OBJECTIVES OF ECONOMIC DEVELOPMENT.pptx

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1. OBJECTIVES OF ECONOMIC DEVELOPMENT

2. MEANING OF OBJECTIVE Objective is something which we plan to do or achieve. It is an aim or purpose. Every country or economy in the world would strive hard to achieve the path of development. OBJECTIVE IS NECESSARY FOR AN ECONOMY: To increase and raise standard of living To expand range of economic and social choice To meet basic needs

3. OBJECTIVES OF ECONOMIC DEVELOPMENT High rate of growth Economic self reliance Social justice Modernization Economic stability Sustainable development Inclusive growth

4. 1.HIGH RATE OF GROWTH Economic growth is defined as steady increase in output of goods and services of a country. Economic growth is vital for a country. Every country strive hard to achieve high economic growth. Ex: China, India. Economic growth rate is percentage change in value of goods and services in a nation during a specific period of time as compared to an earlier period. It can be measured quarterly or yearly. A year divided into four quarters. Each quarter consists three months. Economic growth can be observed within a quarter.

5. RATE OF GROWTH USED TO MEASURE EXPANSION RECESSION If increase rate is positive. If country has grown its income for two consecutive quarters, it is considered to be expanding If there is decrease which is negative. If income with in a country declines for two consecutive quarters, it is considered to be recession

6. A healthy rate of growth is 2% to 3%. Economic growth provides financial stability. It increases productive capacity. There are huge benefits of economic growth. Developing economies or countries were in a view that high rate of growth can be achieved by giving importance to primary sector. For instance, after achieving independence, India’s first five year plan has focussed on primary sector for growth of real national income. Initially, rate of economic growth is not encouraging in economy. First five year plan [1951-56] Second five year plan [1956-61] Third five year plan [1961-66] THREE FIVE YEAR PLANNING Growth was not so encouraging

7. Till 1980, Average annual rate of GDP is 3.73% Average annual rate of population 2.5% Per capita income is 1% 6 th plan -considerable change in economy 7 th plan –growth rate is 5.4% 8 th plan -growth rate is 6.8% 9 th plan –growth rate is 7%[targeted growth] growth rate is 5.35%[real growth] Economy achieved high rate of growth of 9%. China achieved 10% rate in 21 st century. 12 th plan –Targeted growth[7.9%] Actual growth[8.2%] GDP grown at 7.5% during 2014-15 and 2018-19

8. YEAR GDP GROWTH% ANNUAL CHANGE 2019 5.02% -1.10% 2018 6.12% -0.92% 2017 7.04% -1.21% 2016 8.25% +0.26% 2015 8% +0.59% + Shows growth in economy - Shows recession in economy All developing economies strive hard to achieve high growth rate with a view to bring improvement in standard of living of people. Higher economic growth is higher economic development .

9. 2.ECONOMIC SELF RELIANCE Self-reliance is to rely on one’s own powers and resources rather than other. In simple terms, it is ability to do our things ourselves. Economic self reliance is a situation where a country has attained a level of autonomy economically that it can take certain important decisions. Self reliance means to stand on one's own legs. Self sufficiency is the fulfillment of an individual without outside aid. Self Reliance has become an important objective . ABILITY OF A COUNTRY SELF SUFFICINECY SELF RELIANT Implies country produces all goods and services it requires without depending on others It rules out imports Produce sufficient amount of goods and services Allows a country to import provided it has capacity to pay for it Restrict import Country generates sufficient surplus to buy what it needs

10. No country is self sufficient, but a country can try become self reliant by paying for everything that imports. A self reliant country doesn't depend on other counties for resources of needed to acquire them. It implies that dependence on foreign aid should be minimum as possible. Excessive dependence on foreign sector may lead to economic colonialism. Economic colonialism refers to powerful nation extending its influence on less developed economies to exploit one's nation resources. 3 rd plan –Objective of self reliance 4 th plan –Importance given on self reliance[production of food grains] 5 th plan –Earn sufficient foreign exchange[export promotion and import substitution] India’s dependence on foreign aid for Import food grains from USA Process of industrialisation Infrastructural facilities Meet our domestic demand Capital goods in form of machinery Roads, Railways, Power etc

11. India has made remarkable progress in achieving self –reliance. However, it has to depend on aid to raise rate of investment. China, Brazil, South Africa, South Korea, Vietnam and Latin American countries are aiming to achieve self-reliance . SELF RELIANT SCHEME IN INDIA: Atmanirbhar Bharat scheme was launched on 12th May 2020, by the Prime Minister of India - Narendra Modi to make India self Reliant India to minimize import of atleast small things. The Atmanirbhar Bharat Abhiyan is a chance for Indian start-ups to take charge of innovations for which we are usually dependent an global suppliers. It is the time to become vocal for local products & make them global.

12. ATMANIRBHAR BHARAT[THE ROAD AHEAD ]

13. 3.SOCIAL JUSTICE Justice is the concept of fairness. Social justice is fairness as it manifests in society. Social justice is equitable distribution of wealth and income of country among different sections of society. Social justice promote fairness and equity across many aspects of society. It is important for safety and security of individual and communities. It is to take care of poor and weaker sections of society. India has large no of poor people and few lead luxurious life .

14. 90% POOR PEOPLE HOLD 10% WEALTH 10% RICH PEOPLE HOLD 90% WEALTH

15. ASPECTS OF SOCIAL JUSTICE Adherence to democratic principles in political structure of country. (adherence-commitment) Establishment of social and economic equity and removal of regional disparities. (focus on imbalanced areas) Putting an end to process of centralization of economic power and simultaneously attaining decentralized power [Decentralization is a good sign of development, Centralization refers to assets in hand of only few people. Rich becomes richer and poor becomes poorer] Efforts to raise conditions of backward and depressed classes 9 th five year plan focused on social justice and equity

16. OBJECTIVES OF FIVE YEAR PLAN Uplift economic conditions of socio-economically weaker sections like SC and ST through no of targeted oriented programmes To reduce inequality in distribution of land and assets, land reforms have been adopted Specific programmes have been adopted 4.MODERNIZATION Modernization refers to model of transition from ‘pre-modern’ or ‘traditional' to modem society. Modernization is transforming from traditional methods to modem methods. Modernization is a revolutionary change leading to transformation of traditional society into technological and civilized society. It is opposite view to traditionalism. It is replacement of traditional to scientific methods.

17. Modernization of agriculture imagines implementation of land reforms. Land reforms refer to distribution of land from rich to poor. It can be either of radical nature or modest nature. It is implemented in most of developing countries like China, Vietnam and India.

18. 5.ECONOMIC STABILITY It refers to absence of excessive fluctuations in economy. It is ensured when non inflationary full employment growth occurs in a country. Objective of economic development has been non-inflationary self-reliant growth with social justice . WHY DOES STABILITY MATTER Higher living standards Higher economic growth Better resource allocation Decisions taken for long term After 2 nd five year plan, inflation arose for longer time. Planners tried to stabilize by controlling rising trend of price level.

19. 6.SUSTAINABLE DEVELOPMENT Sustainable development is the development that meets the needs of present without compromising ability of future generation to meet their own needs. In other words, better quality of life for everyone- now and for generations to come. It means that development should keep going. Sustainable development as "meeting needs of present generation without compromising the of needs of future generation” - BRUNTLAND REPORT Policy makers have ignored environmental issues. On the name of development, environment can't be damaged. These damaging effects on environment can be reduced by judicious choice of economic and environmental policies, environmental investments Sustainable development aims to conserve and enhance stock of environmental, human and physical capital without making future generations worse off.

20. 7.INCLUSIVE GROWTH Inclusive growth means economic growth that creates employment opportunities and helps in reducing poverty. It means having access essential services in health and education by poor. It includes providing equality of opportunity and skill development. It also encompasses growth process is environment friendly growth. It refers to pace and pattern of growth. It was referred by world Bank. It benefits marginalized sections of population. It stresses the inclusiveness of the hitherto excluded population in growth process, expected to bring benefits to economy. Inclusive growth is equality of opportunity. 20% of population – share 2% to 3% of national income BY ADOPTING INCLUSIVE GROWTH STRATEGY 20% of population – share 5% to 10% of national income

21. Indian government along with state government and local government should continue to focus on eradicating poverty and achieving sustainable development in order to order to improve lives of Indian's people. It will help in empowerment of vulnerable and marginalized populations, improve livelihoods and increase skill building for women.

22. THANK YOU