When one mentions educational institutions of India what immediately comes to mind are the IIT's, IIM's , NIT's and the like.They are indeed centers of excellence in learning.But the picture in the rest of the country is not as sanguine.A study by NASSCOM reveals that a vast majority of graduates passing out every year are not employable in organisations.Most colleges don't have infrastructure comparable to international standards.Add to this the shortage of faculty that most of the colleges including the IIT's and the IIM's face and we have a grim future ahead as far as education is concerned.
The fact that only about 25% of technical graduates are considered employable by IT companies must come as a blow to the vast number of engineering colleges churning out students in lakhs every year.The amount of pre-training needed is indicated by the fact that IT majors house mini-universities on their 'campuses'.A more practical and industry oriented approach is needed with regards to the teaching methods.The syllabus should also be a reflection of the current trends in the concerned industry.And a more flexible approach of credit system must be given some serious thought.
The shortfall of experienced faculty in most educational institutions is alarming.The fact that students who pass out earn more salaries than their teachers doesn't make it an attractive option at all.So its hardly surprising when professors decide to strike(often at critical times like the onset of an exam) to make their voice heard.In higher educational institutions the problem of attrition to foreign universities is mainly due to better scope for research and monetary as well as non-monetary benefits.
Education is a public good(and should be a basic right as well) and hence the government takes it upon itself to impart it.The very fact that the government 'educates' the people who will elect it may be open to argument.Education hardly gets a bite of the budget pie - it is more often than not utilized as a political instrument(quotas for instance).Allotting more funds towards education would seem like a good enough solution.But just pumping money where there is lack of vision would only lead to a downfall.Efficient utilisation is a complementary and necessary addendum.And a possible alternative to explore would be allowing private participation in this shackled sector.
Private universities including foreign ones will bring much needed funds and expertise to attract good faculty.Infrastructure issues would have to be dealt with by them to maintain competitive advantage.And by encourage corporate tie-ups we can ensure that companies have an assured source of good quality human resource at their hands and can reduce their training needs.What more - the increased supply of good graduates with respect to rising demand will stabilise their salaries which will be a feel good factor for the faculty(who will have better pay than present) .The government can chip in with their funds for scholarships,examinations etc. and focus more on primary education.
India has a great hope in its demographic dividend(large working population) to fulfill its dream.Making that population skilled and educated enough will turn it into reality.
Tuesday, February 20, 2007
Tuesday, February 13, 2007
Agriculture - the black sheep
You know there is inflation when you start seeing pictures of onions in newspapers(don't know why onions always hog the limelight).On a more serious note one cant ignore that dreaded word 'Inflation'.It has now reached a two year high of 6.58%.And a vital contributor are agricultural products with some food grains inflating by even 20%.Lack of supply is the reason why the prices are shooting up.And prices of food items hit the general public(and the politicians) the hardest.
The news of farmer suicides in Vidarbha never cease to stop these days.They bear a horrid testimony to the fact that agriculture has indeed ceased to provide the yield that it used to earlier.The agricultural sector is under performing like never before.It's growth rate has steadily declined.Its share in the GDP has also fallen down.In fact it is one of the factors dragging down the economy.Green Revolution seems like a distant past.
Manufacturing and services now are the fastest growing sectors.But agriculture still forms a sizable share of the GDP.And the problem is that it employs almost 60% of the workforce of the country.It is vital that major part of a countries workforce should be not be engaged in activities that are least productive.So the two approaches would be reducing workforce dependent on agriculture or making it more productive.The solution lies in reconciling the two to achieve a proper balance so that neither agriculture is too neglected nor too many people are employed in it when it is less productive.
Farm lands in India are largely fragmented.Add to the fact that most are owned by families who exclusively work on them which results in lands employing more manpower than necessary.This form of disorganization in the farming sector has to be reduced.Better organization will lead to lesser labor efficiently producing higher yield.Increasing productivity would involve introducing technology and improving irrigation.What about those who are displaced - it is expected that most of the people will be absorbed in manufacturing and services.This will ensure that manpower is involved more efficiently.This form of migration of labour from agricultural activities to other jobs has already started in a gradual manner.
Keeping aside the supply side constraints there are other factors that add to the prices of food grains- the middlemen.Since most food products are perishable the farmer has to sell it in the market for a price which is dictated by the middlemen.So the high amount that consumers pay(inflation) passes through a lot of hands and the farmer may never actually recover his deserved return(farmer suicides).The aim should be reduce the people involved between the producer and the consumer so that the consumer would get the best price and producer the best return.Organized farming dealing with organized retail would be an ideal way to start.
We must ensure that the black sheep(agriculture) doesn't lead the herd(the economy) to stray off the path of progress.
The news of farmer suicides in Vidarbha never cease to stop these days.They bear a horrid testimony to the fact that agriculture has indeed ceased to provide the yield that it used to earlier.The agricultural sector is under performing like never before.It's growth rate has steadily declined.Its share in the GDP has also fallen down.In fact it is one of the factors dragging down the economy.Green Revolution seems like a distant past.
Manufacturing and services now are the fastest growing sectors.But agriculture still forms a sizable share of the GDP.And the problem is that it employs almost 60% of the workforce of the country.It is vital that major part of a countries workforce should be not be engaged in activities that are least productive.So the two approaches would be reducing workforce dependent on agriculture or making it more productive.The solution lies in reconciling the two to achieve a proper balance so that neither agriculture is too neglected nor too many people are employed in it when it is less productive.
Farm lands in India are largely fragmented.Add to the fact that most are owned by families who exclusively work on them which results in lands employing more manpower than necessary.This form of disorganization in the farming sector has to be reduced.Better organization will lead to lesser labor efficiently producing higher yield.Increasing productivity would involve introducing technology and improving irrigation.What about those who are displaced - it is expected that most of the people will be absorbed in manufacturing and services.This will ensure that manpower is involved more efficiently.This form of migration of labour from agricultural activities to other jobs has already started in a gradual manner.
Keeping aside the supply side constraints there are other factors that add to the prices of food grains- the middlemen.Since most food products are perishable the farmer has to sell it in the market for a price which is dictated by the middlemen.So the high amount that consumers pay(inflation) passes through a lot of hands and the farmer may never actually recover his deserved return(farmer suicides).The aim should be reduce the people involved between the producer and the consumer so that the consumer would get the best price and producer the best return.Organized farming dealing with organized retail would be an ideal way to start.
We must ensure that the black sheep(agriculture) doesn't lead the herd(the economy) to stray off the path of progress.
Tuesday, February 6, 2007
The F word
Sonia Gandhi in a letter to the PM stated:
“I have received suggestions from many quarters about the desirability to first study the possible impact of transnational supermarkets on livelihood security of those engaged in small-scale operations... I thought I would convey this to you so that you may consider having the relevant issues properly examined before further decisions are taken.”
A seemingly innocuous request(one might even argue how someone who is not a part of the Union Cabinet makes such a demand)- to study the possible effects of Foreign Direct Investment in Retail.One can easily see who the "quarters" are - the Leftists in the coalition have made their opposition very clear.What is a concern is that in Indian politics a study means....delay.The entry of Wal-Mart,Carrefour etc at this time when Indian biggies haven't yet matured is vital.It will mean that Reliance,Birlas and likes would be kept on their toes.And more competition means better prices for the consumers.
The potential benefits of FDI in developing economies are manifold and their effects in India post-reform are well documented.They have even been endorsed by PM Manmohan Singh himself.Add to that a large amount of jobs that are likely to be created along with a steady flow of capital.
So whats the catch- the fear that smaller neighborhood stores will be wiped out.But with 97% market share they are more likely to play a part- and a significant one too.Reliance will pass on the efficiency of its supply-chain to them by allowing them to buy on a wholesale basis.And when one takes into account the massive amount of commercial space likely to be required , kirana stores will more than happily rent it out.
The reform process has seen a gradual growth of foreign firms in India.And all the fears of them gobbling up the Indian market have been proven wrong.On the contrary, Indian firms are on a foreign acquisition spree.The caps on FDI are in place to allay any fears.But the reforms need to continue - regardless of political compulsions - if we are to make progress.
There's no need to blank out this F-word!
“I have received suggestions from many quarters about the desirability to first study the possible impact of transnational supermarkets on livelihood security of those engaged in small-scale operations... I thought I would convey this to you so that you may consider having the relevant issues properly examined before further decisions are taken.”
A seemingly innocuous request(one might even argue how someone who is not a part of the Union Cabinet makes such a demand)- to study the possible effects of Foreign Direct Investment in Retail.One can easily see who the "quarters" are - the Leftists in the coalition have made their opposition very clear.What is a concern is that in Indian politics a study means....delay.The entry of Wal-Mart,Carrefour etc at this time when Indian biggies haven't yet matured is vital.It will mean that Reliance,Birlas and likes would be kept on their toes.And more competition means better prices for the consumers.
The potential benefits of FDI in developing economies are manifold and their effects in India post-reform are well documented.They have even been endorsed by PM Manmohan Singh himself.Add to that a large amount of jobs that are likely to be created along with a steady flow of capital.
So whats the catch- the fear that smaller neighborhood stores will be wiped out.But with 97% market share they are more likely to play a part- and a significant one too.Reliance will pass on the efficiency of its supply-chain to them by allowing them to buy on a wholesale basis.And when one takes into account the massive amount of commercial space likely to be required , kirana stores will more than happily rent it out.
The reform process has seen a gradual growth of foreign firms in India.And all the fears of them gobbling up the Indian market have been proven wrong.On the contrary, Indian firms are on a foreign acquisition spree.The caps on FDI are in place to allay any fears.But the reforms need to continue - regardless of political compulsions - if we are to make progress.
There's no need to blank out this F-word!
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