Will market reforms enrich rich states further, while poorer ones lag further?
Bloated spending levels, and a lot of money in unfunded government employee pension results in various obstacles in economy recovery in several states. This begs the million or trillion dollar question – WHY ARE SOME STATES PROSPERING WHILE OTHERS ARE STILL STRUGGLING OR POSSIBLY CONVERGENCE COULD BE SEEN.Will market reforms enrich rich states further?
We need to take notice about the different sectors related to any state, for instance, their agricultural sectors, their ability to produce surpluses and urbanization.
The agriculture factor depends on the productivity of the crops or the export market. Green revolution has eventually increased the productivity of the crops. As a result, short-stemmed, high yielding varieties of wheat, that required less of irrigation and fertilizers, was a better idea of productivity rather than the growth of paddy which drew heavily on fertilizer use and irrigation, considering Punjab and Haryana as the epicenter. Larger parts of BIMARU states i.e., Bihar, Madhya Pradesh, Rajasthan and Uttar Pradesh as well as Orissa and Andhra Pradesh have the agro-climatic potential to generate high agricultural outputs as per the high rainfall and the perennial rivers.
The decreased economy in these states has been taken a result of the agro climatic factors. The parts of the country that experience dry climatic conditions or more of a rocky surfaces or may be dense parts are not considered suitable for the agricultural growth and as a result make them predominantly poor. But this is not the only case, urbanization has been increased eventually from time to time.
Urbanization basically started making its grip in the 1980s and the 1990s. There are various percentiles of urbanization in different parts of the country which may be dye to the lesser capability in the agricultural fields that was considered as a result of poor or irrelevant climatic conditions.The ratios totally depend on the geographical factors as per a particular area.
If we compare our agriculture system with that of US, we would find that, only 2 percent of the population is under labour and which feeds the whole of the population of US efficiently. The population apart from the labour ones are mostly inhabited within hundred kilometer of coast.
But apart from the various factors, though India and China are the countries that are pretty away from the sea area. Thus due to the lesser agro productivity among the people, it becomes necessary for more and more number of people to get engaged under this.
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15 Responses to Will market reforms enrich rich states further, while poorer ones lag further?
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Development of nation depends on the growth of its economy and the rate at which it is growing..No doubt that the rich are becoming richer and poor the more poorer. Today’s market reforms aim at providing more enhanced options to big cities.Thus lack of proper planning is the major reason behind this. A proper planning can ensure a steady cash flow between the rich and the poor. Also there is a huge gap in the literacy rate between the states which may be one major factor for the poor lagging behind. As far as agriculture is concerned india is known for its agriculture and majority of its economy is achieved from agriculture but since there is an imbalance between the states the growth in developed places is being encouraged more and thus poor being lagged behind. only proper human resource planning can improve this condition.
As per the concentration of capitalized monetary power rests in the hands of the same few; the things.. the scenario.. the condition.. the status as well as the stats will remain the same as ever!
Awareness and improvisation in the distribution of capital is the need of the hour. People need to be made aware where the money they pay as taxes goes.. to trash or back to their pockets as services by government, ‘coz the scene of today’s era focuses more on the former portion!
Proceeding with a neutral stand, urbanisation is very important as it shows the development of a country. But, the contribution of agriculture to our economy is paramount. Most of the export services are dependant on the agriculture & it also provides with domestic sufficiency.
i dont think the market reform enrich only rich state further the poor one lag..
becoz it does not entirely depend only on the market reform that state would be prosperous and rich and it depend on the goverment of the state , depend upon the resource and the people .
example could be orissa which was earlier the poor and backward state but now due to the goverment of orissa and market reform it is a rich and prosperous state as compared to past.
Economy is an important aspect of market reform. The country which has strong economic background, can grow promptly. India is growing at a rate more then any other country, but in our country the people who are involve in agriculture field are living in miserable condition. They have no money in their hands. money is confined only in hands of 30% population of India. Approx three forth of population of India is living in rural areas but the contribute only to one third part of national income. rural areas mainly depend on agriculture at which whole economy depends but we hardly found any chance to see growth in them. For over all market growth of country we should have to remove this unequal distribution in India.
Economy is a important aspect of market reform. The country which has strong economic background, can grow promptly. India is growing at a rate more then any other country, but in our country the people who are involve in agriculture field are living in miserable condition. They have no money in their hands. money is confined only in hands of 30% population of India. Approx three forth of population of India is living in rural areas but the contribute only to one third part of national income. rural areas mainly depend on agriculture at which whole economy depends but we hardly found any chance to see growth in them. For over all market growth of country we should have to remove this unequal distribution in India.
Reforming Market is Good news for poorer states but it should be in Right Direction.
I don’t believe that the country is prospering yet a large group of people are untouched from it..Yes I am talking about the poor and the weaker section..they are still in the same state as they were years back..
we need to upgrade them first then only we can say that we are truly flourishing..
Ya ,truly agree with your thoughts as Market Reforms are a basis for an Economy and if implemented well could lead to the sustainable growth of an Economy which we today are lacking behind………….so it is necessary we deal with different aspects focussed here like agriculture ,Economy etc so that every field can have an equal taste of not only GROWTH but Sustainable Economic Growth!!!
Market reforms, if implemented efficiently and honestly, will never let down the poorer states and will not allow the capital ‘n wealth getting concentrated in the few hands of already prosperous states.
Equalized opportunities will be given to each one and the competency will be based on the level of production and consumption of the states.
The reforms need to be legalized and restricted in action and independent characteristics otherwise market grown anarchy would lead the whole economy shatter to ground.
Market reform is rewarding equally, for rich as well as poor states. But one thing is to be noted here that market reform is needed at state level too, and not only market reform- law and order situation is also very vital to get full advantage of market reform.
It is correct upto certain extent because policies are made keeping in mind the middle class n upper class people not those who are below poverty line.
Urbanization has a great impact on a developing country… Its not that govt. isn’t concerned about poor states/ rural areas. Many developments have been done in rural areas also. But the thing is that govt. is more concerned about urban areas than rural areas. If 10% development is done in a rural area in one year, around 70% development is done in urban area in the same year.. So the development in rural area is minute with respect to urban area.
Goverment should change its way of development to improve the rural sectors as not to oppose the rural sectors behind..
In my opinion it is true that the developed areas are becoming more developed and government is also looking to them and the rural sectors are not seen wid the eyes of development!!!!!!