"GROSS DOMESTIC PRODUCT(GDP)" growth has become strange connotation in the globe, particularly in India and its different states with the advent of new economic liberalisation policy, implemented in India in 1991 under the union finance minister ship of the present prime minister of India Manmohan Singh during the regime of Narsimha Rao government at the centre. Such measurement of this growth rate had for the first time came in United States of America and Europe under a policy-"TRICKLE DOWN ECONOMY", formulated by Nobel Laureate in Economics Kuznitis of America during the period 1974-75. Under this "Trickle down policy" of economy, as per theory of Kuznitis, the real development of any country will grow in the head of GDP with vast richness of corporates, industrialists, capitalists etc. and when these rich sections will touch highest point of richness, the welfare from such rich economy will automatically percolate to downward trends at the bottom and all sections of society will be benefitted.. Such theory had become major economic policy formulation in America and Europe. In the entire US and Europe, wealth concentrated in the hands of rich,corporates, capitalists, industrialists etc following boosting of Trickle down policy in their respective countries. They became rich and poor became more poor. Economy from rich is yet to percolate from the top , resulting into widespread down trend economy in entire America and Europe.
Significantly this economic policy did not click and instead of success trickle down economy theory has failed. Noted economists of America Joseph Stieglitz and Pal Krugman, both Nobel prize winners in Economics had vehemently opposed the trickle down economy and had cautioned the US men that such policy will result into disastrous policy not only for America but for Europe also. "This economic theory had no practical approach and was just imaginary that wealth will percolates to downward for poors' welfare when the rich will have enough wealth and would reach at centurion point!
Significantly , the new economic liberalisation policy of India has also copied the trickle down theory of economics-hence richer getting richer and poor getting more and more poorer in the last 20 years. Present measurement of GDP is the same indicator which indicates that India.s economy like GDP is rising and rising and the country is getting stronger and stronger. Because of heavy boost to corporates, multinationals, industrialists, capitalists by the Indian government the production were increasing but it fails to percolate employment generation and core agriculture sectors, on which even today over 67 percent depend for their livelihood. The India government in the rat race of encouraging production of goods and materials had withdrawn subsidies on agriculture sectors.And farmers are crying for help and assurances-many social sectors are suffering while corporates, capitalists, industrialists, multinationals are being given concessions after concessions.
BIHAR: If entire gamut of growth rate are taken into consideration, India is failing to mitigate the sufferings of common and poor masses and on the another hand concentrating on helping big business houses so that GDP of the country continue to increase to obviously show the people that India is developing-, this is completely an eye wash, said Uamadhar Singh, ex-MLA and former naxalite leader and associates of late Charu Mazumdar and Kanu sanyal and also pioneering and researching on economic policy in the globe, particularly in india and Bihar. Taking pot shot on the so called increase in the GDP of Bihar, Singh said that in actuality economy of Bihar for benefitting poor and farmers are sharply declining. In the last several years no investment had come in Bihar, unemployment is mounting, agriculture main items in Bihar is suffering-only growth in non-viable sectors including oil mills, hotel business, richness of capitalists, rise in building construction sectors have been taken into consideration -than it was obvious that GDP of Bihar will definitely rise to over 14 percent as per figure released by union government, singh added..
About the increasing economy of Bihar, the figure of 14.15 percent (GSDP) has been released by the union ministry of programme implementation and statistics. The report has said that annual Gross state domestic product (GSDP) of Bihar is more than developed states including Tamil Nadi , Maharashtra, Punjab , Haryana and Andhra Pradesh, which have recorded 11.75, 10.74,7.21 , 9.69, and 9.22 percent GSDP growth respectively. Significantly Bihar's GSDP rate is better than mineral rich states like Orrisa,(5.87 pc), chhatishgarh (11.57pc) and Jharkhand (6.01pc). Big states like Rajasthan (9.69pc) and Uttar Pradesh (8.08 pc) are also lagging Bihar in the growth parameters.
Economic experts are not entghuisiatc over the increased growth rate of Bihar. Patna university professor of Economics N K Chaudhary said that agriculture , which is backbone of Bihar has shown no growth in the last two years. Growth is only in non-viable sectors and tertiary sectors. such growth generally does not sustain unless the growth in made in primary and secondary sectors." I do not feel optimistic over GSDP in Bihar", Chaufhary lamented. and added that present growth rate was not pro-poor as evident that poverty is rising.
Senior economist and the Director of Asian research development research institute (ADRI) P P Ghosh is also apprehensive over present growth rate in Bihar. He said that it was only because of low base of economy was one of the factors for such a high growth rate. If the increase in poverty and almost no attention on primary agriculture sector in Bihar were taken into consideration, such high growth bound to be rebound , Ghosh added.
However, national general secretary of JD(U) Shivanand Tiwari patted the Nitish government for stressing on development of the state, resulting into rise in GSDP. With regards to rise in poverty Tiwari put blame of union government and said that Bihar needed maximum m support of union government to overcome the problem.
In this way this trickle down economy, adopted from US and Europe is giving ominous signals for Indian economy when look into down-ward trends of economy in the US and Europe. For eliminating poverty, agriculture and social sectors must be given priority-only than fruits of development and employment percolate to common masses in India. It will be foolish to undermine the level of life of masses in India and encourage rich and capitalists to get richer!
Exactly I remember one of the statements of eminent writer Arundhati Roy in which she had ironically commented about this trickle down economy and had said that like rich in abundance percolates benefits to poor from new height of richness like wise naxalites will reach in their revolution from trickle down to trickle up manner for achieving their goals!
Journalist, Analyst, Columnist based at Patna my blog www.kksingh1.blogspot.com
Significantly this economic policy did not click and instead of success trickle down economy theory has failed. Noted economists of America Joseph Stieglitz and Pal Krugman, both Nobel prize winners in Economics had vehemently opposed the trickle down economy and had cautioned the US men that such policy will result into disastrous policy not only for America but for Europe also. "This economic theory had no practical approach and was just imaginary that wealth will percolates to downward for poors' welfare when the rich will have enough wealth and would reach at centurion point!
Significantly , the new economic liberalisation policy of India has also copied the trickle down theory of economics-hence richer getting richer and poor getting more and more poorer in the last 20 years. Present measurement of GDP is the same indicator which indicates that India.s economy like GDP is rising and rising and the country is getting stronger and stronger. Because of heavy boost to corporates, multinationals, industrialists, capitalists by the Indian government the production were increasing but it fails to percolate employment generation and core agriculture sectors, on which even today over 67 percent depend for their livelihood. The India government in the rat race of encouraging production of goods and materials had withdrawn subsidies on agriculture sectors.And farmers are crying for help and assurances-many social sectors are suffering while corporates, capitalists, industrialists, multinationals are being given concessions after concessions.
BIHAR: If entire gamut of growth rate are taken into consideration, India is failing to mitigate the sufferings of common and poor masses and on the another hand concentrating on helping big business houses so that GDP of the country continue to increase to obviously show the people that India is developing-, this is completely an eye wash, said Uamadhar Singh, ex-MLA and former naxalite leader and associates of late Charu Mazumdar and Kanu sanyal and also pioneering and researching on economic policy in the globe, particularly in india and Bihar. Taking pot shot on the so called increase in the GDP of Bihar, Singh said that in actuality economy of Bihar for benefitting poor and farmers are sharply declining. In the last several years no investment had come in Bihar, unemployment is mounting, agriculture main items in Bihar is suffering-only growth in non-viable sectors including oil mills, hotel business, richness of capitalists, rise in building construction sectors have been taken into consideration -than it was obvious that GDP of Bihar will definitely rise to over 14 percent as per figure released by union government, singh added..
About the increasing economy of Bihar, the figure of 14.15 percent (GSDP) has been released by the union ministry of programme implementation and statistics. The report has said that annual Gross state domestic product (GSDP) of Bihar is more than developed states including Tamil Nadi , Maharashtra, Punjab , Haryana and Andhra Pradesh, which have recorded 11.75, 10.74,7.21 , 9.69, and 9.22 percent GSDP growth respectively. Significantly Bihar's GSDP rate is better than mineral rich states like Orrisa,(5.87 pc), chhatishgarh (11.57pc) and Jharkhand (6.01pc). Big states like Rajasthan (9.69pc) and Uttar Pradesh (8.08 pc) are also lagging Bihar in the growth parameters.
Economic experts are not entghuisiatc over the increased growth rate of Bihar. Patna university professor of Economics N K Chaudhary said that agriculture , which is backbone of Bihar has shown no growth in the last two years. Growth is only in non-viable sectors and tertiary sectors. such growth generally does not sustain unless the growth in made in primary and secondary sectors." I do not feel optimistic over GSDP in Bihar", Chaufhary lamented. and added that present growth rate was not pro-poor as evident that poverty is rising.
Senior economist and the Director of Asian research development research institute (ADRI) P P Ghosh is also apprehensive over present growth rate in Bihar. He said that it was only because of low base of economy was one of the factors for such a high growth rate. If the increase in poverty and almost no attention on primary agriculture sector in Bihar were taken into consideration, such high growth bound to be rebound , Ghosh added.
However, national general secretary of JD(U) Shivanand Tiwari patted the Nitish government for stressing on development of the state, resulting into rise in GSDP. With regards to rise in poverty Tiwari put blame of union government and said that Bihar needed maximum m support of union government to overcome the problem.
In this way this trickle down economy, adopted from US and Europe is giving ominous signals for Indian economy when look into down-ward trends of economy in the US and Europe. For eliminating poverty, agriculture and social sectors must be given priority-only than fruits of development and employment percolate to common masses in India. It will be foolish to undermine the level of life of masses in India and encourage rich and capitalists to get richer!
Exactly I remember one of the statements of eminent writer Arundhati Roy in which she had ironically commented about this trickle down economy and had said that like rich in abundance percolates benefits to poor from new height of richness like wise naxalites will reach in their revolution from trickle down to trickle up manner for achieving their goals!
Journalist, Analyst, Columnist based at Patna my blog www.kksingh1.blogspot.com
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