Answer

A) ORIENTATION
----------------------

To induct a clarity of thinking on the theories of Economic development and

models, I wish to orient you to the following.

1) Economic theories seek to explain and predict how Economies develop (or not)
over a period of time.

2) Identification of the barriers to growth, and the method to overcome them.

3) The role of the Government to induce (start), sustain and accelerate the social
and national growth, with appropriate development polices.

4) The role of private sectors and their role in inducting (starting), sustaining and
accelerating the social and national growth.

Theories are only a generalised guidelines. These have to be shared with the
similarities and diversities of each countrys unique economic, social, cultural, and
historical experience. Hence, the applicability of a given theory vary widely from
country to country.

B) SOME TYPICAL MODELS

-----------------------------------

In the faculty of economics some dominant theories and models are accepted as a
standard and applicable, during the past 100 years.

1) BALANCED GROWTH THEORY.

Balanced growth (or the big push) theory argues that if large number of industries
are developed simultaneously, each generates a market for one another. This leads
to a development status.

2) COMPARATIVE ADVANTAGE THEORY

Economic theory that predicts all countries gain if they specialise and trade the
goods in which they have a comparative advantage. This is true even if one nation
has an absolute advantage over another country. This is a development induction
through trade.

3) DEPENDENCY THEORY

Dependency refers to over-reliance on another nation. Dependency theory uses

political and economic theory to explain how the process of international trade and
domestic development leads some low developed nations are economically
dependent on developed countries. Using this situation, how the domestic
development can be monitored.

4) HARROD-DOMAR THEORY

The Harrod-Domar model developed in the l930s suggests that domestic savings
provide the funds. This is borrowed for domestic investment purposes. This is a
within the nation development theory.

5) LEWIS THEORY

The Lewis model is a structural change model. It explains how the labour could be
oriented as a development tool, in a dual economy. Lewis growth model infers
that the industrial sector drive the economic growth of a nation. His other model
also infers that every country should moderate their pace of development to suit
their socio-economic environment at every point of time, and develop in a planned
fashion. He further derives that a group of developing nations can join together,
develop appropriate production and trade policies, to function like a developed
nation.

6) ROSTOW THEORY

This is a linear theory of development. Economies can be divided into primary,

secondary and tertiary sectors. The development history of developed countries
suggests that a common pattern of structural change in these sectors lead to a
synchronized economic development.

C) APPLICABILITY
------------------------In economics, it is impossible to differentiate the value of these theories, evaluate,
select and decide the applicable one to a given nation. It is because of the fact that
the socio-economic status in a nation continuously changes with reference to the
internal (prices, demands, population, supplies etc..) as well as the international
(import, export, currency value etc..) and universal (failure of monsoon, changes in
soil characteristics etc) environments.

All the nations tried each of these theories in turn and reached at some point in
the socio-economic classification as developed, developing and under-developed
status.
Hence the applicability of any theory or model is a trial and error process. In fact
most of the older models are obsolete in the current socio-economic status of the
world, advancing at a faster pace with techno-commercial research and internet
supported environment.

D) TRUE DEVEOPMENT MODEL

-----------------------A research and development by me with the application of mathematics has
resulted in 2 applicable model for accelerating the pace of socio-economic
development of under developed and developing nations, as well to sustain and
promote the status of the developed world.

1) ALGEBRAIC MODEL - PRODUCTIVITY & MANAGEMENT DECISION

------------------------------------------------------A) PRODUCTIVITY = SED GOALS / INPUT > 1 &
SED GOALS / OUTPUT > 1 SUBJECT TO OUTPUT / INPUT > 1
(SED = SOCIO-ECONOMIC DEVELOPMENT UNITS).

B) SOCIAL RATE OF RETURN IS IMPORTANT THAN QUANTUM RATE OF RETURN.

C) INTANGIBLE ELEMENTS ARE IMPORTANT THAN TANGIBLE ELEMENTS. (PSYCHOSOCIO-INTER NATIONAL-UNIVERSAL).

D) MANAGEMENT DECISIONS ARE OPTIMUM WHEN

SED GOALS / INPUT DECISIONS > 1 &

SED GOALS / OUTPUT DECISIONS > 1,
SUBJECT TO OUTPUT DECISIONS / INPUT DECISIONS > 1

2)GEOMETRIC MODEL - SOCIO-ECONOMIC DEVELOPMENT ACCELERATION

-----------------------------------------------------------

A) DOMESTIC INVESTMENTS THROUGH DOMESTIC SAVINGS (INDIVIDUAL /

CORPORATE / GOVERNMENT, EVEN THOUGH FOREIGN TO START WITH - EXOGENOUS
CIRCLE).

B) DOMESTIC HUMAN POTENTIAL TO MAN THE DOMESTIC TECHNOLOGY (LATEST

TECHNOLOGY MODERATED TO SUIT LOCAL ENVIRONMENTS - ENDOGENOUS
CIRCLE).

C) SYNCHRONISE EXOGENOUS AND ENDOGENOUS CIRCLES & OPTIMISE THEIR

DIMENSIONS.

welcome you withis question of value to many economic researchers and students.

01. ROSTOW'S STAGES OF GROWTH THEORY

It assumes that every nation has an inherent tendency to aim for development and
progressively strive towards that goal. But there are no guidelines in this model on
the motivational tool for a progress goal development, to lead towards such take-off
sages from under-developed to development, and measure the development. Just
after independence in 1947, India followed the first Five Year Plan with emphasis on
unilateral agricultural development, the Second Year Five Year Plan with unilateral
industrialisation etc...with foreign assistance. Uni-directional agriculture and
industrialisation without Domestic sources, as well as without equal updates in
Domestic Human and Technological infrastructure based on Rostow's theory, does
not lead the nation to an improved stage of development. Also the Productivity
aspect of development was not taken into account by this model. In the
Management decision for development, the influence of intangible factors were
never considered. These are the reason for the failure of this model in a nation like
India, which has a fairly high level of tangible wealth / intelligentsia as well as
intangible social and economic disparities.

02. HARROD-DOMAR GROWTH MODEL.

It shows that in order to grow, economies must save and invest a certain portion of
their GNP. If more they can save and invest, the faster they grow. If we look at the
relationship between savings and economic growth in India, we find the paradox of
high savings and low growth despite preferential tax treatment to savings. It is
because of the fact that Domestic Investments from Domestic Savings (Exogenous
component) is an one-sided guideline, without their proper synchronisation formula
among them, and without reference to Domestic Human potential and Technology
(Endogenous component). Government decisions with reference to Socio-Economic
Development orientation, practical Productivity measures, as well as the influences
of intangible aspects are not a part of this model. These have resulted in a
paradoxical situation in India

03. STRUCTURAL MODELS (PRIMARILY LEWIS MODEL)OF GROWTH.

This focuses on transfer of labour from agriculture, where there is surplus

labour, to the modern industrial sector where employment and productivity
are expected to rise. This model considers the possibility of the Endogenous
component of Domestic Human potential transfers, without any reference to
the appropriate Domestic technology, and the need to synchronise them with
Human component. Also assumption on Productivity rise in this model, is
quantity oriented and not Socio-Economic development oriented. Hence lobsided Management decisions based on this model, without due consideration
to the influence of intangible components, failed to bring-in the expected

development in India, having large resources and qualified/skilled surplus

labour.

04. THE INTERNATIONAL DEPENDENCE MODEL.

This draws heavily from the Prebisch-Singer thesis that describes the existence of
unequal international power imbalances as the cause of under-development in
developing countries. Closure to developed international power and their market,
truncates the development of a nation, by not taking advantage of their Research
and Development know-how, as well as the production possibility of their needs at
competitive domestic costs, prevailing due to lower level of development. Hence, it
is always wise to take advantage of international power and assistance to start with,
and progressively increase Domestic Investments from Domestic savings
(Exogenous component). Also simultaneous development of Domestic Human
potential to suit the Domestic Technology (latest Endogenous component from the
international power moderated to suit local needs), are not part of the PrebischSinger model. International influence is an intangible component, and it should be
utilised with proper precautions, with an eye on the measurement of the
Productivity of the nation, with reference to Socio-Economic development units. The
effect is that all the nationalised sectors as well as those in the exclusive control of
the government in India, are progressively offered to private parties, including
competitive bidders from international locations.

05. BOTTOM LINE.

The central focus of the non-classical counter-revolution in favour of Supply-side

Macro-economics is that, under development results from too much state
intervention by the Third World governments. Reducing government controls and
taxes are incentives for investment. But those who invest not necessarily follow the
guidelines of Exogenous rule of progressive Domestic Investment from Domestic
savings, and Endogenous rule of progressive Domestic Technology with Domestic
Human potential, and both their synchronisation. Also these should be backed with
Socio-Economic development oriented Productivity approaches and Management
Decision should be oriented with due consideration for the intangible aspects.
Unless all these complex components are taken care, there cannot be any
improvement in the national Socio-Economic development. This is what is
happening to India, even after 61 years of Independence.

The Algebraic model on redefined productivity / Socio-Economic development

oriented Management Decision guidelines, together with the Geometric model for
Socio-Economic development acceleration by DR.VSRS, are comprehensive models,

taking care of all the required components needed for the nations to progress in
development, as well as to sustain their development status on a continuing basis,
like a Development Climber's Ladder. (SOURCE : Books SED BY DRVSRS (SED =
Socio-Economic Development) and SOMA BY DRVSRS (SOMA = Social
Management) at http://www.lulu.com/drvsrs)

PUBLIC SYSTEMS MANAGEMENT IN INDIA- SOCIETAL CONTEXT:

A country's political life, Constitutional laws, and Administrative rules and

regulations and relations are greatly influenced by its societal traditions, culture and
values. In Indian society, many Public systems/ Public Organisations are created
especially to manage and relate to it with special reference to :

1) RELIGION

2) CASTE

3) LANGUAGE

4) JOINT FAMILY SYSTEM

5) WOMEN

6) GROWING VIOLENCE

7) RURAL - URBAN INTERFACE

PUBLIC SYSTEMS MANAGEMENT - ECONOMIC CONTEXT IN INDIA:

1) AGRICULTURE - BASED ECONOMY

2) POVERTY

3) UNEMPLOYMENT

4) INDUSTRIAL POLICY RESOLUTION AND MONITORING

5) MIXED ECONOMY

6) WEEDING OUT CORRUPTION

Homework Help >> HR Management

Socio-economic atmosphere on hrm
Q1. Illustrate the meaning of new economic policy?

Q2. What do you mean by economic environment?

Q3. Illustrate the meaning of changing business?

Q4. Describe the term HRM environment?

Q5. Illustrate the meaning of legal environment?

Q6. What do you mean by technological environment?

Q7. Define the term socio-economic atmosphere. Describe its influence on HRM.

Q8. Describe new economic policy and changing business in the environmental
context.

Q9. Describe the response of workers unions and management to structural

adjustment.

Socio-economic indicators for sustainability and coastal zone management

Socio-economic indicators of sustainability.
Sustainability indicators are part of the governance framework for aquaculture, and
most commentators now accept that the socio-economic as well as the
environmental dimensions of sustainability should be included.These indicators
need to measure not only the operating performance of commercial fish farms
which at its simplest could be summarized using financial ratios - but the wider
impacts of aquaculture on society at large. Indeed, it is precisely these impacts
which, within the DPSIR framework, can expected to invoke an institutional response
intended to alter the way in which aquaculture is regulated and managed. (Figure 1:
click to open a pdf).
The socio-economic indicators proposed here are summarized in Figure 2 (click to
open pdf), classified in terms of four major governance objectives supply
availability, livelihood security, economic efficiency and social acceptability.It is
important to emphasise that, like all indicators, they are often only meaningful
when used comparatively. The basis of comparison may typically be either (i)
normative i.e. the performance of aquaculture is compared with some standard or
norm considered acceptable (e.g. income per capita, environmental damage costs),

or (ii) empirical i.e. the industrys performance is tracked over time or compared
with that of another country (e.g. trends in employment, productivity, prices, etc).
Further details on each of the indicators is given on the accompanying sheets,
including an explanation of data sources and relevant studies.
Indicator name
DPSIR class
ECASA sub-group

ECASA code
Attitudes

Impact

Socio-economy

Social acceptability PUBATT

Conflicts

Impact

Socio-economy

Social acceptability CONFLICT

Consumer prices

Impact

Consumption products
CONPRODCAP

Socio-economy

Impact

Supply availability CONPRICE

Socio-economy

Supply availability

Consumption share Impact

CONPRODTOTFISH

Socio-economy

Supply availability

Damage costs
DAMAGE

Socio-economy

Economic efficiency

Impact

Employment Impact

Socio-economy

Livelihood security TOTEMP

Income

Socio-economy

Livelihood security INCCAPITA

Impact

Multiplier indicators of dependency

security
MULT
Output

Impact

Impact

Socio-economy

Socio-economy

Livelihood

Supply availability OUTPUT

Producer prices
Impact
PRODPRICE

Socio-economy

Economic efficiency

Productivity ratios Impact

PRODRATIO

Socio-economy

Economic efficiency

Profit Impact

Socio-economy

Protection costs
PROTECT

Impact

Regional dependency ratios

RDR

Economic efficiency

Socio-economy
Impact

Coastal Zone Management indicators

PROFIT

Economic efficiency

Socio-economy

Livelihood security

Indicator name
DPSIR class
ECASA sub-group
ECASA code
Aquashoreline

State Coastal zone management

ASSETS
Pressure, State, Response
ASSETS

Coastal zone management

Validated distance State Coastal zone management

Water availability

SHOREPROD

VALIDDIST

State Coastal zone management

WATERAVAIL

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Socioeconomic Dev

Socio-Economic Development

Socio-economics refers to a broad range of tackling social issues using

the methods of economics. But in more narrow sense, it covers a variety of

contemporary practices that includes interactions between individuals and groups

that form collectively the norms of the society they weave in. Socio-economics

also covers social reconstruction through multi-disciplinary methods in the fields

of sociology, history, political science and economics.

In most cases, issues regarding socio-economics focus on the impact of

social change on the economic behavior. One significant issue today is the

technological advancements impact on the traditional industries. Such affected

industry is the music and movie industry which is threatened by the digital piracy

in the Internet. As many experts said it, the digital world is a double-edged sword.

It leads to better and more convenient living but it threatens to wipe out and

extinct the traditional industries and cultures that helped to shape the earlier

world.

Change is inevitable. People just need to accept and examine thoroughly

which changes will they adapt and which will they disregard. However, change

towards development and progress should be considered entirely.

Socio-economic development is the process of social and economic

development in a society. It is measured with indicators such as GDP, life

expectancy, literacy level and employment rate. Also, less-tangible factors such

as societal liberty, personal dignity, public safety and environmental state

matters.

The contemporary thinking about socio-economic development involves

the relevant area of theoretical underpinnings. The theoretical underpinnings of

socio-economic development include the knowledge economy. Knowledge

economy is characterized by the application of information in the modes of

production of industries.

Another theoretical support is the human capital which is basically about

the human resources. Human resource involves the general health and life

expectancy, literacy rates and education, and production of public and private

employees in contribution to economic prosperity.

Social capital relates to the human well-being but on a collective, rather

than on individual sense which is effective in bringing social support and action.

Institutional networks help in giving social integration and cohesion.

With the continuous technological advancements being discovered today,

the transfer of technologies to underdeveloped regions is imperative to catch up.

On the other hand, many of these underpinning theories behind socio-

economic development have a large reliance on technology as a resource for

growth. Thus, it does not guarantee immediate success. Qualitative

understanding of socio-economic policies before the application is important to

assess it if this will bring development entirely.

Clarifying what kinds of technological investments will be taking place is

needed to estimate the cost of production and time being spent on the project.

Assessing the quality of these investments in terms of relevance and efficiency is

important in having the expected results from the project. It will help the policy

stakeholders in better understanding of the project in terms of improvement in

management and implementation.

However, the diverse nature of socio-economic factors complexes the

measurement of development. What lies above all these is that how the

evaluation of development should be closely related to what is being evaluated. It

should always be reminded that development is a process that cannot always be

predicted or controlled the matter of implementation largely influences the

management but there are some results that happen otherwise.

Also, there is a difference between quantitative and qualitative dimension

of development. It should be clearly determined before the evaluation.

Moreover, there is an existing base in socio-economic development that

already exists which tries to go beyond further on its potentials. It emphasizes the

dimension of time, the sustainable development occurs in a longer time horizon

than other factors.

Socio-economic development encompasses a wide variety of complex

issues that cant be solved just by numerous policies. Painstaking studies and

understanding of the nature of socio-economic factors is imperative in keeping

the progress forwarding.

References:

Szirmai, Adam, The Dynamics of Socio-Economic Development, 2005

Theoretical underpinnings of socio-economic development, July 2008,

http://ec.europa.eu

Doing the best in an imperfect world, November 2009

Read more: http://ivythesis.typepad.com/term_paper_topics/2010/08/socioeconomic-development.html#ixzz3b9veuieD

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