Interaction of Fiscal and Monetary Policy

INTERACTION OF FISCAL AND MONETARY POLICY IN INDIA Introduction: Before understanding how the fiscal policy and monetary policy operate in coordination with each other, let us first understand the objective behind the formulation of these policies in brief. Monetary Policy: Monetary policy is the process by which monetary authority of a country, generally a central bank controls the supply of money in the economy by exercising its control over interest rates in order to maintain price stability and achieve high economic growth.The central bank in our country is Reserve Bank of India. The main objectives of monetary policy are price stability, controlled expansion of bank credit, promotion of fixed investment, promotion of exports and food procurement operations etc. Fiscal Policy: Fiscal policy refers to the expenditure that government undertakes in order to provide goods and services, and the way in which the government finances those expenditures.Main objectives of fiscal policy of our country are to reduce income inequalities through progressive taxation, to control inflation, to facilitate balanced regional development, employment generation, to allocate resources to social and developmental objectives, to reduce balance of payment deficits etc.At the outset, it must be recognized that both fiscal and monetary policies are essential components of overall macro-economic policy and thus cannot but share the basic objectives such as high economic growth on a sustainable basis implying equity considerations also, a reasonable degree of price stability and a viable balance of payments situation. However, all these objectives may not always be in harmony, and major concerns of each component may be different apart from the differences in time horizon of the concerned policy focus.For achieving an optimal mix of macroeconomic objectives of growth and price stability, it is necessary that the two policies complement each other. However, the form of complementarity will vary according to the stage of development of the country’s financial markets and institutions. In order to exercise these objectives there are certain tools available with the government and the central bank. Let us look at the tools available with the central bank to exercise monetary policy objectives effectively. There are five main tools which RBI uses to execute the monetary policy.They are repo and reverse repo rate, cash reserve ratio, open market operations, statutory liquidity ratio, and bank rate. The tools related to fiscal policy are public expenditure, income of the government, government borrowings. Evolution of monetary and fiscal policy interface in India: The framework for monetary and fiscal policy interface in India stems from the provisions of the Reserve Bank of India Act, 1934. In terms of the Act, the Reserve Bank manages the public debt of the Central and the State Governments and also acts as a banker to them.The interface between these two poli cies, however, has been continuously evolving. In the pre-Independence days, the Colonial Government adopted a stance of fiscal neutrality. However, requirements of the World War II necessitated primary accommodation to the Government from the Reserve Bank. In the post-Independence period, the monetary-fiscal interface evolved in the context of the emerging role of the Reserve Bank. Given the low level of savings and investment in the economy, fiscal policy began to play a major role in the development process under successive Five-Year Plans beginning 1950-51.Fiscal policy was increasingly used to gain adequate command over the resources of the economy, which the monetary policy accommodated. Beginning the Second Plan, the Government began to resort to deficit financing to bridge the resource gap to finance plan outlays. Thus, the conduct of monetary policy came to be influenced by the size and mode of financing the fiscal deficit. Consequently, advances to the Government under the RBI Act, 1934 for cash management purposes, which are repayable not later than three months from the date of advance, in practice, became a permanent source of financing the Government budget deficit.Whenever government’s balances with the Reserve Bank fell below the minimum stipulation, they were replenished through automatic creation of ad hoc Treasury Bills. Though the ad hocs were meant to finance Government’s temporary needs, the maturing bills were automatically replaced by fresh creation of ad hoc Treasury Bills. Thus, monetization of deficit of the Government became a permanent feature, leading to loss of control over base money creation by the Reserve Bank. In addition to creation of ad hocs, the Reserve Bank also subscribed to primary issuances of government securities.This was necessitated as the large government borrowings for plan financing could not be absorbed by the market. This, however, constrained the operation of monetary policy as it led to creati on of primary liquidity in the system and entailed postponement of increases in the Bank Rate in order to control the cost of Government borrowings. The Reserve Bank Act, therefore, was amended in 1956 empowering the Reserve Bank to vary the cash reserve ratio (CRR) maintained by banks with it to enable control of credit boom in the private sector emanating from reserve money creation through deficit financing.The single most important factor influencing monetary policy in the 1970s and the 1980s was the phenomenal growth in reserve money due to Reserve Bank’s credit to the government. With little control over this variable, monetary policy focused on restricting overall liquidity by raising the CRR and the SLR to high levels. The balance of payment crisis of 1991 recognized the fiscal deficit as the core problem. It, therefore, necessitated a strong and decisive coordinated response on the part of the Government and the Reserve Bank.Assigning due importance to monetary manag ement, fiscal consolidation was emphasized and implemented in 1991-92. An important step taken during the 1990s with regard to monetary-fiscal interface was phasing out and eventual elimination of automatic monetization through the issue of ad hoc Treasury Bills. Even though fiscal dominance through automatic monetization of fiscal deficit has been done away with over the years in India, the influence of fiscal deficit on the outcome of monetary policy has continued to remain significant given its high level.High fiscal deficit, even if it is not monetized, can interfere with the monetary policy objective of price stability through its impact on aggregate demand and inflationary expectations. Fiscal-Monetary Co-ordination: In Inflation Management: Maintaining a low and stable level of inflation is one of the major goals of macroeconomic policy. Since inflation is viewed by the traditional monetarist approach as a monetary phenomenon, monetary policy is recommended as the major tool for inflation management.However, the role of fiscal policy in inflation control is also recognised both in terms of the impact of high fiscal deficit on aggregate demand and inflation as well as short-term inflation management through its policy of taxes and subsidies. Also, given the two-way interaction between fiscal deficit and inflation, optimal co-ordination between monetary and fiscal policies would be critical to achieve the goal of price stability. This section attempts to understand the role of fiscal and monetary policies in inflation management and the implications of the interaction between these policies on inflation.MSS scheme: Another example of fiscal-monetary co-ordination came in the form of introduction of the Market Stabilization Scheme (MSS). Under the MSS, treasury bills and dated securities were issued by the government. The scheme aimed at improving monetary policy that was expected to lose its efficacy in the face of paucity of instruments to sterilize liqu idity arising from large capital inflows that required intervention in the foreign exchange markets. The initial burden of sterilization was borne by the outright transactions involving the sale of dated securities and treasury bills.However, due to the depletion in the stock of government securities, the burden of liquidity adjustment shifted to LAF. The LAF was essentially designed to handle marginal liquidity surpluses/deficits. For absorbing the liquidity of a more enduring nature, the MSS was conceived. Fiscal-monetary policy co-ordination also received a fillip from the Debt Swap Scheme (DSS), which was recommended by the Finance Commission. It enabled the state governments to substitute their high-cost loans from the centre with fresh market borrowings and a portion of small saving transfers.How should the coordination be? In view of the complex nature of interface, coordination between fiscal and monetary policies has to be considered from several angles. Both are aspects of shared overall macro-economic policy objectives. Hence, at the first level, the question is whether the relevant fiscal-monetary policy mix is conducive to the macro objectives. The relevant policy mix relates to the level of fiscal deficit, the pattern of financing especially the extent of monetisation and the dependence on external savings.Secondly, whether operating procedures of monetary and fiscal authorities, especially debt and cash management are consistent and mutually reinforcing. The interactions between operations of monetary authority and public debt management described earlier in this part of the presentation are obviously relevant. Thirdly, whether credibility of both monetary and fiscal policies is achieved in a desirable direction. Thus, a credible monetary policy can help moderate interest rates provided the fiscal authority does not give rise to a different set of expectations.Fourthly, whether due cognizance has been taken of the fact that monetary and fiscal p olicy adjustments operate in different timeframes. Monetary policy as is well known , can be adjusted to alter monetary conditions at a shorter notice than fiscal policy. Monetary policy changes can be undertaken at any time, unlike fiscal policy changes most of which are generally associated with the Annual Budget. Finally, harmonious implementation of policies may require that one policy is not unduly burdening the other for too long. Mutual respect and reinforcement is undoubtedly the ideal to which both policies and authorities should subscrib

Hemingway and Art Essays

Hemingway and Art Essays Hemingway and Art Essay Hemingway and Art Essay Essay Topic: Pulp Fiction The Sun also Rises Name: Instructor: Course: Date: Hemingway and Art Ernest Hemingway was an influential artist of the 20th century. He was an author and a journalist and most of his individual works inspired the rise of fictional writing throughout the 1900s. As an author, Hemingway’s writings were influenced by the various events that occurred in the 20th century, particularly the First World War. His experience of the war and the influence of modernism were the fundamental aspects that led to Hemingway’s use of pulp fiction to establish meaning through dialogue and action. Regarding art, it is essential to assess Hemingway’s stories as illustration of forms of art through comparison with another formidable painter of the 20th century, Thomas Hart Benton. The main art form that Hemingway used in his writing was the iceberg theory (Theory of Omission). Through this type of writing, Hemingway believed that he could describe an action and at the same time express a dissimilar message regarding the action. For instance, in his book, Big Two-Hearted River, Hemingway uses the iceberg theory by concentrating on Nick Adams’ action of fishing and at the same time asserting Adams’ concentration on fishing to the degree of ignoring the repulsiveness of his experience of war (Hemmingway, 101). Moreover, most of his content was based on his experience of the First World War, which led him to the incorporation of realism in his works while using fictional events to assert the themes he portrayed. Apparently, his writing style used the concept of imagery and symbolism by creating patchworks of images to convey meaning. Thomas Hart Benton was another prominent artist of the 20th century. His works were mostly paintings that defined the Regionalist Art movement. Regionalism, as the name suggested, sought to capture the American rural life (Wolff, 67). Despite both artists being born in the same period, their forms of art were different. While Hemingway embraced modernism, Benton adapted regionalism. There were several similarities between the two artists. Both artists captured the pioneer aspect of the American society. For instance, Ernest Hemingway, in his book, The Sun Also Rises includes the American West, which remains to be the epitome of America in the 1930s (Hemmingway, 96). Similarly, Benton captured the life of rural America by painting the daily life of inhabitants of the American West. For instance, the completed Independence Murals of 1962 by Benton addressed different aspects of the American West (Wolff, 200). The art form Hemingway utilized sought to attach a different and compounded meaning to something that seemed meaningless. The use of the iceberg theory allowed Hemmingway to exemplify the social purpose of his art form by addressing various social issues such as the effect of World War I, emancipation of women, existentialism and death. Benton’s art form of Regionalism addressed controversial issues such as racism through his depiction of the Ku Klux Klan in the Indiana Life murals (Wolff, 307), slavery and the oppressed rural inhabitants of America. Both artists used art as a means of expressing meaning on the views they sought to exemplify. To both, art was art if it possessed meaning. However, with the advent of abstract expressionism, which led to the extinction of regionalism, art no longer required meaning. Hemingway, through his art, sought to include content as well as form in order to couple the use of his omission theory to complement the subjects he addressed. The s ame goes for Benton who, through regionalism, blended the issues addressed by incorporating his form in his paintings. Civic responsibility involves social responsibility as well. Comparing with Hemingway and Benton, artists have a civic responsibility to the society by engaging in social participation through their compositions. Since civic responsibility is democratic, artists can project their own opinions through their works. Ernest Hemingway, through his experience as a journalistic correspondent, harnessed his writing skill. As an artist, Hemingway achieved both positive and negative criticism through his works. The same goes for Benton, who achieved positive criticism and negative criticism due to some of his paintings. However, every artist is entitled to their opinions since it forms the basis of their artistic impressions regarding their views. The freedom of art permits artists to capture anything and twist it to relay inner and authentic expression. a) The Independence Murals b) â€Å"Parks, the Circus, the Klan, the Press† in the Indiana Life Murals Hemingway, Ernest. Big Two Hearted River; Homage to Ezra Pound. Paris: This Quarter, 1925. Print. Hemingway, Ernest. The Sun Also Rises. New York: Scribner, 1996. Print. Wolff, Justin. Thomas Hart Benton: A Life. New York: Farrar, Straus and Giroux, 2012. Print.

Free Essays on “The Reign Of The Emperor Nero”

Nero, the fifth emperor of Rome, was originally named Lucius Domitius Ahenobarbus, but his name was changed to Tiberius Claudius Nero Caesar on February 25, 49 (Krasavin). He was connected by blood to the second Caesar, Augustus, through his father (Griffin 20). Nero was thought to be a born emperor; he addressed the Senate in Greek and had all of his petitions granted by the young age of fifteen (Krasavin). Nero was of average height, had blemish-covered skin, and suffered from body odor. He had auburn-colored hair styled in ringlets. He had gray-blue eyes, a thick next, spindly legs, and was overweight (Lissner 126). Nero was not a proficient speaker, and it is believed that his tutor Seneca, who was a great influence in the shaping of his character, wrote most of his speeches (Lissner 111, Krasavin). Nero studied almost all of the â€Å"liberal disciplines,† but his mother Agrippina believed that philosophy was an unsuitable subject for an emperor to study (Krasavin). Nero had a stepbrother named Britannicus, Claudius’s natural son, but Nero was declared the royal heir early on. In 53, Nero married Octavia, his half-sister (Griffin 29-30). Nero’s ultimate succession to the throne was due to his mother, who had considerable power and influence in Roman politics. Many believe that Agrippina brewed the poison that killed Claudius so her son could take over the throne. On October 13, 54, Nero was officially proclaimed empersor of the Holy Roman Empire (Krasavin). When he ascended to the throne, Nero claimed that he had no enemies and that he was taking the throne free from any desire for revenge. He wanted to get rid of favoritism, lobbying for appointments, and corruption. He promised to reform the courts, give the Senate every freedom, and not declare war (Lissner 112). However, Nero’s mother was very power-hungry. When Nero fell in love with a slave girl named Acte, Agrippina realized that she was losing her ... Free Essays on â€Å"The Reign Of The Emperor Nero† Free Essays on â€Å"The Reign Of The Emperor Nero† Nero, the fifth emperor of Rome, was originally named Lucius Domitius Ahenobarbus, but his name was changed to Tiberius Claudius Nero Caesar on February 25, 49 (Krasavin). He was connected by blood to the second Caesar, Augustus, through his father (Griffin 20). Nero was thought to be a born emperor; he addressed the Senate in Greek and had all of his petitions granted by the young age of fifteen (Krasavin). Nero was of average height, had blemish-covered skin, and suffered from body odor. He had auburn-colored hair styled in ringlets. He had gray-blue eyes, a thick next, spindly legs, and was overweight (Lissner 126). Nero was not a proficient speaker, and it is believed that his tutor Seneca, who was a great influence in the shaping of his character, wrote most of his speeches (Lissner 111, Krasavin). Nero studied almost all of the â€Å"liberal disciplines,† but his mother Agrippina believed that philosophy was an unsuitable subject for an emperor to study (Krasavin). Nero had a stepbrother named Britannicus, Claudius’s natural son, but Nero was declared the royal heir early on. In 53, Nero married Octavia, his half-sister (Griffin 29-30). Nero’s ultimate succession to the throne was due to his mother, who had considerable power and influence in Roman politics. Many believe that Agrippina brewed the poison that killed Claudius so her son could take over the throne. On October 13, 54, Nero was officially proclaimed empersor of the Holy Roman Empire (Krasavin). When he ascended to the throne, Nero claimed that he had no enemies and that he was taking the throne free from any desire for revenge. He wanted to get rid of favoritism, lobbying for appointments, and corruption. He promised to reform the courts, give the Senate every freedom, and not declare war (Lissner 112). However, Nero’s mother was very power-hungry. When Nero fell in love with a slave girl named Acte, Agrippina realized that she was losing her ...

Equality is promoted in sikhism Essays

Equality is promoted in sikhism Essays Equality is promoted in sikhism Essay Equality is promoted in sikhism Essay The word Sikh means pupil in the Punjabi linguistic communication. Sikhs are pupils and followings of Guru Nanak ( B. 1469 ) , the laminitis of the Sikh tradition. Guru Nanak was succeeded by nine Gurus or holy instructors. Since 1708, the Sikh Guru has been their spiritual Bible, the Guru Granth Sahib. There are over 20 million Sikhs worldwide, doing Sikhism the 5th largest organized faith in the universe. ( hypertext transfer protocol: //www.sikhnextdoor.org/students/learn ) This essay will try to measure ways in which equality is promoted, to accomplish this, is critical to overlook at some of the instructions of Sikhism. One of the chief facet of Sikh practical response to equality can be found in the instructions of the Gurus get downing with Nanak, the first Guru, who after he had a powerful mystical experience, in which he received a Godhead naming to convey people to an consciousness of God, said there is no Hindu, there is no Muslim . This brief statement give us a glance of a new get downing procedure towards equality, get downing from understanding unity ( Shackle and Arvind,2005, pg.43. ) . The instructions of the Gurus are non set as philosophical pacts or codifications, but as poesy with a strong devotional prominence, which is designed to be sung or recited. Sikhism does non deduce from any established credo, it does non contend any predating one. Sikh doctrine and faith are enlighten from within the Indian heritage. Far from disassociating it wholly from Hinduism, they have accepted the Hindu pantheon of Supreme beings without any difference. Lakshmi, Durga, Brahma, Shiva and Vishnu are celebrated divinities in the vocals of the gurus. There is no effort to deny their being or deity. The attempt is merely to set them as lesser divinities functioning the supreme Lord. ( KAUR RAIT, 2005, pg.17 ) Sikhism preaches a message of devotedness and recollection of God at all clip, true life, and equality of world. Because of this Sikhism is unfastened to all through the instructions of its 10 Gurus enshrined in the Sikh Holy Book and the life Guru Sri Guru Grand Sahib. The Sikh doctrine and instructions put great accent on the importance of seting others before oneself. where ego exists there is no God. Where God exists there is no ego . ( Guru Nanak ) It promotes a classless society, giving more importance to virtue than wealth. The position of an person should be determined by workss or virtues non by category place. All should be treated as equal irrespective of their material resources. Guru Arjun Dev said, The wisdom of God looks upon all likewise, such as the air current that blows likewise for the common man and the King . ( W.H. McLeod, 1999, pg.32 ) The Sikh construct of equality applies of course to both adult male and adult females and is promoted through the instructions and practises of the Gurus. Sikhism advocates sex equality and agreements adult females an equal topographic point in society. At the emerging of Sikhism the Gurus condemned patterns prevalent in India in the 15th century which undermined adult females, such us the gauze of adult females, sati and female infanticide. Sikhs allowed adult females to remarry, and Guru Nanak condemned the usage to have on the head covering. in India sati and female infanticide were merely lawfully abolished in the 19th century. Sikh Gurus allowed adult females free, unrestrained and equal engagement in the religious every bit good as societal life, in fact they give adult females what should ever been theirs anyhow ; full equality to take part to spiritual services, to be equal spouses in matrimony and household life. If some of the work forces protested that adult females were nescient, the Gurus said allow them show their ignorance. Sikhism is a practical faith and has nowhere ignored facts. It recognises that adult females can talk out of ignorance, but so can adult male. ( Nanak,2006, pg.150. ) The accomplishment of equality is farther demonstrated in the ceremonial usage of the Khalsa a signifier of baptism. New Members, male and female alike are committed to continuing the Rahit ( Sikh codification of moralss and rites ) and assist the community. The importance to Sikhs for equality is besides manifested in the Langar Meal ( Community Kitchen ) is portion of the act of worship and is a really of import facet of Sikh life, it was instituted for a societal issue, as the society was divided into many castes and the difference between Hindus and Muslims. It was made compulsory by Sikh Guru that merely when 1 would sit down at the same degree as the other and eat together that one can fall in the Sangat ( Company of Holy ) .Thus, the cookery, cleansing of dishes and helping of nutrient happens with everybody involved irrespective of their background. All of them sit on the land, as it is consider to be leveled and eat nutrient. These public activity were considered impossible amongst the rule of the category witting Indian society. Where harmonizing to purification system, sharing of nutrient, drink and utensils touched By person from a lower caste was considered as made impure. ( Nesbitt, 2005, pg 32. ) The pattern of Langar repast is still in consequence at Gurudwara ( Sikh topographic point of worship ) . Another given name for langar is Pangat, Sikh households consider it s a privilege to supply the langar and function it to others. ( Mayled, 2002, pg.12 ) On human rights, Gurus rules of equality was a natural thing that came from their religion. God loves us without differentiations of caste, credo, coloring material and sex. Equality implies tolerance of differences, bing in frock, nutrient, usage and so on. For Sikh the province as a critical function to play in the formation of an ideal society. It is ever stressed that whoever roles over the province should ever be a dispensers of justness and equality and must neer exert their authorization despotically. They are responsible to God the Supreme Sovereign, for all their actions. They are merely agent commissioned to regulate in the mode of Plato s ; with justness, kindness, understanding and advance the public assistance of their people. They are to carry on their maps, as a authorization from God. To this last position the Sikh Gurus gave a radical bend by underscoring that whoever regulations is non responsible to God entirely, but to the people as good, for whose good they are set up by God. Therefore if a swayer deviates from the way of justness and responsibility, it is merely to offer opposition to his incorrect making. ( O.P.Ralhan,1997, pg.72 ) The Sikh faith Teachs that life continues after decease in the psyche and non in the physical organic structure. Therefore the last act of giving and assisting others through variety meats contribution is both consistent with and in the spirit of Sikh instructions. ( Benedetti, 2008, pg.57 ) To restart we can decidedly state that from the beginning, Sikhism give adult females equality with work forces non merely in religion`s personal businesss. Both attend services as equal members and behavior services, to work together In fixing and functioning for the communal repast. They portion equal duties in all the societal and cultural activities at the gurdwara. Sikh adult females and work forces take portion on equal footings as president, secretaries, and activities organisers. The Sikh Gurus neer said that adult male and adult females should play precisely the same function in every country of life. They thought that work forces and adult females should esteem and value every bit the different functions that each undertakes. In the Sikh matrimony vows accent is on common fidelity, and this once more brings to our heads in another practical competition the word equality ( Singh,1998, pg.22. ) . In position of all that has been presented so far, to many of us the ideal of equality to which Guru Nanak appealed the people in the 15th century significantly could function as a theoretical account in our ain twenty-four hours an age, and could give a new significance, a new way, a new genuineness to our ain cause of equality chartered merely in recent decennaries in the West. Bibliographies: ENRICO BENEDETTI,2008, Living Donor Organs, McGraw Hill companies USA CHRISTHOPHER SHACKLE and ARVIND PAL SINGH MANDAIR,2005, Teaching of the Sikh Gurus, Published by Routledge,70 Madison Ave, New York. KANWALIJT KAUR SINGH, 1998, Sikhism for today, Oxford University Press, Oxford, England NESBITT E. , 2005, Sikhism A Very Short Introduction. Oxford University Press, Oxford, England NIRMAL NANAK, 2006, pg.150, Sikh doctrine and faith, New down imperativeness group publishing house, Slough, Berkshire, England O.P.RALHAN,1997, The great Gurus of the Sikh, Anmoul publications, New Delhi India. SATWANT KAUR RAIT, 2005, Sikh adult females, Trentham books Limited, Stoke on Trent, Staffordshire, England. W.H. MCLEOD, 1999, Sikhs and Sikhism, Oxford University imperativeness, New Delhi ) hypertext transfer protocol: //www.sikhnextdoor.org/students/learn.html ACCESSED ON 7/04/2010

Critically assess the contention that temperate forests are in Essay

Critically assess the contention that temperate forests are in equilibrium with climate - Essay Example librium with its climate by considering paleocological studies concerned with the effects of climate change to ancient forests as well as more recent studies of the ;problem of global warming and its effects on temperate forests. Do temperate forests exhibit stability in terms of cover, biodiversity and function in the carbon cycle? What is causing temperate forests to decline if it is indeed in equilibrium with climate? The article â€Å"Forests and climate change† (FAO Corporate Document Repository) states that forests serve an important function in the environmental balance as a carbon pool. A carbon pool is the storage area where carbon dioxide is released or stored. The rate of exchange normally depends on the life cycle of the forest elements. Ideally, the forests are in a state of a perpetual carbon sink, which is defined as a system in which there is more carbon going in than out. Equally admirable is when the amount of carbon absorbed from the atmosphere is equal to the amount of carbon released back into the environment. Unfortunately, especially since the Industrial revolution, this balance has been upset to an increasing degree until the effects of the climate system imbalance has become too severe to be ignored. There have been several efforts in limiting, and hopefully eventually eradicating, this imbalance, with minimal success. One of the more seemingly ecologically correct notions is to implement forest management policies to preserve existing forests and to extend its area through afforestation. Dudley states the preservation of the old temperate forests would be of benefit to the ecology. However, he further implies that the establishment of newer, faster-growing but ecologically unfit forests would be detrimental to the cause of ecological salvaging. Temperate forests are found mainly in western and central Europe, the eastern side of North America and northeastern Asia. These are scattered all over the middle and high latitudes although

How global prices of tobacco have fallen during the land reform in Essay

How global prices of tobacco have fallen during the land reform in Zimbabwe from the year 2000 - Essay Example Tobacco production from Zimbabwe has considerably reduced after the land the implementation of land reform policies in 2000 by the Robert Mugabe government. Zimbabwe government blames natural calamities such as unexpected droughts, floods, and problems global economic orders as the reasons for the heavy downfall of tobacco production in Zimbabwe. In realities, such claims are absolutely nonsenses. The major reason for the current problems in tobacco production is the land reform policies implemented at the beginning of 2000 and the subsequent price drops of tobacco in global market. It should be noted that Zimbabwe is the number one tobacco producer in African region and the third largest in the world behind America and Brazil. â€Å"Malawi and Zimbabwe accounted for just under 70% of tobacco produced in Sub–Saharan Africa (SSA) during1965-2004 and 75% during the 1990s. The share of SSA tobacco leaf exports accounted for by Zimbabwe and Malawi is even higher – 87% duri ng 1965-2004† (Poulton et al, p.6). Moreover, Zimbabwe is the world's biggest tobacco exporter, and tobacco is the country's biggest foreign-currency earner, bringing in some $430 million in 1994† (Zimbabwe Tobacco Exports). ... The remaining 6 million hectares have been reserved for national parks and wildlife, and for urban settlements†(Zimbabwe). Tobacco and maize are the major agricultural crops in Zimbabwe. Majority of the tobacco produced in Zimbabwe is exporting to overseas countries. In fact the major source of foreign money for Zimbabwe is tobacco export. Under such circumstances, any price dips of tobacco in global markets may adversely affect the growth prospects of this country. The share of major crops in the agricultural export of Zimbabwe is illustrated in the following figure. Share of agricultural exports. (Zimbabwe). From the above figure, it is evident that tobacco production has increased consistently from the period from 1985 to 2000, even though some of the other crops suffered setbacks during this period. Moreover the value of exports also increased considerably during this period. However, from 2000 onwards, agricultural sector in general and the tobacco sector in particular sta rted to exhaust in Zimbabwe. Zimbabwe governments implemented many changes in the agricultural sector which brought more harm than the good. For example, the programme of â€Å"fast-track land resettlement and redistribution† started in 2000, has brought many problems in Zimbabwe. The above programme is still continuing in Zimbabwe even amidst criticisms from both internal and external sources. In fact these land reformation policies created more panic among the farmers their interests in farming has completely lost at present. Land ownership is a controversial subject in Zimbabwe over the last few decades. Governments implemented periodical changes in land ownership which brought many political and economic changes in the country.

Public finance Research Paper Example | Topics and Well Written Essays - 2500 words

Public finance - Research Paper Example The main aim of any social security measure is to provide the confidence for individuals and families that their quality of life would not be eroded by economic or social eventuality. It includes sickness, old age, family, unemployment, maternity, invalidity benefits, and medical care. In democratic countries, implementation of welfare schemes for the vulnerable groups such as children, women, and aged people with disabilities is the political necessity of the society (â€Å"Vito Tanzi’’). People of the country need security against certain possible risks to which they are perennially exposed. The family is the oldest and the primary institution of social security. The situation leads to need for social security differs from place to place. In Europe, industrial revolution which concentrated at urban and industrial centers affected the rural folk badly by disturbing the institution of social security in the joint family system. When an individual was unable to take car e of his/her family, society comes forward to protect them while realizing the importance of social security. In United Kingdom, laws were enacted for providing minimal food and shelter in a workhouse to the poor. Along with these, additional economic and social security measures such as private savings, private insurance, life insurance, mutual aid, mutual benefit schemes, and compensation by employers’ medieval guilds were implemented both by government and private sectors (â€Å"Madhava Rao’’). Social security The need for social security support for any country is greater than ever. Governments should provide protection for their citizen against economic risks in the form of economic benefits and tax credits. These may help families with the costs of bringing up children and enable to save for retirement which provides support for them in their old age. In the way governments so far ruled Britain took many steps to redistribute income to alleviate poverty, and help people to maintain living standards. Since 1997, governments carried out major changes in both policy and administration to reform the social security and tax systems with the purpose of modernizing the welfare state. In social security, mainly two basic entitlements, viz, human rights and citizenship rights were becoming an important factor. Both these together include economic, social and cultural rights (â€Å"Julia Griggs’’). Human rights are generally universal and unconditional. They have seen as placing responsibilities towards an individual. On the other hand, citizenship rights are related to membership of a particular country. General citizenship includes the responsibilities such as paying taxes, care for children, and uphold the law. However, the terms and conditions of rights and responsibilities differ from country to country as some countries spend more on social security and their demanding conditions match with generous rights. Both human rig hts and rights of citizenship have been used as arguments for economic, social as well as cultural rights. Adding, the right to social security involves the right to gain access and maintain benefits. Public Finance Public finance generally deals with the finances of the government which includes the rising and disbursement of its funds, and is concerned with the operation of the public treasury. In recent days, the study of public finance is increasingly assuming importance as it is a matter of