Economic reforms and reduction of regional disparities, Microeconomics

Economic Reforms and Reduction of Regional Disparities:

Another important objective of development is to reduce regional disparities. Government has been helping the backward states with higher allocations so that regional disparities could be reduced. 

But the reform process has been emphasising the use of market forces to attract investments. Experience reveals that the relatively developed regions are able to attract more resources - both economic and social - if markets are given a free play. The question of reducing regional disparities is sidelined. It would, therefore, be advisable to understand the impact of economic reforms on regional
disparities among the states. 

Data provided in Table 8.12 reveal that NSDP in forward states indicated a growth rate 6.0 per cent per annum during the period 1990-91 to 2000-01, but as against them, it grew in backward states at merely 1.4 per cent. This only underlined the fact that instead of reducing, it has further widened regional inequalities.

This can be observed by making a comparison of per capita NSDP. In case of Bihar, the per capita NSDP growth was negative to the extent of (-) 2.8 per cent during 1990-91 and 2000-01. In case of Uttar Pradesh, it was just 0.8 per cent. These two states account for 27 per cent of total population and thus, they pulled down the average all-India growth of per capita NSDP. If we compare the ratio of maximum and minimum NSDP, then it is revealed that this ratio was 2.7 in 1990-91 and increased to 4.6 in 2000-01. Obviously, the period of economic reforms has resulted in increasing regional disparities. This was due to the fact that approval of investment proposals and grant of financial assistance helped the forward states to further accelerate growth leaving behind the backward states which were not favoured by the market forces. Naturally, regional disparities in terms of growth of NSDP - both total and per capita - widened further.

Posted Date: 11/15/2012 2:44:54 AM | Location : United States







Related Discussions:- Economic reforms and reduction of regional disparities, Assignment Help, Ask Question on Economic reforms and reduction of regional disparities, Get Answer, Expert's Help, Economic reforms and reduction of regional disparities Discussions

Write discussion on Economic reforms and reduction of regional disparities
Your posts are moderated
Related Questions
what is the assumption of the model ?

1-      a-  What are the five components of a time series? b- Briefly explain how you would estimate each component. c- What does deterministc trend mean?  How do you detren

Consider a consumer with the following Cobb-Douglass utility function: U (x, y) = x α y 1-α a)  Find the Marshallian Demand for both goods. b)  Find the Price Elasticit

You have decided to sell some goods at a local music festival. You have hired a sales stand for $500. Your cost per item is $3 and you will sell each item for $5. When you did your

Suppose the demand curve for a consumer for coffee is: Q = 6 - 2P, where Q represents the number of cups per day and P is the price of coffee per cup.  1.  Suppose the con

what is direct utility in micro economics?

Suppose the total demand for wheat and the total supply of wheat per month in a market are as follows: a. What will be the market or equilibrium price? What is the equilibrium q



What are the basic questions to be answered by economic institution? Four fundamental questions should be answered by any economic institution as: a. What goods and services