistan-china-holding-talks-in-beijing.html
2. 2. “US Drone attack kills four militants in North Waziristan”, Dawn, 22 August , 2011 at http://www.dawn.com/2011/08/22/us-drone-attack-kills-three-militants-in-north-waziristan.html
3. 3. “Slain Salman Taseer’s son kidnapped”, Dawn, August 27, 2011 at http://www.dawn.com/2011/08/27/slain-salman-taseers-son-kidnapped.html
4. 4. Nineteen NATO tankers torched in Balochistan, Dawn, August 22, 2011 at http://www.dawn.com/2011/08/22/nineteen-nato-tankers-torched-in-balochistan.html

http://www.idsa.in/

 

GK For PG Students

President Lee Myung-Bak signs deals with Kazakhstan and Uzbekistan; KazMunaiGas Exploration Production signs four new exploration contracts; National Bank of Kazakhstan to decrease gold exports; Kazakhstan to bring in reforms to privatize economy and prom

      In a significant development, South Korean President Lee Myung-Bak as part of his Central Asian tour, signed $8 billion worth deals with Kazakhstan. One project, worth $4 billion, will see South Korean firm LG Chem jointly build a petrochemical complex in Kazakhstan and the other $4 billion project involves building a coal-powered electricity-generating plant in southern Kazakh city, Balkhash. 1In Uzbekistan, the South Korean President, signed an agreement to support Uzbekistan’s plans to develop the Surgil gas field, located near the Aral Sea. The Uzbek State Committee for Geology and Mineral Resources forged a joint venture with South Korean Shindong Resources to explore and develop the Sautbay tungsten deposit in the north-central Navoi region. The two sides signed the $120 million deal during the Uzbek-Korean business forum. 2

In another development, Kazakhstan energy major KazMunaiGas Exploration Production (KMG EP), the listed arm of Kazakh state oil and gas company KazMunaiGas (KMG), announced that it had finalized an agreement to acquire 100 percent subsoil use rights to explore four hydrocarbon blocks— Temir and Teresken blocks in northwestern province of Aktobe; Karaton Sarkamys block in the Atyrau province; and fourth contract is adjacent to the oilfields of Uzen and Karamandybas. It is estimated that the four blocks hold around 1.5 billion barrels of oil. 3

In the meanwhile, the National Bank of Kazakhstan on August 23rd reiterated its right to buy “in full” the gold produced in Kazakhstan in order to maintain its reserves. The move is expected to decrease the amount of gold exported by Kazakhstan. 4

According to Kazakhstan’s Economy Minister Kairat Kelimbetov, Kazakhstan plans to launch the first wave of share flotation for several of its state firms around the middle of 2012. Between 5% and 15 % of some national companies will be sold on the Kazakhstan stock exchange in the ‘People’s IPO’. Some of these companies are KazTransOil, Air Astana, Kazakhstan Electronic Grid Operating Company (KEGOC) and Samruk-Energo. 5 A second wave of public stock sales will follow in 2013 and other enterprise shares will be floated in 2014 and 2015. In the meanwhile, Kazakhstan will restructure the existing six special economic zones (SEZs) and create three new ones to spur economic growth, Kazakh Minister of Industry and Trade Asset Issekeshev announced last week. 6

In other developments in the region, the Japanese Embassy in Kyrgyzstan announced that Japan will provide an emergency grant of $350,000 to partially finance Kyrgyzstan’s upcoming presidential election, to be held on October 30, 2011. Interim President Roza Otunbayeva earlier estimated the cost of the Kyrgyz presidential poll to be $10 million, and had expressed concern that the country would not be able to afford it. 7

1. 1. “Korea signs $8B in deals with Kazakhstan”, Universal Newswires, August 25, 2011 at http://www.universalnewswires.com/centralasia/viewstory.aspx?id=10042
2. 2. “Korea-Uzbek trade can hit $10B, Korean leader says”, Universal Newswires, August 25, 2011 at http://www.universalnewswires.com/centralasia/viewstory.aspx?id=10041
3. 3. “Kazakh energy major signs four new exploration contracts”, Universal Newswires, August 24, 2011 at http://www.universalnewswires.com/centralasia/viewstory.aspx?id=10025
4. 4. “Kazakh central bank reemphasizes purchase rights to all Kazakh gold”, Universal Newswires, August 23, 2011 at http://www.universalnewswires.com/centralasia/viewstory.aspx?id=10019
5. 5. “Kazakhstan to launch people’s IPO in mid-2012”, Universal Newswires, August 23, 2011 at http://www.universalnewswires.com/centralasia/viewstory.aspx?id=10017
6. 6. “Existing Kazakh SEZs to be restructured, minister says”, Universal Newswires, August 22, 2011 at http://www.universalnewswires.com/centralasia/viewstory.aspx?id=10009
7. 7. “Japan provides financial assistance for Kyrgyz presidential poll”, Universal Newswires, August 23, 2011 at http://www.universalnewswires.com/centralasia/kyrgyzstan/viewstory.aspx?id=10018

Latest Event - GK

North Korea-Russia Summit held after nine years

         

               According to reports, after nine years, North Korea-Russia summit was held recently on August 24 at Ulan-Ude, the capital of the Russian republic of Buryatia. While North Korean leader Kim Jong-Il led the delegation from Pyongyang, the Russian side was led by President Dmitri Medvedev. During the summit, issues such as the resumption of the Six Party Talks and the project of an overland pipeline transporting Russia natural gas to South Korea via the North...

Save Girls

स्त्रीभ्रुणहत्या रोखा,
वाघांना नंतर वाचवा, पहिले मुली वाचवा...
कारण बाईकवर पाठीमागे कोण हवं आहे, मुलगी की वाघ ?..
Think Positive for Humanity...

Prof Yosuda

Muljian's

Defence Economics

*Mooljian's*

M A I Defence & Strategic Studies

DS I Defence Economics

Semester - I

------------------------------------------------------------------------------

Prof Yosuda

Chapter–1 Contemporary Economic Theories – Adam Smith, Marsha, Say and Keynes

a)    Economic Welfare and National Income – Meaning, Scope, Relation between Economics welfare & National Income.

b)    Gross National Product and Gross domestic product Definition & concept.

Chapter – 2 India’s Economic Planning

a)    Defence Budgeting Objectives & Functions.

b)    Principles of Defence budget.

c)     Parliamentary control over the budgeting

d)    Determinant & Performance of Defence budget.

Chapter – 3 Analysis of India’s Defence Expenditure since 1947 to

                    till date

Chapter – 4 Resources of mobilization for war and their problems

a)    Economic Mobilization.

b)    Man – Power mobilisation.

c)     Natural Resources Mobilisation

d)    Industrial Mobilisation

e)     Technical Mobilisation

Chapter – 5 Defence and Development

a)    Future Technology and Defence expenditure – Nuclear space, Dual Technology.

b)    Gun – butter problem

---------------------------------------------------------------------------------------------------------

Reference Books:

1)    Indian Economy ; Mishra S.K.P. & Puri V K  

2)    Self reliance & Security, Birla Institute of Research

3)    Defence Production in India, Raju Thomas

4)    Reading in Economics of War; Clark Marice.

5)    Economics of the Defence in the age; Charies J. Hitech.

6)    Perspective in Defence Planning; K Subrahmanyam.

7)    India’s defence Budgeting; Ghosh Ameya Kumar

8)    India’s Defence Budget & Expenditure; Ghosh Ameya

9)    India’s Defence spending; Comdr. Jasjeeting,

10)   Annual Report Ministry of Defence

11)   Military Year Book (Various Years)

12)   Defence Economics; Rajkumar.

13) Intenet Source Material

ooo --------------------------------------- ooo

 Learning outcomes

After studying this unit, you should be able to:

v    Define welfare

v    Know different types of welfare

v    Distinguish between economic welfare and non economic welfare

v    Relate national income and economic welfare

v    Know per capita as an indicator of economic welfare

 INTRODUCTION:

         

          Now we are doing a very interesting chapter which is related to the welfare of the economy. This chapter will give an idea about the economic welfare and its relationship with national income. Apart from this you will also be able to distinguish between economic welfare and non economic welfare. We all know that National income is treated as an index of the economic performance of a country. A country with higher level of national income and per capita income will be more advanced and developed than the country which has a low level of national income and per capita income. An increase in the national income of the country implies that there is increasing availability of goods and services in the country. More goods and services mean higher level of consumption and standard of living.

Therefore it is believed that economic welfare depends on national income.

What is Economic Welfare?

          Before knowing the relation between economic welfare and national income, it is essential to define economic welfare. Welfare is a state of the mind which reflects human happiness and satisfaction. In actuality, welfare is a happy state of human mind. Pigou regards individual welfare as the sum total of all satisfactions experienced by an individual; and social welfare as the sum total of individual welfares. He divides welfare into economic welfare and non-economic welfare. Economic welfare is that part of social welfare which can directly or indirectly be measured in money. Pigou attaches great importance to, economic welfare because welfare is a very wide term. In his, words:

          "The range of our enquiry becomes restricted to that part of social (general) welfare that can be brought directly or indirectly into relation with the measuring rod of money."¹ On the contrary, non-economic welfare is that part of social, welfare which cannot be measured in money, for instance moral welfare.But it is not proper to differentiate between economic and non-economic welfare on the basis of money. Pigou also accepts it. According to him, non-economic welfare can be

 improved upon in two ways. First, by the income-earning method. Longer hours of working and unfavorable conditions will affect economic welfare, adversely. Second, by the income-spending method. In economic welfare it is assumed that expenditures incurred on different consumption goods provide the same amount of satisfaction, but in actuality it is not so, because when the utility of purchased goods starts diminishing the non-economic welfare declines which results in reducing the total welfare. But Pigou is of the view that it is not possible to calculate such effects, because non-economic welfare cannot be measured in terms of money. The economist should, therefore, proceed with the assumption that the effect of economic causes on economic welfare applies also to total welfare. Hence, Pigou arrives at the conclusion that the increase in economic welfare results in the increase of total welfare 'and vice versa. But it is not possible always, because the causes tl1at lead to an increase in economic welfare may also reduce the non-economic welfare. The increase in total welfare may, therefore, be Jess than anticipated. For instance, with the increase in income, both the economic, welfare and total welfare increase and vice versa. But economic welfare depends not only on the amount of income but also on the methods of earning and spending it. When the workers earn more by working in factories but reside in slums and vitiated atmosphere, the total welfare cannot be said to have increased, even though the economic welfare might have increased. Similarly, as a result of increase in their expenditure proportionately to, income, the total welfare cannot be presumed to have increased, if they spend their increased income, on harmful commodities like wine, cigarettes etc. Hence, economic welfare is not an indicator of total welfare.  

Relation between Economic Welfare and National Income

          Pigou establishes a close relationship between economic welfare and national income, because both of them are measured. in terms of money. When national income increases, total welfare also increases and vice-versa. The effect of national income on economic welfare can be studied in two ways:.

I. Changes in size of national income and economic welfare

II. Change in the composition of national income and economic welfare

III. Changes in the distribution of national income and economic welfare.

(i) The change in the size of national income and economic welfare:

     There is direct relationship between size of national income and economic welfare. The changes in the size of national income and economic welfare may be positive or negative. The positive change in the national income increases its volume, as a result people consume more of goods and services, which. leads in increase in the economic welfare. Whereas the negative change in national income results in reduction of its volume; People get lesser goods and services for consumption which leads to decrease in economic welfare. But this relationship depends on a number of factors.

          Is the change)n national income real or monetary? If the change in national income were due to change in prices, it would be difficult to measure the real change in economic

welfare. For example, when the National income increase as a result of increase in prices, the increase in economic welfare is not possible because it is probable that the output of goods and services may not have increased. It is more likely that the economic welfare would decline as a result of increase in prices, It is only the real increase in national income that increases economic welfare.

          Second, it depends on the manner in which the increase in national income comes about. The economic welfare cannot be said to have increased, if the increase in. national income is due to exploitation of labour, e.g. to increase in production by workers working for longer hours, by paying them lesser wages than the. minimum. Thus, forcing them to put their women and children to work, by not providing then with facilities of transport to and from the factories and of residence, and their residing in slums.

          Third, national income cannot be a reliable index of economic welfare, if per capita income is not borne in mind. It is possible that with the increase in national income, the population may increase at the same pace and thus the per capita income may not increase at all. In such a situation, the increase in national income will not result in in-crease in economic welfare. But from this, it should not be concluded that the increase in per capita income results in increase in economic welfare and vice versa.

          It is possible that as a result of increase in national income, the per capita income might have risen. But if the national income has increased due to the production of capital goods and there is shortage of consumption goods on account of decrease in their output the economic welfare will not increase even if the national income and per capita income rise. This is because the economic welfare of people depends not on capital goods but on consumption goods used by them. Similarly, when during war time the national income and the per capita income rise sharply; the economic welfare does not increase because during war days the entire production capacity of the country is engaged in producing War material and there is shortage of consumption goods. As a result, the standard of living of the people falls and the economic welfare decreases.

          Often, even with the increase in national income and per capita income the economic welfare decreases. This is the case when as a result of the increase in national income, income of the richer sections of the society increases and the poor do not gain at all from it. In other words, the rich become richer and the poor become poorer. Thus when the economic welfare of the rich increases, that of the poor decreases. Because the poor are more than the rich!, the total economic welfare decreases.

          Last, the influence of increase in national income on economic welfare depends also on the method of spending adopted by the people. If with the, increase in income, people spend on such necessities and facilities, as milk, ghee, eggs, fans, etc., which increase efficiency, the economic welfare will increase. But on the contrary, the expenditure on drinking, gambling etc. will result {n decreasing the economic welfare. As a matter of fact, the increase or decrease in economic welfare as a result of increase in national income depends on changes in the tastes of people. If the change in fashions and tastes takes place in the direction of the consumption of better goods, the economic welfare

increases, otherwise the consumption of better goods, decreases. It is clear from the above analysis that though the national income and economic welfare are closely inter-related, yet it cannot be said with certainty that the, economic welfare would increase with the increase in national income and per capita income. The increase or decrease in economic welfare as a result of increase in national in come depends on a number of factors such as the rate of growth of population, the methods. of earning income the conditions working; the method of spending, the fashions and tastes, etc.

(ii) Changes in the composition of national income and economic welfare: composition of national income refers to the kind of the goods and services produced in the country. Change in the composition of national income may sometimes increase economic welfare and may at another time decrease it.

Changes in the distribution of national income and economic welfare:

Changes in the distribution of national income and economic welfare take place in two ways:

First, by transfer of wealth from the poor to the rich, and

Second, from the rich to the poor. When as a result of increase in national income, the transfer of wealth takes place in the former manner, the economic welfare decreases. This happens when the government gives more privileges to the richer sections and imposes regressive taxes on the poor.

          The actual relation between the distribution of national income and economic welfare concerns the latter form of transfer when wealth flows from the rich to the poor. The redistribution of wealth in favor of the poor is brought about by reducing the wealth of the rich and increasing the income of the poor. The income of the richer sections can be reduced by adopting a number of measures, e.g., by progressive taxation on income, property etc., by imposing checks on monopoly by nationalizing social services, by levying duties on costly and foreign goods which are used by the rich and so on. On the other hand, the income of the poor can ,also be raised in a number of ways, e.g., by fixing a minimum wage rate, by increasing the production of goods used by the poor, and by fixing the prices of such goods. By granting financial assistance to the producers of these goods, by the distribution of goods through cooperative stores, and by providing free education, social security and low rent accommodation to the poor. When through these methods the distribution of income takes, place ill favor of the poor, the economic welfare increases.

          Pigou has expressed this in these words: "Any cause which increases the absolute, share of real income in the hands o(the poor, provided that it does not lead to a contraction in the size of national dividend from any point of view will, in general increase economic welfare."

But it is not essential that the equal distribution of national income , would lead to increase ,in economic welfare. On the contrary, there is a greater possibility of the  economic welfare decreasing if the policy towards the rich is not rational. Heavy taxation and progressive taxes at high rates affect adversely the productive capacity, investment and capital formation, thereby decreasing the national income. Similarly, when through the efforts of the Government the income of the poor increases but if they spend that income on bad goods like drinking, gambling etc. or if their population increases, the economic welfare will decrease. But both these situations are not real and only express the fears, because the government. while imposing different kinds of progressive taxes on the rich, keeps particularly in view that taxation should not affect the production and investment adversely. On the other hand, when the income of a poor man increases he tries to pro vide better education to his children and to improve his standard of living. Thus we arrive at the conclusion that as a result of the increase in national income, the economic welfare will increase provided that the income of the poor increases instead of decreasing and they improve their standard of living and that the income of the rich decreases in such ,a way that their productive capacity, investment and capital accumulation do not decline.

National Income 'as a Measure of Economic Welfare

NDP at factor cost = Compensation of employees + Net interest + Rental & royalty income + Profit of incorporated and unincorporated firms + Income from self-employment.

National income = NDP at factor cost + NFIA (net factor income from abroad).

The expenditure approach

The expenditure approach is basically an output accounting method. It focuses on finding the total output of a nation by finding the total amount of money spent. This is acceptable, because like income, the total value of all goods is equal to the total amount of money spent on goods. The basic formula for domestic output combines all the different areas in which money is spent within the region, and then combining them to find the total output.

GDP = C + I + G + (X - M)Where:
C = household consumption expenditures / personal consumption expenditures
I = gross private domestic investment
G = government consumption and gross investment expenditures
X = gross exports of goods and services
M = gross imports of goods and services

Note: (X - M) is often written as X_N, which stands for "net exports"

Definitions:

The names of the measures consist of one of the words "Gross" or "Net", followed by one of the words "National" or "Domestic", followed by one of the words "Product", "Income", or "Expenditure". All of these terms can be explained separately.   

  

"Gross" means total product, regardless of the use to which it is subsequently put.

"Net" means "Gross" minus the amount that must be used to offset depreciation – ie., wear-and-tear or obsolescence of the nation's fixed capital assets. "Net" gives an indication of how much product is actually available for consumption or new investment.

"Domestic" means the boundary is geographical: we are counting all goods and services produced within the country's borders, regardless of by whom.

"National" means the boundary is defined by citizenship (nationality). We count all goods and services produced by the nationals of the country (or businesses owned by them) regardless of where that production physically takes place.

The output of a French-owned cotton factory in Senegal counts as part of the Domestic figures for Senegal, but the National figures of France.

"Product", "Income", and "Expenditure" refer to the three counting methodologies explained earlier: the product, income, and expenditure approaches. However the terms are used loosely.

"Product" is the general term, often used when any of the three approaches was actually used. Sometimes the word "Product" is used and then some additional symbol or phrase to indicate the methodology; so, for instance, we get "Gross Domestic Product by income", "GDP (income)", "GDP(I)", and similar constructions.

"Income" specifically means that the income approach was used.

"Expenditure" specifically means that the expenditure approach was used.

          GNP is not a: satisfactory measure of economic welfare because the estimates, of national income do not include certain services and production activities which affect welfare. We discuss below some of the factors which affect human welfare but are not included in the GNP estimates.

         

          Leisure. One of the important things that affects the welfare of a society .is leisure. But it is not included in GNP. For example, longer working, hours may make people unhappy because their leisure is reduced. On the contrary, shorter working hours per week may in-crease leisure and make people happy. More or less leisure enjoyed by the community as such may affect the total output of the economy. But the value of leisure is excluded from the national income estimates.

          Quality of Life. GNP estimates do not include the quality of life which reflects the community's welfare. Life in overcrowded cities is full of tensions. Roads are overcrowded. There is loss in time. Accidents occur daily which cripple or kill people. Environment becomes polluted. There are the problems of water, power, housing. transportation, etc. Crimes spread. Life becomes complex and the quality of life deteriorates. Consequently, social welfare is reduced; But all these stresses and strains of city life are not included in the national income estimates. Strangely, the efforts made by governments to remedy the ills of the city Life are included in the GNP because they involve public expenditure.

          On the other hand, in places where there is no congestion, people enjoy fresh air and the beauty of nature, the quality of life tends to increase. But this is not reflecte9 in GNP.

Non-market Transactions. Some of the non-market transactions increase, welfare but they are not included in national income estimates. The services of housewives within the home and community activities such as religious functions, affect the welfare of the  people but they are excluded from the estimates of GNP because no market transaction is involved in providing these services.

          Externalities. Similarly, there are externalities which tend to in crease or decrease welfare but they are not included in GNP estimates. "An externality is a cost or benefit conferred upon second or third parties. as a result of acts of individual production and consumption." But the cost or benefit of an externality cannot be measured in money terms because it is not included in market activities. "An example of an external benefit is the pleasure one man derives from his neighbour’s fine garden: An example of an external cost is environmental pollution caused by industrial plants." The former tends to increase welfare and the latter tends to reduce it. Since externalities are "untraded interdependencies", they are excluded from national. Income estimates.

          Nature of Production. GNP estimates do not reflect the capacity of different goods to provide different levels of satisfaction to the community. The same amount of money spent on a nuclear bomb or on building a dam across a river adds equally to the national income. But they provide different levels, of satisfaction to the community. A bomb does' not increase welfare while a dam increases welfare.

          Standard of Living. National income estimates also do not reflect standard of living of the community which determines its welfare. If more national expenditure is incurred on the production of arms and ammunitions and on capital goods and less on producing consumption goods, this difference is not reflected in GNP estimates. But the reduction in the production of consumption goods tends to decrease the welfare of the people, while the increase in the expenditure on armaments and capital good does not increase welfare.

          Keeping the above limitations in view, GNP cannot be used as a measure of welfare. However, a few economists have tried to broaden the definition of GNP so as to make it a measure of economic welfare. A pioneering attempt toward this direction has been made by Professors Nordhaus and Tobin² in 1972. They have constructed a 'Measure of 'Economic Welfare' which they call MEW. Professor Samuelson calls it 'Net Economic Welfare', or NEW.

          According to Nordhaus arid Tobin, in MEW they have tried 'w measure all consumption that leads to human welfare. To estimate the value of MEW, they deduct from consumption certain items which do not contribute to welfare and add other items that contribute to welfare but are excluded from GNP estimates.

          The deductions which they make are of three types: (1) Those public and private expenditures that do not yield utility directly. They call them "regrettable necessities", such as government expenditures on national defence, police force, road maintenance, and sanitation services, and expenses by consumers on commuting (i.e., traveling regularly by train, scooter, car or bus between one's residence and place of work). (2) AIl consumer expenditures on durable household goods such as washing machines, cars, TV sets, etc. which yield utility over their lifetime. (3) Estimated costs arising from "negative  externalities" which are disamenities arising from urbanisation" congestion and pollution. All these reduce human welfare.  

Having made these deductions, Nordhaus and Tobin add three items to consumption: They are:

(1) the value of non-market activities;

(2) the estimates of the value of the services of durable consumer goods actually consumed by the owners- both households and government; and

(3) the estimates of the value of leisure.

          In estimating MEW, Nordhaus and Tobin devote more attention to the valuation leisure. For this they adopt two approaches: the opportunity cost approach and the intrinsic-value approach. The first approach is based on the principle that when a person chooses to enjoy more leisure, it is always at the cost of foregoing more income. An hour's leisure means an hour's wages foregone, They estimated that the value of leisure measured by the opportunity cost approach has been steadily rising over the years because of the steady rise in the real wage rate per hour over the years. The intrinsic-value approach measures the value of leisure in terms of the actual enjoyment (utility) provided by, say, an hour's leisure.  By using such valuation devices, Nordhaus and Tobin estimated that the figure of MEW in the United States for 1965 was dollars 1200 billion which was twice the' GNP, for the same year. Their estimate of the growth of per capita MEW for the period 1929.65 averaged 1.1 per cent a year, as against 1.7 per cent a year for pet I pita GNP for the same period. The estimates reveal that there was mark able increase in economic welfare. At the same time, the regrettable necessities had also been growing rapidly.  

From the above discussion, it should not be .inferred that MEW is :ant to replace GNP It is at best an attempt to supplement GNP order to include non-market activities in the latter for relating it to economic welfare.

Question for self assessment:

1) What do you mean by economic welfare?

2) Differentiate between economic welfare and non economic welfare?

3) Give some examples of economic welfare and non economic welfare?

4) Discuss the effect of changes in the size composition and distribution of national income and economic welfare?

Chapter 2 India's Economics PLaning

a) Defence Budgeting Objectives & Functions.