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Posts archive for: June, 2009
  • Let Happiness Measure the Development

    Normally increase in production and thereby increase in national income is considered to be a measure of development. If we look at our politicians, bureaucrats, policy makers, economists, all seems busy in talking about growth in production and thus Gross National Product (GNP). GNP therefore becomes the measure of development. In the last two decades, United Nations Development Program (UNDP) has started the exercise of publishing Human Development Report and tries to measure development in terms of human development. Whereas GNP in measured by multiply production of goods and services by respective prices, human development in measured in terms of averaging per capita income, level of education and health indicated by life expectancy. If we closely look at human development index, we find that nations, which have achieved high levels of incomes, they tend to achieve higher levels of education and health standards. These developed countries tend to rank higher even in terms of human development index.

    National Happiness Index
    In 1974, then king of Bhutan figure Singe Wan chuck propounded this concept of national happiness index. He believed that increase in production alone could not be the basis of happiness of humans. Thus in the measurement of development, happiness should be an integral element. Since then Bhutan started giving utmost importance to the happiness of its citizens. In the last few years, countries are being ranked in terms of happiness of people by some agencies. In the regard 'Happy Planet Index' puts USA in150th position in the list of 178 nations Singapore in 131st, France 129th, Canada 111th, UK 108th and Germany in 81st position in terms of this index. India is at 62nd position in this ranking. Surprisingly Bhutan which in ranked 131st in terms of Human Development Index as published by UNDP(2008) is at 13th position in terms of happiness index. Bhutan is the only developing country, securing a place in the top 20 nations in happiness index.

    Why Rich Nations are deprived of Happiness
    Whether it is physical development or human development, both perhaps are not much relevant for happiness. That is the reasons, why nations on top of the world in terms of Gross National Product or other indicators of development are lying very low on happiness index. While earning more and more we tend to forget that ideally ultimate aim of all efforts is human happiness. If we look at rich people we find world’s 85 percent of assets are concentrated in the hands of only 10 percent people. To maximise their profits these rich people and companies do not hesitate in snatching employment from the people. Cutthroat competition, envy, ill feeling etc. are common in the process of becoming rich. Inequalities also encourage crimes. Despite large police force, we find wide prevalence of murders, burglary, thefts etc in rich nation. There crimes are on rise in countries like India also. Feeling of depression is pushing people towards suicides.
    How to Measure Happiness
    At present, we include three factors in measuring happiness namely, life satisfaction, expected life span and environment. These three elements are put together in a formulae and an index is prepared accordingly. Nations are listed in descending order of happiness. Rich nations are devoid of happiness because attempts to raise production cause environmental degradation and lust of maximizing incomes, brings down life satisfaction.
    In this context farmer king of Bhutan propounded the concept of national happiness, which was substitute for national product. Today Bhutan is the only country in the world which has maximization of nationals happiness as their declared goal and same goal is also the guiding principle for their government’s policies. According to kinley Dorji, information and communication secretary Bhutan, even industralised countries are now compelled to rethink about, whether to retain or not, the objective of maximizing gross national product. According to the new constitution as adopted by Bhutan, all government policies and programmes related to agriculture, transport, external trade etc. would be judged based on happiness caused by them and not on the basis of economic benefit they bring. In this process, both government and people have their respective role. On the one hand, Bhutan has adopted democracy and paved the way for constitutional monarch of democratically elected government and on the other hand, conducive atmosphere is provided to maximize happiness. Nine aspects have been identified in this regard, namely; environment, health education, culture, life standard, time use, community vitality and good governance. All these are analysed on the basis of 72 indicators designed for this purpose. All aspects are scientifically analysed. For instance, time utilisation aspect would include how much time one spends with his family and at work place. All these figures are then put into a formulae and happiness index is prepared. Gross National Happiness Commission of Bhutan makes reassessment of these indicators after every two years.
    However, even Bhutan is finding it difficult to maintain its happiness due to cultural pollution. They fear that their happiness may get eroded, as pillars of happiness are in danger. However, at the same time a small Himalayan Kingdom is educating the rest of the world that they design their policies with a goal to maximise happiness, moving ahead of the objective of economic growth or even human development index. Perhaps this is the only way to make this planet prosperous and happy.

  • Bimaru States Turn Around Needs a Big Push

    Today there are 28 States and 7 Union Territories in India. But all these states are not similar in terms of level of development. We can classify states on the basis of per capita income between developed and underdeveloped states. Punjab was at the top with highest per capita income in 1990-91, whereas Orissa was at bottom with lowest per capita income. By the year 2002-03, Maharashtra had reached the top and Bihar had taken the bottom position with lowest per capita income. By the year 2005-06, Haryana occupied the top slot. Out of Union Territories Chandigarh was at the top, Goa occupies the second position, and on third position is with Delhi.
    Agony of Bimaru States
    Punjab, Maharashtra, Haryana, Gujarat, Tamil Nadu, Kerala, Himachal Pradesh are undoubtedly developed states and Bihar, Madhya Pradesh, Assam, Rajasthan, Uttar Pradesh etc. are backward states. Economic analysts try to name these backward states as BIMARU by joining first letter of names of these backward states. They are called backward, as not only their per capita income in low, rate of economic growth in also very low there. We find that between 1990-91 and 2002-2003 Bihar state domestic product instead of rising, declined at the rate of about one percent per annum. We find that during this period rate of growth of gross domestic product (All India) was 5.4 percent per annum, rate of growth of State Domestic Product (SDP) was only 0.4 percent for Madhya Pradesh, 2.1 percent for Uttar Pradesh, 2.6 percent for Assam and 3.5 percent for Rajasthan.
    At aggregate level, the rate of growth of backward states was only 1.7 percent per annum. Thus it was legitimate to call these states – BIMARU states. But situations have changed since 2002-03. Data indicate towards a much better position for these states. Rate of growth of Rajasthan's SDP has been about 12 percent per annum between 2002-03 and 2006-07. This rate has been 11 per cent for Orissa, 10 percent for Madhya Pradesh and 6.5 percent for Uttar Pradesh during the same period. Bihar has also started showing signs of improvement since 2005. Bihar has demonstrated a high rate of growth of 11 percent per annum. It may not be a pure coincidence that after new government took the reign of Bihar, that the rate of growth of Bihar economy not only turned positive it became one of the fastest growing state of the country and achieved a rate of growth of 11 percent per annum during 2006-07 and 2007-08. But this is also a fact that per capita income of Bihar is still the lowest in the country. On the other hand per capita income of Uttar Pradesh, Orissa, Rajasthan, Assam, Madhya Pradesh and newly constituted state of Jharkhand is lower by 25 to 40 percent as compared to national average per capita income. This is cause of major concern. Reduction in regional inequalities is imperative not only from the point of view of improving living standards in backward states but also for faster economic development of the country at large. The importance of contribution of our vast man power specially youth in the development of the country is well established. If anyone or more states remain backward, it affects the development in education, health and other public utilities. In such states infrastructure development is also adversely affected. We find that in such states educational development index also goes down. According to the government's statistics Bihar is educationally most backward state and in the list of all state and union territories it is at lowest rank of 35.Ranks of Jharkhand, Uttar Pradesh, Madhya Pradesh and Orissa are 34th, 31st, 29th and 28th respectively. Development of Rajasthan is getting revealed in its educational development and it has reached at 19th position. Though West Bengal is considered to be developed but it comes at 32nd position, even lower than Madhya Pradesh.
    Once a state misses the train of development, it is caught into the web of backwardness. Whereas forward states get all kinds of investment proposals, backward states lag behind in investment. They get less support even from financial institution as compared to forward states. Living standards in these states are very low with no signs of improvement. Forward states enjoy maximum utilisation of national resources. According to Planning Commission per capita consumption of electricity in backward states is less than half as compared to forward states. These backwards states lag behind forward states even in terms expansion of roads, telecom, agriculture extension services, irrigation etc. They lag behind in terms of all types of indicators of human development. Life expectancy is low, literacy level is low and birth rate and death rate both are very high.
    We get a sigh of relief when we note signs of development in these backward states and it seems that they are coming out of web of under development. Now it becomes the bounded duty of growth central and state government to completely eradicate the menace of illiteracy, lack of health facilities, poverty and unemployment and infrastructural bottlenecks, all arising due to under development and place these states on right track for the betterment of the common man.
    Today according to United Nations Development Programme (UNDP) India stands at 132nd position in terms of human development. But if we make a comparison of human development index (HDI) of forward states, we find that they are comparable with HDI of nations with 60th to 100th ranks. But agony of the situation is that due to backwardness of some states, the nation is pushed to 132nd position in the world in terms of HDI. Thus even to push the nation up in International ranking, it is imperative to accelerate the economic, human and infrastructure development of backward states.

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