...of the agriculture sector towards India’s GDP is questioning the status of this sector as the backbone of the economy. With time agriculture is turning into an economically unviable activity with almost no profitability pushing the sector in a state of crisis. The following report analyses how the agrarian crisis can largely be attributed to the economic reforms in India since 1991. Lack of Easy Credit to Agriculture and Dependence on Money Lenders In 1969, 14 major commercial banks were nationalized with one of the objectives of developing banking sector in rural areas and providing easy institutionalized credit to the farmer. Soon these banks became the major source of affordable credit in the rural market particularly for the small and marginal farmers. However in the era of neo liberalization, since 1991, the nationalized banks started reducing their commitment below the prescribed 18 per cent, while the cooperative banks turned sick and failed to provide credit. With the implementation of the recommendations of the Narasimham Committee on Banking Reform post 1991, some of which included the decontrol of interest rates, large scale closure of rural branches for rationalized branch networks, the national effort towards developmental and social banking for farmers came to an end. This squeezed credit lines to farmers and led to a drastic fall in the credit flow to agriculture. In Andhra Pradesh for example, the proportion of bank lending to agriculture fell from...
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...operation at an EU level and its impact on Ireland over the last few decades. This policy was a necessity to EU integration, as agriculture is one of the single biggest economic sectors. The Common Agricultural Policy is viewed as a partnership between Europe and its farming community. The policy has gone through many modifications and reforms since its creation and it continuing to change in the present day. The Common Agricultural Policy was established as a policy that would enhance the social structure of agriculture in Europe while preserving the environment and the safety and quality of the goods that famers were producing. CAP maintains commodity price levels and subsidises production within EU Member States. Many different types of mechanisms are used to achieve this, such as, import quotas and levies as well as internal intervention prices, which serve as a floor for market prices. In addition to this, there are also production quotas. These are in place to avoid the over production of foods that draw in financial support well in excess of their market price. The policy itself is set at the EU level in order to ensure fair conditions for each member state to follow. It is then up to each individual member state to follow these conditions. The main aims set out for the Common Agricultural Policy when it had been established were to stabilise the markets, secure the consistent availability of...
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...Schneider Second essay 4612 words (excluding references) Why does the EU find it difficult to reform its policies? Answer with reference to two policy areas of your choice. UNIVERSITY OF KENT 2007-2008 There is something strange about European Union policies: they are always reformed and they always need to be reformed further. This is due to the fact that these reforms concern mainly the form and not so much the content. The seven objectives of the regional policy have been replaced by three objectives in the 2000-2006 budgetary perspective, which have themselves been converted into three principles for the 2007-2013 period but it did not leqd to any revolutionary change. The CAP has been reformed in 1984, 1988, 1992, 1999, and 2003, but the principle of protecting agriculture from market forces remained intact. Scholars, especially economists, often criticise this inertia claiming that real reforms are necessary to avoid huge economic costs and to ensure a long-term development. Why is it so difficult to reform EU policies? What are the factors encouraging these reforms and those leading to their lack? We have chosen the Common Agricultural Policy (CAP) and the regional policy to tackle this question because they seem to be the policies which face the most difficulties...
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...1 AGRICULTURE IN BRAZIL: FROM THE 1980’s TO THE G-20 MAURO MASON DE CAMPOS ADORNO Thesis Submitted in Partial Fulfilment of the Requirements of the Degree of Master by Coursework in International Policy Studies School of Politics Faculty of Humanities and Social Sciences La Trobe University Bundoora, Victoria 3083 Australia 2 July 2005 Abstract The Brazilian economy transformed from a state of financial crisis in the 1980’s to become a leading agriculture exporter in the late 1990’s. Economic reforms implemented by the Real Plan were a response to a bankrupt decade of failed economic plans and high inflation rates. In this period agriculture played a key role in the control of the inflation and in the stabilization of the economy. The domestic environment of the Brazilian economy and the role of agriculture helped Brazil to develop a more active role and led it to seek for a leadership position in the international agricultural negotiations. On the eve on the WTO’s Cancun Round of negotiation a new coalition of developing countries formed the G-20. The Group was born from a Brazilian initiative and for the first time a group of developing countries stood up against the developed countries in the agriculture negotiations. 3 Acknowledgments I would like to dedicate this thesis to my mother Ana and my brother Matheus. Who believed in me even when I did not. I love you guys. I would like to thank my Father for the support, during the whole process,...
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...Franco Viciani Kostas G. Stamoulis Alberto Zezza Franco Viciani nd Alberto Zezza are consultants, and Kostas G. Stamoulis is a Senior Economist, Agriculture and Economic Development Analysis Division (ESA), FAO, Rome. | 1. Introduction 2. Poverty, Inequality and Food Insecurity 3. Policy Reforms Affecting Agriculture and Rural Development, and Changes in the Role of the State 4. Globalization and International Trade Liberalization 5. Increasing Agricultural Production: Sustainability and Technology Changes 1. INTRODUCTION The first step in the CUREMIS exercise was a survey conducted among all the regional and sub-regional policy officers and outposted staff of the Economic and Social Department of FAO. The survey was based on a questionnaire which was distributed to them and was structured around "major trends affecting food, agriculture and rural development" as identified in the process of preparing the FAO Strategic Framework, namely: * changes in the role and functions of the state and implication for food, agriculture and rural development * trade liberalization, globalization and increased reliance on regional blocks * persistence of poverty, mounting inequality, food insecurity and continuing risks of emergencies * population growth, urbanization and related changes in demand on agriculture; increasing pressure on natural resources and the environment * research and technology development and inequality of access. A consolidated synthesis...
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...imperial era with centralized regime that discouraged market economy and private ownership. The regime nationalized land, medium and large size enterprises, and rented urban houses. The credit policy discriminated against the private sector, bank credit was admisteratively allocated, and interest rates on loans were also admisteratively fixed. Foreign trade was highly restricted by prohibitive tariffs,...
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...about 17 % of the world’s human population and 15 % of the livestock. Agriculture is a critical sector of the Indian economy. Though its contribution to the overall Gross Domestic Product (GDP) of the country has fallen from about 30 % in 1990-91 to less than 15 % in 2011-12, a trend that is expected in the development process of any economy, agriculture yet forms the backbone of development. An average Indian still spends almost half of his/her total expenditure on food, while roughly half of India’s work force is still engaged in agriculture for its livelihood. Being both a source of livelihood and food security for a vast majority of low income, poor and vulnerable sections of society, its performance assumes greater significance in view of the proposed National Food Security Bill and the ongoing Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) scheme. Accelerating the growth of agriculture production is therefore necessary not only to achieve an overall GDP target of 8 % during the 12th Plan and meet the rising demand for food, but also to increase incomes of those dependent on agriculture to ensure inclusiveness. As per the Central Statistics Office (CSO) revised estimates (released on 31st January 2013 of GDP, agriculture and allied sectors grew at 3.6 per cent during 2011-12, recording an average rate of growth of 3.6 per cent per year during the 11th Plan (2007-12). The Indian Agriculture growth pattern has been very diverse at the state level. As...
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...Trade and development From Wikipedia, the free encyclopedia Jump to: navigation, search Trade can be a key factor in economic development. The prudent use of trade can boost a country's development and create absolute gains for the trading partners involved. Trade has been touted as an important tool in the path to development by prominent economists. However trade may not be a panacea for development as important questions surrounding how free trade really is and the harm trade can cause to domestic infant industries come into play. Contents [hide] * 1 Overview * 2 Agriculture * 3 Market access * 3.1 Market access to developed countries * 3.1.1 Barriers to trade * 3.1.2 Producer support * 3.1.3 Lack of capacity * 3.2 Market access to developing countries * 4 Market access is vital, but not enough * 4.1 Support for agricultural production * 4.2 Support for participation in trade and the global economy * 5 World Trade Organization negotiations * 6 See also * 7 References * 8 Further reading * 9 External links Overview[edit] The current consensus is that trade, development, and poverty reduction are intimately linked. Sustained strong growth over longer periods is strongly associated with poverty reduction, while trade and growth are strongly linked. Countries that develop invariably increase their integration with the global economy, while export-led growth has been a key part...
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...[Abstract] agricultural tax system reform of China's basic objectives are: to establish a market economy can meet the requirements are conducive to the Economic integration of urban and rural areas will help to support agriCulture and the world to protect and facilitate the integration of the tax system. Around this goal, the agricultural tax system reform, the basic points should be highlighted the following aspects: 1. Abolish agricultural taxes taxes, the tax burden on farmers into the main tax system. Lower taxes, reduce the tax burden on farmers. Can be considered in bringing agricultural products into value-added tax system, tax, agricultural value-added tax should be set at 10%. In other taxes, there are also all the necessary tax concessions given to the farmers. 3. The agricultural tax in the form of money from a material change. China's current agricultural tax system is the formation of the initial founding of New China, and its impact on national control grain resources, stability, economic relations between urban and rural areas, increasing the state's financial revenues and ensure the supply of agricultural products and so the city has played an active role. However, with the economic Development caused by changes in socio-economic relations, especially in the establishment of a socialist market economy, the overall institutional arrangements and accession to the World Trade Organization trend, the current agricultural tax system is not adaptive and even disadvantages...
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...surpass China? This is no longer a silly question”. The July 23rd 2011 issue of The Economist observed; “Twenty years ago they said the yardstick against which India should be measured was its potential. On that measure, there is much to do.” As a fledgling democracy, India’s economic experiment of planned development was held out as an example to many aspiring low-income countries in the 1950s. While some countries raced ahead in the development process, India lagged behind. This is evident from the fact that it took 40 long years from 1950-51 for India’s real per capita GDP to double by 1990-91. But, 1991-92 was a defining moment in India’s modern economic history as a severe balance of payments (BoP) crisis prompted far reaching economic reforms, unlocking its growth potential. As a result, in only 15 years, India’s per capita income doubled again by 2006-07. If the current pace of growth is maintained, India’s per capita income could further double by 2017-18, in 10...
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...FACTORS AFFECTING SMALLHOLDER COFFEE PRODUCTION IN KARAGWE DISTRICT, TANZANIA FACTORS AFFECTING SMALLHOLDER COFFEE PRODUCTION IN KARAGWE DISTRICT, TANZANIA By Rodrick Wilbroad Mugishagwe A Dissertation Submitted in Partial/Fulfilment of the Requirements for the Degree of Masters of Science in Economics (Project Planning and Management) of Mzumbe University 2015 CERTIFICATION We, the undersigned, certify that we have read and hereby recommend for acceptance by the Mzumbe University, A dissertation entitled Factors Affecting Smallholder Coffee Production in Karagwe District, Tanzania, in partial/fulfilment of the requirements for award of the degree of Master of Science in Economics (Project Planning and Management) of Mzumbe University. ___________________________ Major Supervisor ___________________________ Internal Examiner External Examiner Accepted for the Board of ………………………………… _________________ DEAN/DIRECTOR, FACULTY/DIRECTORATE/SCHOOL/BOARD DECLARATION AND COPYRIGHT I, Rodrick Wilbroad Mugishagwe, declare that this dissertation is my own original work and that it has not been presented and will not be presented at any other University for a similar or any other degree award. Signature ____________________________ Date ________________________________ © This dissertation is a copyright material protected under the Berne Convention, the...
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...INTRODUCTION Background Information The importance of agriculture in Kenya cannot be over-emphasized since it forms the backbone of the country’s economy. Agriculture contributes directly 26 per cent of the Gross Domestic Product (GDP) and another 25 per cent indirectly. It supplies the manufacturing sector with raw materials, generates tax revenue that helps to support the rest of the economy and accounts for 65 per cent of Kenya’s total exports. It also employs over 40 per cent of the total population, and, over 70 per cent of the rural population depends on agriculture for their livelihood. The agriculture sector plays an important role in Kenya’s economy (Government of Kenya, 2009), and has been identified as a key driver to achieve the...
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...Globalization and Anti-Globalization: An Indian Perspective If one is going to talk about globalization, the term globalization must be defined. That’s the easy part. Globalization is defined as free cross-border flow of goods, services, capital, labour, information, ideas, intellectual property. Everything in fact. Defined thus, globalization is more than mere trade reform. Globalization has a descriptive component, as well as a prescriptive one, with the latter more important than the former. The former is simply a factual statement. Over a period of time, globalization has increased in importance and countries have become less insular. It is possible to argue that one encountered such globalization also in the 19th century. There are however two differences between earlier phases of globalization and the present one. First, the speed of change is faster. Second, because most flows (including capital) are private ones, governments have become less powerful in controlling or determining the shape of globalization. However, there is a prescriptive element to globalization as well. The cross-country empirical evidence is fairly robust that more open economies tend to perform better than more insulated ones. Borders are after all artificial boundaries, created by governments. They are irrelevant for purposes of efficient resource allocation. The logic of Adam Smith’s specialization and division of labour does not become any less compelling because artificial...
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... American jobs did move south, particularly into the export sector. The growth in services — new supermarkets, banks, tourism — also created jobs. But overall, Mexico was unable to create enough jobs to make up for all the jobs lost because of competition from imports, particularly purchases of subsidized grains from the United States. The oversupply of labor, along with government policies that succeeded in keeping wages low, have led to a slight increase in the gap between average wages in the United States and Mexico — precisely the opposite of what Nafta was expected to do. * Unfair competition among import and domestic market In many developing countries, the liberalisation of imports has resulted in intense competition from imports that have threatened to displace some of the products of small farmers from their own domestic market. The competition emanating from imports has not been fair, in many cases. This is because imports coming from developed countries are usually heavily subsidized, and thus their...
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...Globalisation and India. Introduction Indian economy had experienced major policy changes in early 1990s. The new economic reform, popularly known as, Liberalization, Privatization and Globalization (LPG model) aimed at making the Indian economy as fastest growing economy and globally competitive. The series of reforms undertaken with respect to industrial sector, trade as well as financial sector aimed at making the economy more efficient. With the onset of reforms to liberalize the Indian economy in July of 1991, a new chapter has dawned for India and her billion plus population. This period of economic transition has had a tremendous impact on the overall economic development of almost all major sectors of the economy, and its effects over the last decade can hardly be overlooked. Besides, it also marks the advent of the real integration of the Indian economy into the global economy. Now that India is in the process of restructuring her economy, with aspirations of elevating herself from her present desolate position in the world, the need to speed up her economic development is even more imperative. And having witnessed the positive role that Foreign Direct Investment (FDI) has played in the rapid economic growth of most of the Southeast Asian countries and most notably China, India has embarked on an ambitious plan to emulate the successes of her neighbours to the east and is trying to sell herself as a safe and profitable destination for FDI. Globalization has many meanings...
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