...how to live, as well as increasing opportunities and improving their well-being. (Measure of America, 2015) GDP is an estimate of market quantity, adding together the value of all final goods and services that are produced and traded for money, within a given period of time normally quarterly basis or annually. It is typically measured by adding together a nation’s personal consumption expenditures (payments by households for goods and services), government expenditures (public spending on the provision of goods and services, infrastructure, debt payments, defense), net exports (the value of a country’s...
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...Kritipur Prepared by Gokul Gaire MBA 2nd Semester SOMTU July 18, 2013 ABSTRACT: The rate of inflation- the percentage change in the overall level of prices- varies grately across time and cross country. The objective of this paper is to analyze the consumer price inflation in South Asian Countries from 2002 to 2010. The annual percentage change in CPI and Average Annual Growth Rate in Consumer Price Indices are analyzed to examine the trend of inflation in South Asian Countries like Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan & Sri Lanka. India has average inflation of 5% but Sri Lanka is the hardest hit by the inflation among South Asian countries. Bhutan has very low rate of inflation and Maldives has rising trend of inflation. The inflation rates are co-related with the growth rate of gross domestic product and money supply of South Asian Countries. There is positive co-relation between the rate of inflation and rate of changed in GDP at constant prices in Bangladesh, India, Pakistan, and Sri Lanka but negative correlation in Nepal. There is negative co-relation between rate of inflation and changes in money supply in Bangladesh, Nepal and Pakistan but positive co-relation in Nepal and Sri Lanka. In Pakistan the consumer price inflation is mainly due to oil price hike and food inflation. So the inflation scenario in South Asia is adverse to economic development as it is above 5% in most of the countries. INTRODUCTION: Inflation is a global...
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...«Majestic» Bhutan – Key Figures • Druk Yul» : Land of Thunder Dragons • Habited since BC 2000 • Independent through history • 38.000 km2 (1/20 of Turkey) • 700.000 Inhabitants (less than 1% of Turkey) • Buddhism since 7th Century AD • Bhutan was under 1974 a Shangri-La (politically and geographically isolated from the West) • GPD per capita : 2.100 US$ (1/5 of Turkey) • In this Shangri-La wealth wasn’t measured in GDP but GNH–Gross National Happiness • Absolute monarchy until 2008 • Since 2008 constitutional monarchy Bhutan – History & Culture & Tourism • Bhutan until 1974 Shangri-La, (geographically and politically isolated) • In 1974, tourism started with 287 tourists • First telephone in 1974 , first TV in 1999. • • • • • • • 2.850 Tourist in 1992, 7.158 in 1999, 64.000 in 2011 "High Value, Low Impact Tourism" Min. impact on unique society Tourists (except Indians) pay per day $200 (low season) and $250 (high season) McKinsey survey result Scrap $250/day, you will reach one million tourists Answer of the dragon king I want to protect my buddist culture Enterpreneur – Mr. Dasho Ugen Dorji • • • • All Kings of Bhutan since 1952 Members of Dorji Family Tashi Group of Companies founded in 1959 by Late Dasho Ugen Dorji (cousin of the king) Chairman of the Group Dasho Topgyal Dorji (Son of founder) Dorji was dispatched to India for boarding school. • From age 5 he studied at the Jesuit St. Joseph’s School in Darjeeling, • High school and college...
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...INSTITUTE OF DEVELOPING ECONOMIES IDE Discussion Papers are preliminary materials circulated to stimulate discussions and critical comments IDE DISCUSSION PAPER No. 256 Performance of Financial Institutions in Bhutan Dil Bahadur Rahut* Iván Velásquez Castellanos** Pravakar Sahoo*** Abstract The Kingdom of Bhutan is a small landlocked country in South Asia, located in the eastern Himalayas, and bordered by India and China. Bhutan is a small and fragile economy with a population of about 687,000. Nevertheless, its banking system plays an essential role in the growth and development of the country. This paper analyzes the financial performance, the development and growth of bank and non-bank financial institutions of Bhutan for the period 19992008 using both traditional and data envelopment analysis (DEA). The DEA analysis shows that financial institutions in are efficient and Bhutan National Bank has been the most efficient one. Overall, the paper finds that the ROE of the financial institutions in Bhutan are comparable to the international banks. Key words: Financial institution, performance, loan, deposit, net income, Bhutan. JEL Classification: G20; G21; G28; O16 *Chief, Research, Planning and Monitoring Department, Bank of Bhutan, Bhutan. Email: dilbhutan@yahoo.com **Bolivia Country Programme Coordinator, Konrad Adenauer Stiftung (KAS). Email: velasquezivanomar@yahoo.com ***Associate Professor, Institute of Economic Growth, New Delhi, India and Visiting ...
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...Journal of Pro Poor Growth. 01 (01) 2013. 19-28 ISSN: 2306-1669 (Online), 2310-4686 (Print) Journal of Pro Poor Growth An International Perspective http://www.escijournals.net/JPPG ACHIEVEMENTS OF MILLENNIUM DEVELOPMENT GOALS (MDGS) IN SOUTH ASIAN ASSOCIATION OF REGIONAL CORPORATIONS (SAARC) COUNTRIES: A CASE OF NEPAL Kushum Shakya* Central Department of Economics, Tribhuvan University, Nepal. ABSTRACT South Asian Association of Regional Cooperative (SAARC) countries have achieved considerable progress in socioeconomic indicators like poverty reduction, educational attainment and improved health facilities. The progress, however, is not uniform across the countries. The aim of this paper is to assess the progress made by SAARC with regard to selected Millennium Development Goals (MDGs) and its achievement and gap in Nepal. The paper shows; i) Status of SAARC countries with respect to selected MDGs, ii) Achievements of MDGs in the case of Nepal and iii) the gaps to achieving the targets. The paper shows that the most SAARC countries including Nepal have performed poorly with MDGs. It is therefore concluded that there is need to prioritize to meet all goals in post MDGs for Nepal. Keywords: SAARC, MDG, Post-MDG, socio-economic. INTRODUCTION The Millennium Development Goals (MDGs) have eight goals to be achieved by 2015 that respond to the world's main development challenges. The MDGs are drawn from the actions and targets contained in the Millennium Declaration that...
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...Introduction The Ministry of Education of Bhutan takes charge in providing children with general education from the pre-primary level to Class 12 through the primary education. It is also responsible for training teachers and for the developing the curriculum and teaching-learning materials used in the classrooms. Primary education is provided free for six years under the goal of universal access to this level of education. Primary schools are inexpensive for parents but some of them cannot send their children to schools because of financial difficulties. To address this problem, the government has established the Bhutan Poverty Reduction Strategy Paper to improve access to and quality of primary education. Since the introduction of planned development in the early 1960s, the education system in Bhutan has grown from a mere 400 students in 11 schools to over 160,000 students in over 550 schools around the country. Education today is playing pivotal role not only in meeting country’s human resource needs but also improves the quality of life, which ultimately contribute to the achievement of GNH. Today, we have realized that the success of the country goes through the education system. Towards this, the education sector in Bhutan aspires to provide an education to every single citizen, such that they become the natural resource of the country, not just in terms of helping to plan and implement the further development of the country, but also by acting as a saleable resource...
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...December 1985 when the government of Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka formally adopted its charter providing for the promotion of economic and social progress, cultural development within the South Asia region and also for friendship and co-operation with other developing countries. It is dedicated to economic, technological, social, and cultural development emphasising collective self-reliance. Its seven founding members are Sri Lanka, Bhutan, India, Maldives, Nepal, Pakistan, and Bangladesh. Afghanistan joined the organization in 2007. Meetings of heads of state are usually scheduled annually; meetings of foreign secretaries, twice annually. It is headquartered in Kathmandu, Nepal. The combined economy of SAARC is the 3rd largest in the world in the terms of GDP (PPP) after the United States and China and 5th largest in the terms of nominal GDP. SAARC nations comprise 3% of the world's area and contain 21% (around 1.7 billion) of the world's total population and around 9.12% of Global economy as of 2015. SAARC also home to world's 3rd & 7th largest Economy of world in GPP(PPP) & GDP(Nominal) terms respectively as well as World's fastest growing major Economy, that is India. India makes up over 70% of the area and population among these eight nations. During 2005-10, the average GDP growth rate of SAARC stood at an impressive...
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...EC312 International Economics Assessment (Q1) Student ID: 0926451 Word Count: 1, 498 The 2008 and subsequent global economic downturns were rooted in lax monetary policies and lack of financial oversight, leading to an aftermath of widening global imbalances, global liquidity abundance and downward pressures on real world interest rates. These resulted from mercantilist trade policies and an unprecedented increase in savings and foreign reserves of emerging economies in Asia. This essay will first explain the Mundell-Fleming (henceforth M-F) model and use it to compare current account deficits under different exchange rate regimes. It will also refer to real-life contexts and discuss limitations of the model. The M-F model portrays the short-run Keynesian relationship between an economy’s key macroeconomic variables. The assumptions and implications of the model are as follows: 1. The economy operates on a perfectly elastic aggregate supply curve. This implies that the level of economic activity, Y, is solely dependent on fluctuations in aggregate demand, as per the IS-LM framework. As prices are fixed, P is normalised to 1 and M represents both real and nominal money stocks. 2. The current account (CA) is determined independently of the capital account. PPP does not hold. CA deficits, as we will later see, depends on Y and the nominal and real exchange rate, e. The higher Y is, the greater the demand for imports; and the lower e is, the more uncompetitive domestic...
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...Using Specific examples is globalisation beneficial on a local, regional, national and International scale. “Globalisation (Globalization) – The integration of the world’s economies brought about by the rapid improvements in communication and transportation Globalisation hasn’t been something that has only affected the countries they start in E.g. on a local scale. In the UK 30 years ago our economy was driven by the secondary industry: factories etc. However due to globalisation, companies have now started to move elsewhere e.g. China, India for their factories as they can get cheaper labour. This has meant that the UK’s work force have gone from Secondary, to move Tertiary (Service based Industry). This has been beneficial for the UK as there is more money in the Tertiary sector than the Secondary, and it opens the UK to a much more educated workforce as the jobs are harder and require more training/knowledge. However not everywhere are happy about the idea of factories leaving the UK e.g. he Bosch factory in Wales. Before the factory opened this area of Wales was quite undeveloped, with very little industry bringing job shortages and run down areas. The Bosch factory brought in lots of jobs which helped develop the area; it also brought infrastructure such as roads and ports etc. This caused a multiplier effect and benefited Wales dramatically. Recently however due to Globalisation and the pull of cheap labour costs, Bosch have closed the Factory in Wales to move to a cheaper...
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...ADVANCED MICROECONOMICS II ASSIGNMENT The Look East Policy (LEP) was a recreation and correction of India’s Foreign Trade Policy. The main purpose was to revive both political ties and to build up economic linkages with South East Asia. LEP focuses on re-establishing better political security and economic co-operation. The first phase was based on ASEAN and it focused initially and mainly on trade and investment linkages. The second phase was based on expanding the definition of east, extending from Australia to china and East Asia with ASEAN as its core. The conference was graced by Sri Nitin Gadkare, honorable Minister for Road Transport and Highway, as Chief Guest. The four main objectives of the conference were: To study the policy as direction for India’s growth. To study the brunt of the policy with the changing geo political scenario worldwide. To examine the potential of the policy as a vector for economic growth and development of these regions. To bring the countries of south East Asia and Asia closer. There were 5 tracks explaining the route map for LEP. We will concentrate mainly on track 1 which was based on India’s trade and investment in South East and East Asia. The change in focus of Indian foreign policy from concentrating on the west towards east finds its source in the LEP. It also aims at redesigning the present economic architecture which will be marketed by regional trading blocs. India’s engagement with ASEAN and East Asian countries establishes...
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...MAKING VISION 2021 A REALITY: GLOBALIZATION AND REGIONAL COOPERATION CHALLENGES FOR BANGLADESH Course Name : International Economics SUBMITTED BY: Muhammad Jahangir Alam ID:40814010 14TH Batch MBA (Marketing), University of Dhaka. Date of Submission: 28.12.2010 Introduction Born from the great Liberation War of 1971, Bangladesh is a non-communal, progressive, democratic state that has worked to establish an economy and society free of inequality, and to nurture a culture of democracy and respect for human rights for all fostered by patriotism in all areas of social existence. Along with a tolerant democracy, the aspiration is for a more caring society based on a system of values rooted in the culture and traditions of Bangladesh. The country’s value system will develop as it progresses, and the values will translate from collective to individual perspectives creating a collective drive to work together towards national development. Bangladesh’s heritage, rich in content and diversity, shall have a place in our present and be the anchor for the country’s ambitions. Globalization in the broadest sense implies integration of economies and societies across the globe through the flow of technology, trade and capital. Economic globalization is a process of rapid economic integration between countries that is driven by the increasing liberalization of international trade and foreign direct investment...
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...accurately measures income on the basis of health, education Etc., we will find situation even worse. According to this 65 crore people in India are poor and it amounts to 55% population of the country. Eight states of the India (Bihar, Jharkhand, chattisgarh, MP, UP, WB, Odisha and Rajasthan) account for more people than those present in the 26 poorest countries of Africa. United Nations Children’s Fund(UNICEF) India ranks better only than Ethiopia in the number of malnourished children (under five years of age). Ethiopia has 51% malnourished children and India has 48%. India is now ranked among the 50 nations with highest under-five child mortality rate. It has been placed at number 46 in the list of 193 countries. India’s neighbors Bhutan, Nepal and Bangladesh protect their newborns much better and rank 52, 59 and 61 respectively. (2012 data of UNICEF) According to right to food campaign two thirds of our women are anemic. Around 23 lakh children, aged 1-59 months, died in India in 2005 alone. Of these, more than 60% were from five causes — pneumonia, prematurity and low birthweight, diarrhoeal diseases, neonatal infections and birth...
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...education. In this fundamental approach, for property crimes, the negative crime-education relationship remains strong and significant. The consequences of these findings are explicit and perfect. They indicate that refining education can yield major social benefits and can be a key policy tool in the drive to reduce crime. Introduction With mutual population of around 1.4 billion South Asia is home to world's half South Asia is the worlds’ most heavily populated region. South Asia as a region consists of eight countries Pakistan, Afghanistan, India, Sri Lanka, Maldives, Nepal, Bangladesh and Bhutan. Best climatic conditions and geostrategic locations raise the importance of these countries. The region has wide variety of resources alternating from natural resources to refined information technology resource based. The combined GDP of all eight countries is around USD 1.8 trillion and a per capita GDP is slightly over USD 1000. The area has wide educational and industrial base to raise the economic potential of the region. Led by robust growth in India, South Asia shows resilience in the face of turbulent international markets and remains the fastest-growing region in the world, with economic growth forecasted to gradually accelerate from 7.1% in 2016 to 7.3% in 2017, a World Bank report said. Economic growth expected to gradually accelerate to 7.3 % in 2017 from 7.1% in 2016 LITERATURE REVIEW Machin, Marie and Vujic (2011) examined that the crime reducing potential of education, presenting...
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...the Gross Domestic Product (GDP) measure is flawed as it accounts for everything that doesn’t make life worthwhile, such as cash transactions. The main message regarding the ‘The Economics of Happiness’ is that happiness is the aim of life, and virtuous actions create foundations of happiness as well as the path to a content life. As I was reading this book I noticed four main, resonating themes that occurred throughout the plot. Firstly, Anielski studies the makeup of our current economy and its everyday functions. Once the key economic terms, such as genuine wealth, value, competitiveness and capital are defined we can then begin to create a new road map for societies to use measurement index’s based on the notion of ‘wellbeing’ rather than GDP. He goes on to criticizing Adam Smith’s book title ‘The Wealth of Nations’ which failed to accurately define the word ‘wealth’ which, according to the Old Testament, means the ‘conditions of well being’. This essentially means that wealth can no longer be narrowly defined in terms of the money value of material possessions but must also include the many intangible items that contribute to our quality of life, such as spiritual well being, hope, happiness and the strength of relationships. Anielski then mentions the Genuine Progress Indicator, this measure is designed to reveal hidden environmental costs as well as several measures of both social progress (value of unpaid workers) and decline which the GDP seems to conceal. The importance...
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...FDI IN ASEAN AND SAARC: A COMPARISON OF THE TWO MAJOR TRADING BLOCKS Foreign direct investment Foreign direct investment is a foreign investment that establishes a lasting interest in or effective management control over an enterprise. Foreign direct investment can include buying shares of an enterprise in another country, reinvesting earnings of a foreign- owned enterprise in the country where it is located, and parent firms extending loans to their foreign affiliates. International monetary fund (IMF) guidelines consider an investment to be a foreign direct investment if it accounts for at least 10 percent of the foreign firm's voting stock of shares. However, many countries set a higher threshold because 10 percent is often not enough to establish effective management control of a company or demonstrate an investor's lasting interest. Entities making direct investments typically have a significant degree of influence and control over the company into which the investment is made. Open economies with skilled workforces and good growth prospects tend to attract larger amounts of foreign direct investment than closed, highly regulated economies. FDI is the sum of equity capital, other long-term capital, and short-term capital as shown the balance of payments. FDI usually involves participation in management, joint-venture, transfer of technology and expertise. There are two types of FDI: inward and outward, resulting in a net FDI inflow (positive or negative) and "stock...
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