Nations have been primarily trying to adopt various means which will strengthen their own domestic economies. To this effect, they are forming regional and global economic groupings such as the SAARC, European Union, ASEAN, G- 20 etc. In addition, there is also an increasing eagerness on the parts of various nations to try and understand, the developmental processes pursued by their neighboring nations as it allows them to better comprehend their own strengths and weaknesses vis-à-vis their neighbors. In the unfolding process of globalization, this is particularly considered essential by developing countries as they face competition not only form developed nations but also amongst themselves in the relatively limited economic space enjoyed by the developing world.

Here we will look at two developmental indicators-growth of employment and GDP. Fifty years of planned development have been aimed at expansion of the economy through increase in national product and employment.

During the period 1960-2000, Gross Domestic Product (GDP) of India grew positively and was higher than the employment growth. However, there was always fluctuation in the growth of GDP. During this period, employment grew at a stable rate of about 2 per cent

The two terms sound similar but there is a clear distinction between them.

Human development is based on the idea that education and health are integral to human wellbeing because only when people have the ability to read and write and the ability to lead a long and healthy life, they will be able to make other choices which they value. Human capital treats human beings as a means to an gad end being the increase in productivity. In this view, any investment in education and health is unproductive if it does not enhance output of goods and services. In the human development perspective human beings are ends themselves. Human welfare should be increased through investments in education and health even if such investments do not result in higher labour productivity. Therefore, basic education and basic health are important in themselves, irrespective of their contribution to labour productivity. In such a view, every individual has a right to get basic

Rules and laws which were aimed at regulating the economic activities became major hindrances in growth and development. Liberalization was introduced to put an end to these restrictions and open up various sectors of the economy. Though a few liberalization measures were introduced in 1980s in areas of industrial licensing, export import policy, technology up gradation, fiscal policy and foreign investment, reform policies initiated in 1991 were more comprehensive. Let us study some important areas such as the industrial sector, financial sector, tax reforms, foreign exchange markets and trade and investment sectors which received greater attention in and after 1991

An economy is best understood when we study its components or sectors. Sectoral classification can be done on the basis of several criteria. Here three types of classifications are discussed: primary / secondary / tertiary, organised / unorganised; and public / private. It is important to emphasize the changing roles of sectors. This can be highlighted further by drawing attention of the students to the rapid growth of service sector. While elaborating the ideas provided in the chapter, the students may need to be familiarized with a few fundamental concepts such as Gross Domestic Product, Employment et

Another important issue to be highlighted is about the problems caused by the changes in the roles of sectors.

A (commercial bank) is a type of financial intermediary.. It is a financial intermediary because it mediates between the savers and borrowers). It does so by accepting deposits from the public and lending money to businesses and consumers. Its primary liabilities are deposits and primary assets are loans and bonds.

Definitions

• (That part of government policy which is concerned with raising revenue through taxation and with deciding on the amounts and purposes of government spending).

Definitions:

• The strategy of influencing movements of the money supply and interest rates to affect output and inflation.
• The actions of a central bank that determine the size and rate of growth of the money supply, which in turn affects interest rates.

Inflation means a persistent rise in the price of goods and service? (Inflation reduces the purchasing power of money). It hurts the poor more as a greater proportion of their incomes are needed to pay for their consumption. Inflation reduces savings; pushes up interest rates; dampens investment; leads to depreciation of currencythus making imports costlier.

Depending upon the rate of growth of prices, inflation can be of the following types
(Creeping is a rate of general price increase of 1 to 5 percent a year?
Creeping inflation of 3 to 5 percent erodes the purchasing power of money when continued over many years, but it is "Manageable.") Furthermore, (a-low creeping inflation could be good for the economy as producers and traders make reasonable profits encouraging them to invest.)

(Trotting inflation is usually defined as a 5 to 10 percent annual rate of increase in the general level of that, if not controlled, might accelerate into a galloping inflation of 10-20 percent a year). If it aggravates, galloping inflation can worsen to (“runaway” inflation which may change into a hyperinflation). (Hyperinflation is inflation that is “out of control” a condition in which prices increase rapidly as a currency loses its value). No definition of hyperinflation's universally accepted. One simple definition requires a monthly inflation rate of 20 or 30% or more- 'an inflationary cycle without any tendency toward equilibrium'. The worst is a monetary collapse, if prices are not reined in, in time.

Other related concepts are

• (deflation when there is a general fall in the level of prices
• disinflation which is the reduction of the rate of inflation
• stagflation which is a combination of inflation and rising unemployment due to recession and)

Measures of inflation

GDP deflator

GDP stands for gross domestic product, the total value of all final goods and services produced within that economy during a specified period. (GDP deflator is a measure of the change in prices of all new, domestically produced, final' goods and services in an economy). (The GDP deflator is not based on a fixed market basket of goods and services but applies to all goods and service domestically produced.’

Cost of living index

(The cost of living is the of maintaining a certain standard of living. It is defined with reference to a basket of goods and service). When their cost goes the base year. An index value of 105 indicates that the cost of living is five percent higher than in the base year.

The government intends to convert the (Planning Commission) into a think-tank to generate original ideas in the very broad domain of economic policy for the government to then act on. (It will also be the government agency responsible for acting as an interface with other independent think-tanks and NGOs). The PM would like the commission to engage more directly with the "polity", presumably with various ministries in the Central and state governments, and be able to persuade them to implement certain ideas or "plans" generated by the government's own think tank. That isn't radically different from its existing role — the Planning Commission has few direct powers of execution in any case and must rely on the power of persuasion to sell its ideas to the Centre and states.

(Planned economy is one in which the state owns (partly or wholly) and directs the economy. )While such a role is assumed by the State in almost every economy, in planned economies, it is pronounced: (for example in communist and socialist countries- former USSR and China till the 1970's.) In such a case a planned economy is referred to as command economy or centrally planned economy or command and control economy. (In command economies, state does the following

Originated By - Mahboob-ul-Haq of Pakistan (Mahbub-ul-Haq) Amartya Sen of India.

Ist Human Development - 1990 (Published in)

Definition : Human Development is the process of enlarging peoples choices and capabilities to unable him to enjoy longvity, literacy and descent standard of living. In otherwords’ it is a process by which a society or a nation can use its national income to translate it for a better life for its people.

There may be two notions—

(a) With Higher Capita income (Higher)
(b) With low capital income.

and yet people with low capita income may have higher value of its Human Development than people with Higher capita income, which would mean that it has been able to use its resources to provide a better life to its people. In India e.g. : Kerala tops in Human Development and yet it does not have higher income / capita.

There may be three types of Human Development.

Human Development Indices : HDI

With HDI come rises of Longevity, Knowledge and Desent Standad of living.

• Longevity : Measured by Life expectancy at the time of Birth.
• Knowledge : Measured by

(a) Adult literacy (2/3 weight)

(i) 0.800 to above — Higher Human Development
(ii) 0.500 to 0.799 — Medium Human Development
(iii) Below 0.500 — Low Human Development.

(Latest Report of Human Development is presented in 2006. under “Beyond Scarcity, Power Poverty and Global Water crises”) (Value of Human Development of India — 0.611 / 126th position out of 177 countries.. GDI - 0.592

• (Norway is Ist
• Niger is at last position.)
• Norway’s HDI value in 2004 was — 0.965, GDI - 0.909.

HDR Indices:

Human Development Report index is a comprehensive measure that could capture the various dimensions of Human development led to definition and formulation of Human Development Index (HDI) by the united nations Development Programme (UNDP) in its Human Development Report published in 1990).

(b) Gross - Primary, Secondary and Territory enrollment Ratio.
(iii) Descent Standard of living measured by - GDP/ capita adjusted for PPPus & Purchasing Power parity).

IAS Professional Course (Phase I)

(i) Duration: The IAS Professional Course (Phase I) or Phase I, as it is commonly known, commences immediately upon the conclusion of the FC in mid-December. The course is of 26 weeks (6 months) duration and normally ends in mid-June of the following year. It comprises the following:

1. Classroom instruction – 15 weeks
2. End-of-course examination – 1 week
3. Winter Study Tour (WST) – 8 weeks
4. BPST Attachment – 1 week
5. Block leave after WST – 1 week

The objectives of the Course9 have been stated as follows:

a. To acquire a pan-Indian perspective of emerging socio-economic and politico-legal trends; an understanding of the emerging role of the IAS and its shared administrative responsibilities with other services;
b. To acquire knowledge and skills needed to discharge administrative responsibilities in the first decade of career in the following areas:

1. Law and legal instruments
2. Administrative rules, procedures and programme guidelines
3. Modern management tools
4. Economic analysis

c. To demonstrate proficiency in the regional language of the allotted state to better appreciate its administrative and cultural ethos;
d. To acquire an understanding on the cultural and socio-economic background of the allotted state;
e. To demonstrate effective written/ oral communication skills, both in inter-personal and organizational context;
f. To exhibit right values and attitudes;
g. To maintain physical fitness; and
h. To adhere to the spirit of “Sheelam Param Bhushanam”.

(ii) Curricular Inputs: The Phase I entails a total of around 300-plus hours of teaching spread across the various faculties that are taught and also sessions on ICT and Language. The course is thematically divided into weekly modules that form the focus of most teaching in that particular week. The list of modules covered (as in Phase I of 2013 batch) is as follows:

1. Week 1 – IAS in perspective
2. Week 2 – Land Administration
3. Week 3 – Elections, Decentralization and Rural Development
4. Week 4 – Agriculture, Irrigation & PDS, Health & Education
5. Week 5 – Infrastructure & PPPs
6. Week 6 – Urban Development
7. Week 7 – Engineering Skills, Project Management
8. Week 8 – Environment & Climate Change, Disaster Management
9. Week 9 – Public Finance, Audit & Procurement
10. Week 10 – Disadvantaged groups & Minorities
11. Week 11 – Office Management
12. Week 12 – Leadership & HRM
13. Week 13 – District Administration
14. Week 14 – Law and Order
15. Examinations
16. Week 15 – Innovations Conference

In addition to the weekly modules, teaching inputs on Law, Political Concepts and Constitution, Economics, and Organizational Behaviour are imparted through the length of the course. Similarly, 25 sessions each on language, i.e. state language of the allotted cadre, and ICT are spread through the entire duration of the course.

(iii) Co-curricular Inputs: In comparison to the FC, the Phase I is slightly modest in its focus on co-curricular inputs. However, to supplement the curricular instruction, the following activities are normally organized in Phase I:

1. Weekend Trek
2. Zonal Days – 5
3. Extra-Curricular Module
4. Activities of Clubs and Societies

As in the FC, Trainees undergo mandatory Physical Training for one hour on all working days in the Course. They are also expected to acquire basic proficiency in horse riding.

(iv) Winter Study Tour: The IAS Officer Trainees have been historically taken for a Winter Study Tour (popularly known as Bharat Darshan) in Phase I. This is an eight-week tour where Trainees broken into 10 groups (of 15-18 each) traverse the country covering various attachments along a pre-designated route. In the last week, the groups converge in Delhi for common attachments. The various attachments in a typical group itinerary (over an 8-week period) are as follows:

1. Army attachment – 10-12 days
2. IAF attachment – 3 days
3. Navy attachment – 3 days
4. Public Sector attachment – 3-5 days
5. Private Sector attachment – 3 days
6. Attachment in naxal-affected/ insurgency district – 3-5 days
7. Attachment with district administration – 3 days
8. Attachment with NGO – 3 days
9. Attachment with Forest/ Island administration – 4-5 days
10. NSG attachment – 2 days
11. Miscellaneous attachments & local sightseeing

The Academy aims to expose the Trainees to both the diversity of India as well as to some of the governance challenges and also provide exposure to administrative best practices. The attachments with the three Armed Forces (and more recently also with NSG) have traditionally formed an important component of the WST.

(v) Pedagogical Issues: The Trainees are divided into quarter groups for classroom instruction, with some sessions being delivered in half-groups as well as plenary especially in the case of guest speakers. Case Studies are sometimes even attempted in 1/8 group size to allow for better class participation. The predominant teaching method comprises lectures which are supported by seminars, case studies, films, management games and role play exercises. The Academy is planning to introduce the “flipped classroom” method (wherein a recorded lecture is seen online and is followed by intensive seminar work on given cases) in its Economics teaching in the current Phase I course.

(vi) Evaluation: As in the FC, evaluation consists broadly of two main heads, i.e. examinations and the Director’s Assessment. The assessment under examinations comprises of end-of-course examinations, mid-term examinations and concurrent evaluation on the various faculties taught. The Director’s Assessment includes assessment on Language and ICT as well as other co-curricular activities, including writing a 5000-word Term Paper on an issue pertaining to the allotted State cadre.

Source- KIRAN AGGARWAL COMMITTEE (2014) (COMMITTEE TO REVIEW THE CONTENT AND DURATION OF INDUCTION TRAINING OF IAS OFFICERS) - IV