Sunday 31 August 2014

OUTCOMES OF DEMOCRACY

OUTCOMES OF DEMOCRACY

introduction
          Chapter deals with the expected and actual outcomes of democracy in various respects, quality of government, economic well-being, inequality, social differences and conflict and finally freedom and dignity.

assessment of democracy’s outcomes

          Democracy is better because it :
(i)     Promotes equality among citizens;
(ii)   Enhances the dignity of the individual;
(iii)  Improves the quality of decision making;
(iv)  Provides a method to resolve conflicts; and
(v)    Allows room to correct mistakes.

          But not all people would be satisfied with the democracy in practice. So we face a dilemma : democracy is seen to be good in principle, but felt to be not so good in its practice. 

          The first step towards thinking carefully about the outcomes of democracy is to recognise that democracy is just a form of government. It can only create conditions for achieving something. The citizens have to take advantage of those conditions and achieve those goals.
Prudential reasons to support Democracy
accountable and responsIVE  government
®      The most basic outcome of democracy should be that it produces a government that is accountable to the citizens, and  responsive to the needs and expectations of the citizens.
          Is democratic government effective and efficient?

®      Some people think that democracy produces less effective government. It is, of course, true that non-democratic rulers do not have to bother about deliberation in assemblies or worry about majorities and public opinion. So, they can be very quick and efficient in decision making and implementation. Democracy is based on the idea of deliberation and negotiation. So, some delay is bound to take place.

®      The democratic government will take more time to follow procedures before arriving at a decision. But because it has followed procedures, its decisions may be both more acceptable to the people and more effective. So, the cost of time that democracy pays is perhaps worth it.

®      A citizen who wants to know if a decision was taken through the correct procedures can find this out. She has the right and the means to examine the process of decision making. This is known as transparency. This factor is often missing from a non-democratic government.( RTI Act 2005)

®      The democratic government develops mechanisms for citizens to hold the government accountable and mechanisms for citizens to take part in decision making whenever they think fit.

          Some disadvantages of democracy
®      Democracies have had greater success in setting up regular and free elections and in setting up conditions for open public debate. But most democracies fall short of elections that provide a fair chance to everyone and in subjecting every decision to public debate.
®      Democratic governments do not have a very good record when it comes to sharing information with citizens. All one can say in favour of democratic regimes is that they are much better than any non-democratic regime in these respects.

®      Democracies often frustrate the needs of the people and often ignore the demands of a majority of its population. The routine tales of corruption are enough to convince us that democracy is not free to this evil.

Democracy and legitimate government

®      There is one respect in which democratic government is certainly better than its alternative : democratic government is legitimate government.

®      That is why there is an overwhelming support for the idea of democracy all over the world.

®      The support exists in countries with democratic regimes as well as countries without democratic regimes. People wish to be ruled by representatives elected by them.
®      Democracy’s ability to generate its own support is itself an outcome that cannot be ignored.

 economic outcomes of democracy
®      All democracies and all dictatorships for the fifty years between 1950 and 2000, dictatorships have slightly higher rate of economic growth.

®      But when compare their record only in poor countries, their is virtually no difference

          Reduction of inequality and poverty

®      Democracies are based on political equality. i.e. one vote one value. But we find growth in economic inequalities.

®      A small number of ultra-rich enjoy a highly disproportionate share of wealth and incomes. Not only that, their share in the total income of the country has been increasing. The bottom of the society have very little to depend upon. Their incomes have been declining. Sometimes they find it difficult to meet their basic needs of life, such as food, clothing, house, education and health.
         
®      In democratic countries like South Africa and Brazil, the top 20 per cent people take away more than 60 per cent of the national income, leaving less than 3 per cent for the bottom 20 per cent population. Countries like Denmark and Hungary are much better in this respect.
         
®      The poor constitute a large proportion of our voters and no party will like to lose their votes.Democracy is the rule of majority and the poor are in majority.

®      The situation is much worse in some other countries. In Bangladesh, more than half of its population lives in poverty. People in several poor countries are now dependent on the rich countries even for food supplies.

accommodation of social diversity
®      Democracies leads to peaceful life among citizens.

®      Democracies accommodate various social divisions. Ex. Belgium has successfully negotiated difference among ethnic populations.

®      Ability to handle social differences, divisions and conflicts is thus a definite plus point of democratic regimes. But the example of Sri Lanka reminds us that a democracy must fulfil two conditions in order to achieve this outcome, namely harmony and accomodation of minority with majority.

®      It is necessary to understand that democracy is not simply rule by majority opinion. The majority always needs to work with the minority so that governments function to represent the general view.       

®      It is also necessary that rule by majority does not become rule by majority community in terms of religion or race or linguistic group, etc. Rule by majority means that in case of every decision or in case of every election, different persons and groups may and can form a majority. Democracy remains democracy only as long as every citizen has a chance of being in majority at some point of time. 

dignity and freedom of the citizens

®      Democracy stands much superior to any other form of government in promoting dignity and freedom of the individual.

®      Democracies throughout the world have recognised this, at least in principle. This has been achieved in various degrees in various democracies.

®      Societies around world have been built for long on the basis of subordination and domination. For example, dignity of women.

®      Most societies across the world were historically Patriarchal societies. Feminist Movements have created some sensitivity today, that respect to and equal treatment of women are necessary ingredients of a democratic society.

®      Democracy in India has strengthened the claims of the disadvantaged and discriminated castes for equal opportunity. There are instances still to caste-based inequalities and atrocities, but these lack the moral and legal foundations. People have democratic rights.

®      As people get some benefits of democracy, they ask for more and want to make democracy even better. That is why, when we  ask people about the way democracy functions, they will always come up with more expectations, and many complaints.

®     A public expression of dissatisfaction with democracy shows the success of the democratic. Most individuals           today believe that their vote makes a difference to the way the government is run and to their own self-interest.

®      In Nepal 75%, India 67%, Bangladesh 66%, Sri Lanka 65%, Pakistan 50%         
           Voters says that their vote makes a difference.

Sunday 10 August 2014

Money and Credit

Money & Credit

v Money - Anything which is generally accepted as payment for goods & services.
v Main Function – Medium of Exchange

v History of Money
Ø Barter system existed – prehistoric times
Ø Double coincidence of wants main feature
Ø Later  ‘cowry’  (sea shells ) came into usages
Ø Acc. To Herodotus ‘lydians’ (people around black sea ) were the first to introduce the use of gold & silver coins (650-600B.C) 
Ø India
Ø Punch –Marked coins (2500 years ago) ,earliest coins.
Ø Gupta Coins- Gold & Silver
Ø Tughlaq- Token Currency
Ø Akbar – gold mohar
Ø Paper Money was first used in China (7 century A.D)
Ø Money avoid the inefficiencies of barter system, such as ‘double coincidence of wants’

v Modern form of currency
1.  Cash (Bank Notes & Coin)
Ø Not made of precious metals- stainless steel
Ø Authorized by Govt.
Ø No Individual Can Legally refuse a payment made in rupee .

2.  Demand Deposits
Ø i.e Money Deposited with banks .
Ø Banks accept deposit & also Pay Interests.
Ø Deposits in banks can be withdrawn on demand.

3.  Cheque
Ø Cheque facility directly settle payments without use of cash .  In India cheque is valid for 3 months from the date of issue .

v Credit (loan)
Ø A Contractual agreement in which borrower receives something valuable & agrees to repay the lender at some later time .

v Bank Credit
Ø India banks keep 15% as cash and 85% is given as loan to borrower.
Reason:
Ø Depositor might ask for cash.
Ø Banks use the major portion to extend loans.
Ø Thus Banks mediate those who have surplus funds( depositor) and those who need funds (borrower) .



v Terms of credit
    I.        Collateral: asset that borrower own which is a guarantee to a lender until loan repaid.
  II.        Interest Rate
III.        Documents
IV.        Mode of Repayment

v Two Different credit situation
Ø Situation one – Earning improves
Ø Situation two –debt trap mainly agricultural Sector.

v Formal Sector
                    I.        Banks
                  II.        Co operatives

Ø RBI Supervise functioning of formal source of loan .
    I.        Monitors cash balance
  II.        Monitors Loans available to cultivators & small scale industries.
III.        Periodic auditing of loans , interest rate etc.
Ø Formal sector meets ½ of rural credit needs.

v Informal Sector
Ø No Organizational Supervision
Ø Lenders- Money lenders, traders, employers, relatives & friends.
Ø High Interest rate

v SHGs (Self Help Groups )
Ø 15- 20 members
Ø Pool  their savings
Ø Give Loan to members in need .
Note
    I.        A.T.M: Automated Teller Machine
  II.        Smart Money : Credit Card
III.        D.D. : Demand Draft





Sunday 3 August 2014

GENDER, RELIGION AND CASTE





Ø In Societies differences exist

v Gender Division
Ø It is natural biological fact
Ø However based on social expectation & stereotypes
Example
    I.        Sexual division of labour
Ø Domestic work & bringing up children –responsibilities of women
Ø Outside  work- men
Fact
Ø Majority of women do some sort of paid work outside in addition to domestic labour
Ø Their work- no recognition & not valued i.e. invisible
Ø “Time use survey “ (1998-99) says men work 6.5 hrs. & females 7hrs.  Men sleeps 12.25 hrs. women 11.10 hrs.

  II.        Women role in public life
Ø Role minimal in most societies. Women agitated for equal rights.
Ø Feminist: a woman or man who believes in equal rights & opportunities for women.
Ø Feminist movements aimed at equality in personal & family life as well.
Ø Scandinavian  countries (Sweden , Norway & Finland) participation of women in public life is very high (42%)
Ø World average is (19.7%)
Ø India male dominated “patriarchal society” (rule of father )
Ø Women in India , face discrimination, disadvantage & oppressions.
Example
1.  Literacy rate :- Women-54% (2001)       65.46(2011)
                         Men-76% (2001)              82.14 (2011)
2.  Highly paid  jobs – low proportion
3.  Ineffective equal wages act i.e Equal remuneration Act 1976.
4.  Girl child aborted result unfavourable sex ratio
Result  
Sex ratio   1000 : 933 (2001)
                 1000 : 940 (2011)
Ø State of Haryana has just 877
5.  Frequent reports of harassment, exploitation & violence.

III.        Women political representation (India)
Ø Representation very low in legislatures.
Ø 2014 percentage of women crossed 12% of its total strength for the first time in Lok sabha .
Ø State assemblies – less than 5%
Solution
Ø Reservation for women just like 1/3  seats in local self government
Ø Bill still pending for more than a decade



v Division based on religion (2011)
Religious diversity in India
1.  Hindu-79.8 %               2.Muslim-14.2%
3.Christians-2.3%            4.Sikh- 1.7%
5.Buddhist -0.7%             6. Jain-0.4%

Ø Acc. to Gandhi religion never be separated from politics. Politics be guided by ethics drawn from religion.
Ø Human rights groups says victims of riots are minorities.
Ø Different “ family laws” of different religions (i.e divorce , marriage, inheritance ) discriminates women.
Communalism
Meaning: loyalty or commitment to one’s own ethnic (mainly religion) group rather than to the wider society.
Ø When state power is used to establish domination of one religious group over the rest, then it termed as communal politics.
Communalism can take different forms in politics
1.  Most common expression of communalism prejudices, stereotypes of religious communities superiority of one’s religion.
2.  Idea of majoritarian dominance or political dominance
3.  Use of sacred symbols & emotional appeal
4.  Religious leaders plan fear in order to bring the followers of one religion together
5.  Most ugly form- communal violence i.e. riots & massacre.
Eg. India & Pakistan, 1947- 10 Lakh killed
v Secular state

Ø Constitution does not give special status to religion.
1.  Constitution provides freedom to profess practice & propagate any religion or not to follow any.
2.  Constitution prohibits discrimination on the basis of religion.
3.  Constitution allows govt. to intervene in the matters of religion. eg. “Untouchability”.

v Division based on caste

Ø Caste special to India especially in Hinduism
Meaning: a hereditary class of Indian society, based on occupational division sanctioned by rituals
Ø Caste system based on exclusion of outcaste, marriage within caste.  Caste communities did not eat with members of other caste.
Ø Worst form : untouchability
Ø SC ( Dalits) - 16.6% of total population
Ø ST – 8.6%
Ø SC, ST & OBC – 41%

v Changes in caste system
Reasons
1.  Urbanization
2.  Occupational mobility

v Caste in politics
1.  In elections candidate choosed keeping in mind caste composition of constituency.
2.  During election campaign, emotional appeal to caste sentiments
Is Indian election are all about caste?..
Ø Not true
Reasons
Ø No constituency in India has a clear majority of one single caste, Candidate need to win confidence of more than one caste.
Ø In a constituency voter can have more than one candidate from their caste.
Ø Ruling party & sitting MLA & MPs frequently lose election. that could not have happened if all caste were frozen in their political preferences.

v Politics in caste

Ø Politics too influences the caste system how?
1.  Each caste group tries to become bigger by adding sub caste.
2.  Various caste groups enter into coalition

3.  New kind of caste group formed like “Backward” and “Forward” caste groups.