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Working Papers | 1994

Export and Liberalization: A Simple Industrial Organization Approach

Patibandla Murali

This paper presents a simple theory towards putting forward two hypotheses that can be empirically verified with regard to the export behaviour of oligopoly firms in the post-liberalization period in selective Indian industries. These hypotheses are-(1) In the presence of import protection, large oligopoly firms export to protect high domestic market price and (2) within the size group of large scale firms, larger firms will have higher export orientation.

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Working Papers | 1994

Appropriate Measure of Real Value Added and Total Factor Productivity Growth in Indian Manufacturing

Dholakia Bakul H and Ravindra H. Dholakia

It is a widely held hypothesis that the Indian industry experienced a significant turnaround in its Total Factor Productivity Growth (TEPG) during the decade of the eighties as compared to the seventies. Recently it is argued that if the real value added is estimated by using the double deflation method, this hypothesis does not hold. It is also suggested that the double deflation method provides a more appropriate measure of the real value added. In the present paper, it is shown that the hypothesis of a significant increase in TFPG during the eighties in the Indian industries is clearly corroborated if sufficient care is taken about applying the double deflation method. Moreover, it is also argued that the double deflation method per se is not necessarily superior to the single deflation method for measuring the real value added.

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Working Papers | 1994

Indian Economic Forecast: July 1994

Rastogi A B

Boom conditions are prevailing in the economy but there is a danger of inflation raising its head again as the foreign exchange reserves go on increasing. The RBI's target of 55 billion of foreign capital which it can manage by open market policy will be breached very soon and the bank would be forced to abandon open market operations. With a flow of $ 5 - $ 10 billion, the RBI would be able to manage with some major changes in the monetary policy but a flow greater than $ 10 billion would force the government to go for full convertibility in March 1995. The government should take a bold step and reduce interest rates by another 2 to 3 percentage points. This would boost domestic investment, draw in imports and prick the ballooning foreign exchange reserves. It would also loosen the pressure on money supply and government deficit.

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Working Papers | 1994

The Bureaucratization of Drought Conditions: A Critique of Drought Policies

Vasavi A R

India's policies and programmes designed to address problems of drought prone areas represent a "Bureaucratic ethos" and a "development regime". Hinged on naturalistic and technocratic approaches to the definition and management of drought conditions, these programmes do not take into consideration the role of economic and social factors in the production and reproduction of drought conditions. Despite two decades of formulation and implementation the limitations of these programmes and policies have led to the denouement of conditions which have further exacerbated the degradation of these areas and the immeseration of people. Drought policies must shift from an excessive reliance on naturalistic indicators and take into consideration the ecological history and political economy of different regions. Policies to revive and sustain these regions must be grounded in the recognition of the ecological specificities of different regions and in enabling people to sustain their livelihoods.

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Working Papers | 1994

Ethical Issues in Prospecting Biodiversity

Anil K. Gupta

Biodiversity Treaty has recognized in an unequivocal manner the need for developing an accountable and equitable system for building relationship with people who conserve biodiversity and associated knowledge systems. Article 8J provides for 'involvement and approval' of the individual innovators, communities and others conserving biodiversity for accessing this resource in a manner that benefits are equitably shared. Article 15.5 stresses the need for prior informed consent. There are several other Articles of the Biodiversity Treaty which (a) legitimize national sovereignty over biodiversity resource, (b) provide mechanisms for technology transfer from countries which are advanced in technology but impoverished in biodiversity to the biodiversity rich but economically poor countries, (c) call for setting up clearing house of information etc. The treaty also provides for recognizing the importance of indigenous innovations and traditional knowledge system. The most important dilemma that one has to resolve deals with the responsibility of society towards those who have conserved biodiversity despite remaining poor. Obviously one cannot wish to keep people poor if one notices inevitable decline of biodiversity with increase in affluence. I discuss various questions that have to be addressed around seven issues or themes to help in the development of guidelines that may illuminate further deliberations on the subject. I hope we will be able to identify areas which are clear or unambiguous as distinct from areas where moral judgments have to be made. 1.) Accountability of researchers and biodiversity prospectors engaged by public or private sector in national or international organizations towards providers of biodiversity resource from wild, domesticated and public access resources. 2.) Accountability of researchers and biodiversity prospectors towards the countries from where resources are extracted. 3.) Accountability to profession engaged in generating universal knowledge and developing norms guiding this process. 4.) Accountability of international UN or other organizations which possess globally pooled germ plasm collections deposited in good faith but accessible to public and private corporations as well as other institutions without reciprocal responsibility. 5.) Natural resources as property governed by various kinds of property right regimes and consequent moral and ethical dilemmas. 6.) Accountability of civil society and consumers of products derived from prospected biodiversity or other competing alternatives. 7.) Accountability towards future generations.

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Working Papers | 1994

Compensating Local Communities for Conserving Biodiversity: Shall we Save the Goose that Laid the Golden Eggs so Long

Anil K. Gupta

Large number of local communities have conserved biodiversity and the associated knowledge systems despite remaining very poor. Sometimes, they have refused to receive any compensation in view of sharing the information. Their ethical beliefs have prevented them from accepting any valuation of their knowledge. In most cases, however, the outside extractors whether belonging to research organizations or public or private corporations have not even recognized the need for negotiating a fair compensation to local communities. Article 8J of Biodiversity Treaty requires involvement and approval of local communities, innovators and other providers of knowledge in a manner that benefits are shared equitably. This paper looks at how the local communities and individuals have generated creative solutions to their local problems by drawing upon their knowledge of biodiversity. The social exchange mechanisms in market dominated communities are contrasted with nature dominated communities. Several case illustrations of institutions as well as technologies contributing to the conservation of diversity are presented in part II. The role of networks, NGOs and intellectual property rights in conservation through experimentation, innovation, and competition is discussed in part III. Illustration of a global network, viz., Honey Bee extending to sixty two countries is provided to highlight how people to people learning across the language barriers can take place in an accountable and transparent manner. Similarly, how biodiversity contest among children have helped in identifying local genius has been illustrated. In the light of GATT, FAO undertaking on plant genetic resources and Biodiversity Treaty the changes required in the IPR system and an effective sue generis system are discussed in part IV. An operation framework for compensating creativity of farmers, tribals, pastroralists, etc., is also described along with the description of legal and institutional changes required for the purpose.

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Working Papers | 1994

Empowerment for Sustainable Development: Building Upon Local Creativity and Entrepreneurship in Vulnerable Environments

Anil K. Gupta

A transition towards sustainable development requires recognition of the fundamental contradiction between the strategies which build upon what people do not know or have and the ones which take people's knowledge systems as the basic building block. It is the latter process of building upon people's own creativity that will bring about a liberating alternative. If development is defined as process of widening the decision making choices and extending the time frame of the households, then sustainable technologies and institutions cannot be appraised in shorter time frames using higher discount rates. The paper is divided into four parts. Part one deals with the interplay between communication and power. It provides scope for empowerment of disadvantaged communities through two way communication and two way power. It is ironical that knowledge rich farmers, pastoralists, and artisans are termed resource poor in the global developmental jargons. Part two deals with the issue of creating coping by rural households in environments with varying vulnerabilities. We discuss how households with portfolios having low average return – high variance become most vulnerable. The features of market dominated communities are contrasted with that of nature dominated ones. Eco-institutional model is described in the context of informal collective choice institutions. Part three deals with grassroots technological and institutional innovations for sustainable development. The knowledge erosion is compared with the erosion of resources in single and multiple generational time frame. It is argued that sustainability can be achieved only by conserving resources and the knowledge around it both in single and multiple generational time frame. The cases of weak and strong sustainability are infereed from the combination of the variables. The institution building process is discussed with specific reference to the experience of SRISTI (Society for Research and Initiatives for Sustainable Technologies and Institutions) and Honey Bee network. The process of lateral networking implying people learning through communication in vernacular languages is discussed. The experience of 'conversation through competition' is illustrated through the discussion on biodiversity contests organized by SRISTI among children and adults in different parts of the country. Paper concludes with some lessons and issues in becoming accountable to people from whom we learn.

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Working Papers | 1994

Hire-Purchase Installments: Are you Quoting Right?

Ragunathan V and Rao C V

This paper is concerned with the practice in the financial sector to quote hire-purchase installments for 100% finance schemes and deposit linked hybrid finance schemes on the basis of equal IRRs. The paper shows the inherent problems in the methodology adopted by the industry and highlights the extent to which the industry may be under quoting in cases of its hybrid schemes and presents a more equitable approach to quotations for different schemes, the paper also presents a more acceptable approach to such quotations.

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Working Papers | 1994

Voluntary Action in India: Role, Trends and Challenges

Bhatt Anil

The paper discusses the role of modern voluntary organizations. The analytical categories of developmental, mobilization and political roles have been formulated to understand the impact of voluntary organizations on government, people and politics. The paper argues that voluntarism has brought about many innovations in doing development and working for equality and justice but its overall impact in either improving the physical quality of life or achieve justice and equality for the weak and the oppressed is insignificant. VOs have not been able to transcend their micro and local concerns. At one level VOs' role is essentially political insofar as it wants to bring about social transformation by redistributing power, status and wealth; at other level VOs have always turned away from dealing with mainstream power politics. Their micro level work in spite of its laudable achievements have reached a dead and in terms of social transformation. That is why distortions and decay have crept into the work of voluntary organizations in the last few years. It is suggested that if voluntary organizations want to bring about social transformation and avoid stagnation they must take on the task of changing and reforming political institutions, political processes and political behavior.

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Working Papers | 1994

Structure, Firm Size and Technical Efficiency: Some Observations on Indian Industry

Patibandla Murali

The empirical results of this paper, for a sample of firms belonging to a light Indian engineering industry, show that very small and large firms are relatively technically inefficient in production. The larger size group of small firms appears to realize the highest level of technical efficiency. This is explained on the basis of organizational behavior of large and small firms as a response mechanism to the product and factor market structure conditions.

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