The Great Depression: Will it happen again?

Depression means economic slowdown where economic activities becomes a little

slow, lack of liquidity with the financial institutions, production comes down
because of lack of demand the purchasing power of the people comes down. A
great depression occured in 1920' s when countries suffered with great financial
losses and the production halted. The current depression is caused in the banking
sector since many defaulters did not pay their loans especially the housing loans.
Too much competition makes in the manufacturing sector makes goods cheaper.
This makes people to buy more using their debit and credit cards and eventually
they are unable to pay back to the credit cards. People used to mortgage their
property in lieu of the loans since the loan money is more than the actual cost of
the property. This is because of sudden downfall of the property rates. Sub prime
lending banks got bankrupted. Their shares come down and this resulted in the
collapse of the stock market and hence money supply to the economy got
worsened. Basically this problem is a consequence of the human attitude about
buying everything which is cheaper and those goods will be replaced by other
goods or model in just a few days or weeks.
The great depression happened in 1920' s and now will it be again? A question that
hovers in the minds of one and many. There is no guarantee that it will not happen
again. As long as the materialistic life attitude keeps on growing and markets
flooded with goods there is a danger of depression always. Money is in transaction
so fast that it changes many hands in a single day. With internet, money is
transacted in a split second. Everyone, company and country wants to be
economically rich and have huge financial resources. Wealth without hard work
may not remain longer and some time or the other due to ambitious projects and
plans there is always a possibility of becoming bankrupt whether it is individual or
company or a nation.
Adding to this is the corruption in the economy, hegemonistic attitude of the
developed countries, mushrooming MNC's, banks giving cheaper loans, super
markets, human attitude of having every modern facility irrespective of whether
the wallet allows it or not will lead to depression in future if we do not learn from
the current scenario and stop repeating the same mistakes. Collapse of the stock
markets, housing banks becoming bankrupt, people loosing jobs, lack of liquidity
in the economy, manufacturing sector, services sector becoming slow are the
features of our current economic depression. Things will be corrected by global
summits, G8 and other countries which are trying hard to bring the economy back

on track and reducing the protectionist policies. Giving subsidies and bail out plans
may solve the problem gradually. But new problems in the economic sector may
lead to depression. So we can not assume or predict exactly the problems that arise
and when they may arise and their impacts. Solutions to the problems may lead to
creation of new problems. So there is no surety that depression may not happen
again although the severity may be less or even more. No one knows, time itself
will tell.
Youth and Terrorism
The first word that comes to mind when one hears the word youth is ebullience,
enthusiasm and energy.
The energetic youth, the so called future of country are like the juvenile stage of
river which is full of flow and exuberance. And gradually slows down as it meets
the ocean in its mature stage. Similarly, the youth grows up to face the world and
look towards the challenges which emphasizes more on experience rather than
amateur talented youths. Both river and youth can be tapped for advantages and
thus can be used as excellent corporeal. But to tap the best potential of today's
youth is not an easy task, as they think that they are mature enough and best in the
world.
The main issue of concern today is that the talent and energy of the youth is getting
vulnerable and easily plundered.
Acts of terrorism underscore the urgent need to promote peace, particularly
initiated by youth as they are talented, intelligent and lifeline of the nation.
Unfortunately today some youths are diverted towards anti social activities by the
destroyers of the future or the anti-social agents. There is an urgent need to chalk
out the major reasons that attracts the intelligent and potential youth of the nation.
Is it money? Is it a better living? Or is it just revenge?
The major reasons are
They want some excitement As the case of Ajamal Kasab convict of 26\11
Mumbai terror attack
They are not equipped with most powerful tool which a human being can have i.e..
knowledge and studies.

Some people may argue that even talented engineer, doctors and many
philanthropist even resorts to this anti human act. Answer to that questions are as
follows, they equip themselves with all the technology so that they can carry
forward their mission. Which has been handed over to them after telling them the
fake stories that if they would do these activities then so called jihad mission
would be completed or God would become happy. Since when they are juvenile,
they are flooded with feelings which are antagonist to humanity. But the darker
side of the image is that they are taught that this is the best way to persuade God.
Terrorism has taken several forms today it is not just by creating terror in between
people by planting bombs, but also today cyber terrorism, bio terrorism and space
terrorism are also present to steal away sleep of the common man. All these types
of terrorism are blessed by constant support and major participation of youths. So
how these practices can be ended or at least stopped. People would say that
government should keep eye on these activities. But it is not possible for any
country to keep eye on its own progeny. It is only active participation from
common people that can reduce such activities and the day on which this thing
would happen the famous maxim by respected late PM Shri Lal Bahaduri Sashtri
would attain its global recognition.
JAI JAWAN, JAI KISAN.
Also madarssa education system should also be checked, youth especially in their
salad days should be given proper attention. And the when these thing would
happen every slum dog would become millionaire and not terrorist.
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Where Does Capitalism Go from Here?
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But where does capitalism go from here? Always a broad crunch, it seems all the
broader now that the competing paradigm the command economy is dead. Will the
various species of capitalism American, European, East Asian, to name but three
come together or move further apart? Given the new demands that will be put on
developed economies over the coming decades, will western capitalism of a
recognizable sort even survive? The main varieties of capitalism have always
differed in significant respects. In America, for instance, shareholders have a
comparatively big say in the running of the enterprises they own; workers, who are
for the most part only weakly unionized, have much less influence. In many
European countries, shareholders have less say and workers more. In Germany, for
example, the representatives of unions serve on supervisory boards; the

companies'principle bankers also have plenty of clout in the strategic decisions of

management. On this spectrum, Japanese capitalism lies even further away from
the American variety no role except to provide capital, managers have been left
alone to run their companies as they see fit namely, for the benefit of employees
and of allied companies, as much as for shareholders. Despite these differences, all
species of capitalism have had certain essentials in common. These are the things
that will need to be preserved if liberal economics is to go on to further success.
First and foremost, capitalist countries have separated, to a high degree, the realms
of politics and economics. As a result, in capitalist countries it makes sense to
think of each of these realms in its own right. Decisions about what goods and
services are provided, by whom, to whom and for how much, are made for the
most part in markets, by willing buyers and sellers. Governments in capitalist
countries participate in markets, often in big way, either as buyers or sellers, or as
regulators. But they do not except in certain narrow areas usurp the price system
altogether. When they hire civil servants, for instance, they pay a market wage
according to the kind of worker they wish to attract. Put it this way: In capitalist
countries, the extent of government intervention is a matter of politics; the manner
of its intervention is, by and large, a matter of economics. Under communism as
under feudalism, by contrast, the political and economic realms were essentially
one and the same. Those in power exercised their claims over resources in
fundamentally nonmarket ways. Illicit transactions aside, these systems left little
scope for voluntary economic arrangements. Private ownership has usually been a
feature of capitalist economies. Certainly, it is a natural counterpart, a reflection of
the separation of politics and economics. But it is not in fact a necessary
counterpart because, in achieving that separation, control matters more than the
ownership does not guarantee control. That is why you could argue, for example,
that for much of the 1980S southern China was a more capitalist place than India.
In southern China state ownership of property was and still is the rule, but
enterprise managers like farmers throughout China were given increasing freedom
to run their business themselves. Even without private property, a separation o
politics and economics was achieved, and the price system began to direct the
allocation of resources. India, on the other hand, has much more private ownership,
but until the reforms of the early 1990S it also had a system of state control that
rivaled that of the Soviet Union. A factory making bicycles needed permission to
increase its output, or to reduce it, or to start making a new kind of bicycle. This
license raj was so pervasive and intrusive that, in effect, it unified the realms of
politics and economics, despite the existence of private property. Capitalist
economies, despite such institutional differences, also have much else in common.
In the market system that flourishes when politics and economics are kept apart,
decisions about the allocation of resources are highly decentralized. Instead of an

explicit organizing intelligence, there is spontaneous and unwitting coordination

the invisible hand. Instead of planned cooperation, there is competition. This
competition extends far beyond the static rivalry of elementary economic theory
that is, far beyond competition among existing producers and their products. It also
encompasses competition among new, would be producers, ideas of the products
yet to be invented, alternative means of production and different nodes of industrial
organization. Because capitalism is decentralized and competitive, it is especially
good at conducting experiments. This may be its greatest strength. Experiments
can be conducted on a small scale and at correspondingly small expense in
resources. Successful ones reap big rewards. That, of course, provides the incentive
to undertake the experiment in the first place. But profits are also the signals for
others to follow, so successful innovations of product, service, method of
production of mode of organization are quickly taken up elsewhere. Equally
important, experiments that fail as the overwhelming majority do. Can usually be
abandoned with comparatively little pain, and at no cost to the politically powerful.
These conditions offer the maximum encouragement for efficient innovation. It is
unsurprising; therefore, that western capitalism has been relentlessly innovative.
Rapid development in East Asia has already caused much tension over trade in
America and European Community. As economic liberalization spreads, the
pressure of competition on the west's low and medium tech manufacturers will
increase. The US already runs large bilateral trade deficit with China, a fact the.
weighed as heavily in last year's debate about what tariffs to set on China's exports
as did protests over China's infringement of civil rights. Opponents of America's
free trade agreement with Mexico emphasize the threat that cheap imports pose to
America's manufacturers. In the same way, the European Community has been
inexcusably slow to grant the reforming countries of Eastern Europe liberal access
to the Community's markets. These are disturbing, if unsurprising, signs that the
spread of capitalism in the poorest parts of the world may undermine support for
the market economics in the countries where it has already worked well. Against
the pressures threatening to undermine capitalism in the coming years, the
strongest countervailing force is likely to be technology, and especially the
revolution in communications. In many industries technological progress has
reduced the fixed costs of production, making it easier for smaller firms to compete
with larger ones; or else it has developed new products that broaden the
possibilities of competition in another way. The communications industry itself is a
striking example. Where there was once a natural monopoly needing to be
regulated, namely the telephone company, there will be competition in the future.
The same phenomenon is likely to become more common in other sectors. To deal
with it, governments will try to cooperate with each other in devising new systems
of international regulation for example, the BASLE capital standards for banks, or

the harmonization of national rules in the European community. But this is

difficult, as it is likely that technology will continue to move faster than
governments. As these opposing forces work themselves out, governments of
every political complexion ought to keep two broad choices in mind. One, in
effect, is to give way to the pressures that will tend to impede the market system.
That is, to favor more trade protection, help for declining industries, an eve:
Expanding welfare state, and measures to limit cross. Border regulatory avoidance.
This may well be the course that best responds to popular demands. But it is also
the option that operates against change, and hence against growth. The alternative
is to continue the work of the 1930S, in both rich and poor countries, to extend the
scope of the market. It means, among other things, free trade; policies to protect
workers unlucky enough to be in declining industries, rather than policies to save
their jobs; and a welfare state that helps the poor, not the middle class. This may be
politically impossible; capitalism is held in low esteem in the countries it made
rich. It is, nonetheless, the pro-change pro-growth choice.
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Drug Abuse is a Social Evil
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Drug is Death: Say no to Drugs and other similar slogans visible on billboards and
newspapers are proofs of the social awareness drug abuse has attracted. Drug
related crimes are equally conscience stirring and have made people much over it.
We all have relied on the drugs. Our doctors have prescribed for the various
diseases, so, how can its use be an abuse. The use of psychoactive substances for
obtaining relief from mental tension or physical discomfort i.e.. For therapeutic
uses is legitimate use of drugs. Contrary to this, when used for attaining pleasure or
new experiences and consequent physical or psychological harm is termed as drug
abuse. Such drug abuse induces drug dependence and ultimately addiction and
habituation. In drug addicts there is enslavement to drugs and compulsion to obtain
and consume it by any means. They develop a psychological and physical
dependence on the effects of the drugs and an effect detrimental to the individual
and to the society. The abusable drugs are of various types; sedatives or
depressants that relax the central nervous systems, induce sleep and provide a
soothing effect. Stimulants activate the central nervous systems and relieve
tensions, make them aggressive and counteract fatigue. Narcotics, like depressants
affect. The central nervous system and produce feelings of pleasure strength and
lesson inhibitions. Hallucinogens produce distortion of perceptions and dream
images. Drug abuse has been explained by psychologists and sociologists. It is
generally regarded that pleasurable sensations produced by drugs reinforce their
use or it satisfies certain psychological needs, or is a response to fear and insecurity

to the conditions of modern life, often association with users is also regarded as a
reason for accepting drugs. Drug abuse can also be explained in terms of
weakening of social bonds between individuals and society due to maladjustment
alienation and noncommitments. A new dimension in drug abuse has been its use
by sports persons to enhance their potential beyond humanly endurable limits. The
incident of Ben Johnson was a jolt to the sports lovers all over the world and has
caused much thinking on effort to curb the recurrence of such incidents. However,
with unfailing regularity such controversies erupt, for example Katrin Krabe. It
would be appropriate here to search for the causes of drug abuse. Among sports
persons it can be safely attributed to the search and urge for glory. It can be an
attempt to gain an unfair advantage over the others in the achievement orientation
of modern society. The ends have become all powerful and means have been
relegated as secondary. The use of drugs among children which is most shocking
and astounding can be variously explained. Juvenile delinquents take to it in
defiance and deviance to the social values. Some children accept it under peer
group pressure and as an act of proving their masculinity. Others take to this due to
weakening of emotional bonds between parents and siblings. The children who are
in an impressionable age require much effectual and emotional bond to wean them
away from such antisocial activities. In rural areas the use of psychoactive
substance is for religious purposes and on ritual occasions. However, it is also used
to relieve fatigue and also a source of entertainment. In industrial urban setting the
use is for more or less the same reasons. Apart from the health and physical
disadvantages drug abuse causes, it has also led to e acceleration in crime. An
addict would stop, nothing to get his dose of the drug. There has been a spurt in
thefts and murders by these addicts whose dependence physical and psychological
upon the drugs is so great that the accepted values and norms of the society are
shelved and their prime concern becomes acquiring their dosage. There has been
an increase in smuggling and peddling of those drugs as the economic advantages
are numerous. It has also made the gangs engaged in such activities more vicious
and violent as the economic stakes are very high. This delineation of drug abuse
brings us to the point where reference must be made to efforts to curb their evil.
Given that the use of drugs have historical and cultural context makes prevention
more complicated. Efforts have been made to combat drug trafficking, treat addicts
and prevent drug abuse. India being on the transit route faces a challenging and
unenviable task. However, our Narcotics Drugs and Psychotropic Substances Act
has not been very effective, Seizures have increased and so have indictment for
offences but that is reflective only of the increase in those activities and not any
positive development of control of drug abuse. Other legal sanctions are merely
suggestions of intention and not actions. Government regards drugs as a source of
revenue and therefore its cultivation cannot be stopped. The inefficiency of

administrative machinery in policing and preventing abuse needs no highlighting.

The only positive development is the establishment of de-addiction and
detoxification centers which, have enabled us to salvage some people from
destruction. However, these centers are expensive and the addicts have a tendency
to relapse unless they have a strong will power and a desire to abdicate the malaise.
Voluntary associations have also been doing a commendable task. In conclusion,
we can say that drug abuse has been realized as a major evil. It is a social problem
and has legal ramifications. It has been given a high profile now and mass media
has been disseminating information to educate people with the intention of
preventing drug abuse. The battle continues and war on drugs is on.
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The Scourge of Unemployment
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One of the principal manifestations of and factors contributing to the low levels of
living in developing nations is their relatively inadequate or inefficient utilization
of labor in developed nations. Underutilization of labor is manifested in two forms.
First, it occurs as underemployment those people, both rural and urban workers
working less than they could. Underemployment also includes those who are
normally working full time but whose productivity so low that they would have a
negligible impact on total output. The second form is open unemployment those
people who are able and often eager to work but for whom no suitable jobs are
available. It is this form of underutilization of labor which is of our concern here.
Open unemployment, often includes skilled workers highly trained in sophisticated
technologies within its ambit. This involves a colossal waste of the nation's human
resources. On a different plane, such unemployment causes unfathomable trauma
and alienation on the person thus affected. The number of unemployed persons in a
developing country depends primarily on the size and age composition of its
population. In this context two observations, are of the prime significance.
Developing countries like India succeeded in substantially reducing the death rates
without bringing about a commensurate reduction in the birth rates but also created
high present dependency ratios and rapidly expanding future labor ratios. The
second observation relates to the impact of fertility decline. Even if fertility rates
were to decline its impact on labor force size and age structure would be visible
after a considerable period of time. Having made these observations we now turn
towards the aim of development for developing countries with special reference to
India. In developing countries most of the unemployment is structural, here the
demand for labor falls short of employment account of agricultural backwardness,
underdevelopment of industries and small size of the service sector. Like all other
underdeveloped countries, India presently suffers from structural unemployment
which exists both in the open and disguised forms. Apart from structural

unemployment the phenomenon of industrial recession in the last couple of

decades has also introduced, what is called cyclical unemployment. However, this
type of unemployment can be removed by antirecessionary policies and by raising
effective demand. Hence, structural unemployment remains our principal aliment.
For analytical purposes unemployment in the country may be thought to exist in
two forms: Urban and rural. Urban unemployment includes industrial
unemployment and educated unemployment while rural unemployment can be
either open or disguised. An important section of rural unemployment in India is
seasonal in nature. Most of the unemployment in urban areas is open and
undisguised. Industrial unemployment in urban areas is on the rise despite the
phenomenal expansion of the industrial sector during the Plans. The circumstances
which led to such an eventuality are many. First, there has been a rapid increase in
the economically active population which has far outpaced the growth of economy.
Secondly, population in urban areas has grown faster than otherwise warranted
because of a large influx of rural migrants. The slow growth of industries has
retarded the capacity of urban centers to absorb this surplus labor. The education
system in India continues to churn out lakhs of matriculates and graduates every
year. These people have little or no vocational training and they are unfit for any
skilful employment. The consequence of this is that they all hanker for white collar
jobs and other low paid unskilled jobs. It is not uncommon, therefore, to find
graduates and others with still higher qualifications competing for unbecoming
jobs. The imperfect education system with its theoretical bias, lack of aptitude,
maladjustments between demand and supply of educated workers are some well
documented causes of educated unemployment. Let us now look at some aspects of
rural unemployment. Seasonal unemployment in the farm sector is a normal
occurrence in India. Indian agriculture being a gamble with monsoons and the
existence of a very small proportion of irrigated land ensures that the persons
working on unirrigated tracts remain unemployed during the dry months unless
they get some employment elsewhere which is very difficult. A widely
acknowledged fact about Indian agriculture is that it is characterized by the
existence of considerable amount of surplus labor. In green revolution belt,
demand for wage labor has increased and agricultural laborers have had to be
brought in to meet this demand. As already mentioned most of the unemployment
in India is structural. Its main causes need a deeper insight. Evidently, the
demographic factor has played a major role in contributing to the rapid growth of
labor force in the country since independence. However, in the Indian context
social factors affecting the supply of labor are as important as demographic factors.
The emergence of educated women has added a new dimension to the supply of
labor force. These women have a changed perception of employment and they
have come forward in a big way to compete with men for the few jobs available.

The breakdown of the Jajmani system of tradition order, upcoming new

occupations and the expansion communication and transport facilities have
increased the mobility of labor. This has resulted in an exodus from rural dwellings
to urban locales thereby expanding the labor supply in urban areas. Evidently,
economic development in cities has failed to cope up in providing additional jobs
to these new urban entrants. Thus, in a way, at least some unemployment in the
cities can be definitely characterized as a spillover of unemployment in the
countryside. The size of employment in any country depends considerably on the
level of development. As the country develops a large proportion of workhorse
gets absorbed in the secondary and tertiary sectors. This has happened in India too
but not at the desired rate because barring a few exceptions the actual rate of
growth of national income has fallen short of the targeted rate in all successive
Plans. Moreover, the Indian planners seem to have overlooked the argument that in
the early phase of development there exists a real conflict between the objectives
of economic growth and employment. Another argument relates to the choice of
technology mix. Though no longer very fashionable, the argument rests on the
premise that for a labor abundant country like India labor intensive techniques of
production should have been employed which has not happened. The situation has
been because of stewed administering of factor prices in favor of capital. The
distorted factor price. Structure encouraged greater capital absorption at the cost of
labor. As already mentioned the education System in India is also responsible for
our predicament. We have been following the Macaulay scheme which makes no
attempt at development of human resources. It is structured to provide clerks and
lower level executives to the government; And government's needs are limited.
Thus, those who receive this kind of education are according to Gunnar Myrdal,
not only, inadequately educated but also wrongly educated. Unemployment has a
very high linkage with 1 poverty and income distribution. It not only leads to
tremendous economic hardships but also a traumatized individual existence. It
reduces the self esteem of the individual and inevitably leads to his alienation from
the society. The roots of the current problems of youth unrest, juvenile delinquency
and growing crime rates can to a large extent be traced back to the problem of
unemployment. As already mentioned unemployment underemployment in the
countryside leads to urban migration. This put and immense strain on civic
amenities in these areas thereby reinforcing the spirit of despondency and
alienation. The Government is awake toward this scourge on civilization and it has
launched various schemes like Jawahar Rozgar Yojana, Nehru Rozgar Yojana, etc.
But these Yojanas though necessary because they open direct assault on poverty
need to be streamlined and supplanted. Streamlined because these plans have a
tendency to overlap, they are manned by unmotivated, uncommitted and corrupt
personnel and they do not have a clear line of action, as such they are incapable of

rising to the challenge. In any case, they have to be supplemented by a vigorous

attack at the root of the disproportionate rise in labor force problem viz. Population
explosions. However, even the most effective population control drives will take a
long time to overcome the population momentum Therefore in the short run the
need of vocationalizing of education and expanding self-employment cannot be
overemphasized.
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Significance of Forests
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India is extremely rich in its ecology which is varied with genetically diverse forest
resources and is one of the worlds top twelve nations having mega diversity in
terms of biological resources. The plant wealth found in Indias forest are made up
of 45000 species of trees, shrubs, herbs and climbers which account for about 12
per cent of the global plant wealth. The flowering plants alone number 21000
species and almost a third of these are endemic, located mainly in 26 endemic
centers of India. Indias forests are the home of over 75, 000 species of animals of
which about 372 are mammals, 2, 000 birds, 1, 693 fishes and as many as 60, 000
insect species. Forests are removable resources and they contribute substantially to
the social and economic development of the country. They have major role to play
in enhancing the quality of our environment. The history of forest is linked with
the history of civilization. The 4000 year old Agnipurana mentions that a man
should protect trees to ensure material prosperity and religious merit. 2500 years
ago, Gautam Buddha preached that a man must plant trees every five years. The
great epics Ramayana and Mahabharata give attractive description of forests like
Dandakaranya, Mandavana and Khandvan. The Supreme God of Indus Valley was
supposed to live under Pipal trees. Pipal and Babul Plants were believed to have
descended on earth from heaven. The people in ancient times lived in harmony
with their ecosystem, which was formed by the forests. They did not cut the trees
recklessly and the forests produced more than enough for everybody. The first
indication of forestry administration is found in 300 B. C during Chandra Gupta
Mauryas reign, when a Superintendent of forests was appointed to protect forests
and wild life. Nund Rishi, the saint of Chare-shreef, preached that there would be
enough food only when there were forests. From top of the hill, he could could see
the fertile valley down below and realize that the miracle was due to fertile soil
produced by the hill forests. Similarly Lamboji, the founder of the Vaishnio sect in
the desert of Rajasthan, was preaching that to survive in the desert, green trees
should not be felled and no animals and birds be killed. The Bishnois have kept
alive this tradition of saving the Khejadi Accacia trees even at the cost of their
lives. Modern science too recognizes that forests are mothers of the rivers and

factories of soil manufacture. For the British, Indian forests were an inexhaustible
source of durable and ornamental timber and other forest products. Teak forests
along the coast of Malabar were over exploited to meet the requirements of the
British Navy. The Sandalwood trees of South India were exploited for the
European markets. The two world wars were also the periods of great devastation
of Indian forests. Forests were cut recklessly to meet the increased demand. As a
result, rich productive forests vanished, causing an irreparable damage to the
ecosystem and to the Indian people, especially the tribes. Unfortunately, the forest
destruction did not stop even after the British had left and it is estimated that India
is losing about 1.5 million hectares of forests annually. Forests have a significant
role not only in ensuring the environmental stability but also achieving economical
benefits. Forest is not just a group of trees, but is an ecosystem in itself, comprising
all the living and non-living components. The main living components of a
terrestrial ecosystem are plants dominated by trees, forming the consumer element
and decompresses of the micro organisms. Soil, water, air and sunshine form the
non-living components of a forest/terrestrial ecosystem. These components interact
with each other and evolve the ecological energy cycle which consists of two other
cyclic processes, namely water cycle and matter organic and inorganic cycle.
These processes maintain the dynamic equilibrium between the living components
and non-living components within an ecosystem. Any imbalance or deviation in
this process will lead to a total collapse of the ecosystem. Droughts and floods are
the two most important consequences of the imbalance in forest ecosystem caused
by the indiscriminate felling of trees. The forest ecosystem fulfils extremely
important protective, regulatory and productive functions both for the well-being
and development of society. The importance of forests in the ecosystem can never
be overemphasized. Forests have numerous roles to play both natural and
manmade. Natural functions involve protective and regulative services, while man
imposed functions relate to production and socio-ecological services. Plants are
valuable for us in many ways, besides protecting and improving the environment in
which we live, they control run off, check floods and soil erosion, improve soil
fertility and help in reducing temperature and pollution. Thus they work as
environmental conditioners. According to one estimate the real value of a 50 tonne
medium sized tree, by adding the prices of all items of its produce and social
benefits, rendered during the 50 years of its life time, economic benefits of around
Rs. 15, 70, 000 /-is generated to the community in the form of generation of
oxygen valued at Rs. 2.5 lakh controlling of soil erosion and improving soil
fertility by Rs. 2.5 lakh recycling of wastes to the tune of Rs. 3 lakh controlling of
air pollution valued at Rs. 5 lakh and other secondary benefits to the tune of Rs. 3.5
lakh. Thus one can visualize how much economic benefits trickle down silently to
the community through a single tree over its life span of 50 years. Rapid

destruction of forests results in natural calamities, soil erosion and also contributes
to the greenhouse effect. Plantations cannot be the substitute for the natural forests
as forests are ecosystems in itself but it can reduce the pressure on natural forests
for timber, fuel, fodder and other forest products. Therefore, opting for plantation
will be beneficial to the man and as well as to environment in the long run spite
global awareness, tropical forests are brindled at the rate of 72 acre a minute.
Worlds five billion acres of tropical forests are threatened by agriculture and poor
farmers in the developing world alone. Some 350 million people in the tropical
countries live in forests and depend upon them in one way or another for
subsistence. During the process the farmers slash and burn patches of forests to
grow crops and once the soil gets depleted of nutrients then the poor farmers move
on to clear another patch. This wanton destruction of forests is seriously affecting
the environment and is straining the biosphere. India has a land area of 38.50
million hectares under good forest cover which works out at 19.46 per cent against
a target of 33 per cent for the plains and 66 percent for the hilly regions. Although
located in the tropics, the productivity of Indian forests is amongst the lowest in the
world. At the present level of consumption of forest resources, the country needs a
minimum 0.47 hectares of forest land for every individual against the actual
availability of 0.09 hectare. Forests in most of the states in India are qualitatively
and quantitatively very poor. The foremost reason is the drastic growth in
population. Comparing Indias per capita forest land of only 0.09 hectare, Canada
has per capita forest land of 12.4 hectares and 6.8 hectares for Australia. The
human demands on forests are complex and diverse. They are related not only to
matter and energy but also to space and diversity. On the basis of available data,
India needs to have 101.33 million hectares. 33.33 per cent of reported area under
forests whereas it has only about 67 million hectares at present leaving a deficit of
34.33 million hectares. This deficiency can be made upto 83.75 per cent by
afforesting the land under miscellaneous tree crops and groves. The rest can be
covered by afforestation of 5.56 million hectares of barren land from the available
20 million hectares of barren and uncultivated land in the country. The solution to
problems of Indian forests are a lot more complicated than simply passing new
laws or restricting losing companies, or echo-labeling or any other panaceas that
are often on offer. Forest science needs to make a conceptual shift if it is to
contribute its full potential to todays needs. It was poorly linked in the past to
research on social, economic and biological issues relating to forests. During the
post independence period, efforts have been made to conserve the forests,
however, the performance does not seem to be encouraging. There is dire need for
a comprehensive effort to plug root causes of deforestation, viz population, steeped
in poverty, bad natural resource management and of course distorted forest
policies, otherwise we are heading for a Stressful biosphere as we enter the next

century 2001. Depletion of forests on the planet earth will be contributing to

growing concentration of carbon-dioxide and by the middle of the next century
civilization might oe on the threshold of Mesozoic heat warming, spelling doom. A
rise of 1 degree to 2 degree C around equator and 7 degree to 10 degree C at the
north and South Pole, will result in melting of static glaciers on mountains and the
sliding of huge icebergs from poles, rising of sea level and consequent inundation
of coastal areas. The wanton destruction of forests is seriously affecting the forests
and the environment. This is going to lead us to disaster. The demand for timber,
pulp wood, fodder etc. Is increasing at a very high rate. Measures to minimize the
gap between demand and supply of these products do not indicate any positive
response, since the demand is increasing with the increase in the population,
accompanied by the increase in income levels of the people Taking the demand of
greeting cards, each greeting card requires 10 gas of paper pulp and if we assume
that 1 per cent of the total 850 million population of the country uses greeting cards
to the extent of 150 cards per individual, then the paper pulp required will come to
1.25 million tonnes and such a huge quantity of paper pulp will entail the felling of
one million trees to obtain 3.8 million tonnes of wood. This is just, one example of
the demand of natural resource and the severe strain this biosphere has to undergo.
It could be said that forests have moved from diffused ownership wise unmanaged
and unlimited resource-status to a fully owned Govt. ownership, centrally managed
forest department and very scarce resource status in the last century. All attempts
of the Government to conserve this resource appear to have isolated the resource
from the people as far as their responsibility towards maintenance and
development of the resource is concerned, while their dependency and in-built
pressures on the-resources have on the contrary increased due to population
explosion and advancement in the use of technology. The alarming increase in
human population will demand at least four times more energy than today by the
year 2040 and the projected increase in the use of industrial wood 13 fold. Where
will the huge volume of wood required for energy use solid wood products and
paper making come from? To thinking people around the world, wood from natural
forests is becoming an unacceptable answer. A recent report of the Food and
Agricultural organization says, the demand and consumption of forest products has
risen so steeply that large investment would have to be made for future use. It
recommends private initiatives in the industry. To meet the instigated demand of
the domestic market, it is essential to redefine the objective of forest management
in the context of the national development. Thus there should be a change from the
present conservation oriented forestry to a more dynamic program of production
forestry. Considering the advantages of an aggressive orchard silviculture or
creation of manmade forests by planting, the future program should concentrate on
clear felling the mixed forests on good soils, opening them by communication, and

the planting of these areas with fast growing and valuable species, indigenous or
even exotics, yielding higher returns per unit area, per year. Wood remains one of
the most basic needs of man, with large scale uses in construction of homes, ships,
furniture, sleepers for railway tracks as well as fuel. With industrialization and
urbanization, forests have been indiscriminately felled all over the world. The earth
loses almost forty million hectares of forest area with no replacement, adding to an
ever increasing shortage of timber. India is having the best agro climatic conditions
viz. Tropical, sub-tropical and temperate climatic zones where diversified tree
species can be planted thus increasing the production with elite management
practices to have maximum biomass. This would go a long way in conserving the
ecosystem of the country within a short span of time. The estimated cost of such
national level plantation efforts comes to several thousand crores. Such an
investment is surely beyond the government resources which are already under
constant pressure to increase social spending. However, the magnitude of
investments required to establish plantations is within the scope of the business
sector. For this purpose production of forests should be increasingly privatized and
involvement of people must be from the initial stages of plantation. This further
envisages that the state forest departments should have a broader approach in forest
management activities and involve people at various decision making levels. The
present day forester no doubt talks of involving people in the protection and
management of forests, but the people at the grassroots level feel alienated. Such a
situation does not augur well in the forest management and immediate corrective
measures need to be undertaken. Of late, there is a positive response from the
corporate sector, in forestry development. Many a private companies with
dedication have Undertaken mass area plantations in various parts of the country.
Although this is mostly to cater the needs of the industries, it would also go a long
way in adding to the quantum of forest products available to the people at large,
that is why private sector companies are attempting to raise captive plantations to
augment raw materials for industries. Thus their sphere of activities encompasses,
providing soil cover and thus reducing the pressure on biosphere and side by side
provide employment opportunities to the rural poor and above all involving the
people at the grassroots level in restoration of tree environment. Efforts need to be
made by the government both at the centre as well as at state levels to involve all
possible agencies in a massive tree planting efforts based on sound management
practices accompanied by latest technologies. A world think-tank, headed by Dr.
Wiliiam Sultan, Director of Research and Strategy at Fletcher Challenge Forests,
New Zealand; advocates a bold and novel concept. A major portion of any
increased wood supply, must come from newly created plantations The initiative
and capital to grow large scale plantations must come from business sector.

Copyright www.www.examrace.com
Globalization and urbanization
Globalization and Urbanization are the terms which are interlinked with each other
in spite of the very dissimilar definitions. Globalization is a process of economy
which deals with trading across the borders for mutual growth and thus making
world as one urban city. Where as urbanization is a growth process of economy
through which the rural areas are developed into a high living standard area that is
urban area. Both concludes to growth and prosperity, but are some what different
in their perceptions. In the world where we live globalization is very essential for a
country to grow. When trades are done at a higher pace with different foreign
countries, foreign capital starts to flow in which thus increases foreign direct
investments and this in turn increases our GDP by significant numbers. This is a
basic economic policy which human beings are dealing from a very early stage of
their civilization. These policies brought industrial revolution in many western
countries. Which in turn let their financial condition to grow and prosper and now
they have most advanced cities. The citizens of these countries have a better
healthy life style. Today India is soaring high in economy, its GDP is increasing,
economic condition is getting better, more number of people are getting employed,
per capita income is increasing which means people are getting rich and their life
style is getting better, the people under poverty line are decreasing. More and more
villages are getting good infrastructure and loans are getting waived off due to
substantial growth of our service sector and thus urbanization is taking place
around the villages and the concept of r-urbanizationa recent term in use can be
visualized in the countryside areas as many barren and unused lands are been taken
up by many companies for SEZ purpose. This in turn is increasing job prospect for
many skilled workers who use to earn less through agriculture. Indeed
globalization is one of the important factors that led to all this development. It's
just because whole world has united and has come so close that demand of quantity
with quality has increased many folds. That is why India has come up with so
many shopping malls, multiplexes, and many desi Indian handicraft shops has
directly opened their outlets in foreign countries. This has been possible only
because of globalization. This economic reform of the 1990' s has given India such
an economic boost that it is at present second fastest growing economy after China.
India has already flexed their economic muscle and if this pace of globalization
and thus trading continues, it won't take more than ten years to become a super
power. But as we know everything has both positive and negative side, similarly
globalization has both sides. Till a year back we saw a very prosperous side of
globalization, but now as the recession hit American economy, the globalization

factor made the business in various countries feel serious jolts. This happened
because of over dependence on American economy which actually happened
because of this globalization factor. Haven't the other countries relied on each other
for export and import to this extend the scenario would have been much different.
In India where GDP was sailing to near about 9.5%, due to this global meltdown it
is expected to come down to around 6 7%. This meltdown ripped off many jobs
and about 20 lakhs people in India are jobless to date. This in turn has affected the
urbanization process severely, as government is going on poor funds for growth.
Thus here the main villain is the globalization. Hence we saw that globalization
was the messiah, who brought unbelievable economic growth in India, and thus
helped in urbanizing the villages and also to raise the status of people. But again
due to over dependence on this kind of policy we saw the global meltdown and
thus causing unemployment, poverty and thus reduction in economic growth,
which thus caused recession in urbanization. So we can say that over dependence
is the main culprit. A balance is therefore required to grow and prosper efficiently.

Environmental Pollution
One of the biggest problems the plaguing mother nature is the problem of
pollution. Man is just one of millions of life forms existing on the earth, albeit a
very intelligent one. But this does not entitle him to interfere in nature's law of
ecological balance. He is as much dependent upon other living forms as they are on
hire. When man or anyone else introduces something extraneous in the natural
cycle which positively harms life and creates imbalance, it is known as pollution.
Since man is the only life form who has been able to understand nature to some
extent, he is the only one in position to cause pollution and unfortunately, he has
been doing it at his own free will.
Pollution can be of many types. One of them is the Air Pollution. The very air we
breathe in and which sustains life is being poisoned by exhausts from automobiles,
smoke from chimneys, dust flam mining and construction activities and numerous
other sources of dangerous gases and vapors. Air should have a certain
composition which is mostly Nitrogen, Oxygen and very little of other gases but
these sources emit carbon dioxide, carbon monoxide, nitrogen oxides, sulphur
oxides, hydro carbons and radioactive vapors. This disturbs the composition of air
and harms all the biological processes dependent upon it.
Another type of pollution is water pollution. 90% of our body is water. We need
water for cooking, drinking, bathing, cleaning, industrial processes and cooling etc.

Many types of life forms lie in it. All animals and plants need water for survival. In
fact, presence of water is one main reason why life exists on earth. But man has not
spared even this life giver. Sewage effluents, chemical discharges, dyes,
agricultural wastes fertilizers etc. fuels of ships etc. Have converted clean,
sparkling water of rivers, lakes and seas into dull, rotting mass of sludge. The
aquatic life is being destroyed; dirty water has become the sources of epidemics,
diseases and foul smell. Fresh water bodies are being converted into chemical
ponds.
Yet another type of pollution is the land pollution. Agricultural chemicals, sewage
effluents, chemical discharges from industry, mining and construction activities
have denuded the surface of earth. Once lush green land has been converted into a
desert. Land subsidence, floods, ground water pollution, dust and fumes are all the
results of land pollution. Wild life is being deprived of its habitat and the very trees
man used to worship once, are today becoming victims of his greed and
carelessness.
While on one hand, atomic power is being used in innumerable ways for mankind's
benefit, on the other hand, the same is becoming a major and highly hazardous
source of pollution called Radiation Pollution. In this case it is not the atomic
power plants but atomic explosions that are the real culprits. Harmful rays and
particles, emitted can create abnormalities in body, deformities, mutations, skin
cancer, blood cancer and a number of other diseases.
A brief survey of pollution done above shows very clearly that it is man himself
who is responsible for his doom. His insatiable greed and use of a poor model of
development are responsible for bringing things to such a pass today. It is not that
this is the only way that development can be pursued. There are better and more
sustainable ways existing. Such a development which bases itself on man's
harmony with nature is aptly called sustainable development It defines
development as betterment of human life without jeopardizing the ability of the
future generations to live a healthy life. It has many aspects and if implemented
can help us live a better life, materially, aesthetically and spiritually.
Implementation of such a model calls for mass participation. This in turns means
that awareness and understanding needs to be generated among common people
regarding environment and its protection. For example, the scheme of Paryavaran
Vahini which includes establishing a committed cadre of environmentally
conscious and citizen who will help in protecting environment and bringing
pollutants to book, is one step in this direction. Voluntary agencies, citizens,

government and industry should join hands in such an endeavor. For example, use
of organic fertilizers, environment friendly chemicals, bio-fertilizers, biopesticides, optimum use of water etc. By agriculturists can be done if they are
informed, trained and helped by government, voluntary agencies etc. Use of ESPs
in chimneys, treatment plants, use of eco-friendly products etc. Can be done by the
industry.
Time is running out fast. We have only one earth to live in and if we do not do
something to save it, we can only start the reverse count. Let it be a duty of each
one of us to do our best to save and improve environment. We can plant trees, use
eco-friendly products, bio-degradable packings, ecomarked goods, spread the
awareness and prevent others from polluting earth. Else the day is not far when
clean water, safe air, undisturbed land may become a rarer commodity-than gold.
May be then, even man will be found only in museums.
The Nature Of Tourism And Travel
Introduction
Tourism simply refers to travelling for leisure, business or recreational purposes.
From this point of view it is clear that tourism and travelling go hand in hand. One
cannot talk of tourism without travel, and also cannot talk of travel without
tourism. Tourists usually travel and stay away from their normal areas or rather
environment for some time with an aim of getting involved in business, leisure or
other purposes.
Those tourists who travel for leisure tend to target the wildlife and also other
natural sites. The tourists who travel for business tend to target conferences .The
tourists normally help in uplifting the economies of those countries they visit.
Apart from that tourism tend to make the world to be more interactive and a better
place for everyone.
Tourism is known to be the worlds largest industry, where a lot of money is made
.It is very crucial area. Many countries around the world spend a lot of money,
billions and billions of dollars in tourism in order to ensure that it continues. As a
major player in economies of many countries, tourism provides employment
especially in the service industry in areas involving transportation, accommodation
and entertainment.

Tourism knows no borders .It involves even the locals in what is called local
tourism. So apart from tourists coming from other parts of the world, the local
tourists also find time to tour their own native country. These locals also find time
to tour other countries, and in the process tourists from other countries also tend to
find time to tour other countries as well, apart from the country of their own. This
is just in a broad way how tourism operates.
Countries like the United States, Russia, Germany, China and Brazil are known to
spend heavily on tourism. This is just an indication that tourism is not an area that
can easily come to an end. In addition, even some modified or rather artificial areas
tend also to attract tourists a lot. Tourists can go to any length to ensure that they
are comfortable where they visit.
Conclusion
Tourists spend as much money as possible just to achieve their intended targets. So
they give a better reason for tourism to thrive and continue. This confirms the
better level of tourism.
Apparel industry of Sri Lanka

The design, manufacture and export of textiles and apparel products is one of the
biggest industries in Sri Lanka, and one which plays a key role in advancing the
country's economy.[1] The apparel industry of Sri Lanka employs about 15% of the
country's workforce, accounting for about half of the country's total exports,[2] and
Sri Lanka is among the top apparel-producing countries in the world relative to its
population
Development
Sri Lanka's apparel industry began to grow significantly in the 1980s as an
alternative to India's garment manufacturers, because of its open economic policy
as well as the trade and investment friendly environment. Under the Multi Fibre
Agreement, quota regime Sri Lanka became an attractive new venue for
businesses. In 1985, Martin Trust, one of the pioneers in the development of
"speed sourcing"[5] for the American fashion retail sector, began working with Sri
Lankan textile and apparel companies. In 1986 and 1987 he established joint
venture partnerships with The Omar Group (formerly known as LM Apparels and

part of the Brandix group) and The Amalean Group which helped make the
country more competitive through knowledge transfers and technology, attracting
further foreign investors.[6] These were the first of nearly two dozen joint venture
companies in Sri Lanka which made the country competitive in the garment sector.
Including Trust's partnership with German brassiere maker, Triumph International,
and Sri Lankan company, MAS Holdings, to create a new venture called
Bodyline.[7]
When the US and other countries eliminated quantitative restrictions on garments
produced in China, many garment facilities in Sri Lanka were consolidated. As of
2010, most of the exports to the US are from MAS or Brandix, with smaller
amounts coming from the Hirdaramani Group & Jay Jay Mills Groups. Together,
these three companies account for a majority of the value of exports of garments to
the US market.[8]
Economic growth
Over the next few decades, the apparel industry grew to represent Sri Lanka's
number one export. Following a 38% increase in textile-based revenue from 1996
to 1997, in which the industry generated $2.18 billion in earnings, 50 new textile
factories opened in Sri Lanka in 1998.[9] As of 1998, the Sri Lanka apparel industry
employed about 300,000 people in 800 factories. Sri Lanka nationals are primary
owners of 85% of the small-to-mid-sized factories, while larger operations are
typically joint ventures or foreign-owned.[9]
The end of Sri Lanka's civil war in 2009 relieved pressure on the country's garment
industry. After fighting ceased, Brandix, a garment manufacturer with 25,000
employees,[10] announced that its factory in Punani would double its exports.[11]
Later that year, Sri Lanka held its largest ever Design Festival, highlighting the
country's high-fashion merchandise, upcoming designers and advancing the
industry's desire to become known as a hub for design, as well as manufacturing.[1]
More exhibits followed once the Conference and Exhibition Management Services
began operating out of Sri Lanka in 2010. In doing so, the global company
announced three international textile exhibits in Sri Lanka, each to highlight a
different aspect of the local textile and apparel industry while allaying fears about
political instability and to show that Sri Lanka can compete with the EU market. [12]
As of the late 2000s (decade), the Sri Lankan textile industry contributes 39% to
the industrial production of the country and represents 43% of the country's total

exports. Since the 1970s, the industry has grown to become the country's largest
single source of export revenue.
Sri Lanka Customs
Sri Lanka Customs is a non-ministerial government department, which performs
the duties of collecting customs duties and other taxes and levies in Sri Lanka. It
comes under the purview of the Ministry of Finance. Head of the Sri Lanka
Customs is the Director General of Customs, Mr. Jagath P. Wijeweera.
The department works with the powers vested under the Customs Ordinance
(chapter 235). In addition to this it enacts several other related enactments. The
major functions of the department includes the collection of government revenue
as customs duty and other levies on behalf of several other government authorities,
safe guarding the country at the entry point. It has limited policing powers, such as
arresting suspects and confiscating contraband.
Formally known as HM Ceylon Customs from 1947 to 1972, the department can
trace its roots to 1806.[1] However the history of collection of customs duties in Sri
Lanka dates far back as 2nd century BC.