Major Economic Challenges During past 5 years

Presented By: Savneet Kaur

World Economic And Social survey

2007 Survey analyses the implications of ageing for social and economic development around the world. The ageing of the population offers both challenges and opportunities. Among the most pressing issues is the prospect of a smaller labor force having to support and increasingly larger older population. Paralleling increased longevity, changes in intergenerational relationships may affect the provision of care and income security for older persons particularly in developing countries where family transfers play a major role.

 2008
Survey offers a different perspective on economic insecurityone that utilizes more proactive and coherent policy responses, at both national and international levels, to help communities better manage economic risks, cope with economic insecurity and secure their livelihoods. 2009 Survey argues that mitigation and adaptation efforts can better move forward as part of a development strategy built around a massive investment-led transformation, along low-carbon, high-growth paths.

This transformation would keep temperature increases consistent with environmental stability, while fostering the strong growth and economic diversification necessary to allow convergence of incomes worldwide. 2010 Survey highlights the systemic weakness unmasked by the recent global crisis and proposes reforms in international arrangements to eliminate these deficiencies and gaps in global governance mechanisms. These weaknesses have unduly constricted national policy space and sustain the proliferation of conflicting international rules. The proposed reforms are aimed at ensuring consistency among national development efforts and global mechanisms in aid, trade and finance to pave the way towards more balanced and sustainable development.

Developing economy- Indian economy

The Economy of India is the ninth largest in the world by nominal GDP and the fourth largest by purchasing power parity. India recorded the highest growth rates in the mid-2000s, and is one of the fastest-growing economies in the world. India is the seventeenth largest exporter and eleventh largest importer in the world.

India's Per Capita Income has tripled from $ 423 in 200203 to $ 1219 in 201011, averaging 14.4% growth over these eight years. India has made huge progress in terms of increasing primary education attendance rate and expanding literacy to approximately threefourth of the population. India's literacy rate had grown from 52.2% in 1991 to 74.04% in 2011.

Problems faced by Indian economy

Inflation Fuelled by rising wages, property prices and food prices inflation in India is an increasing problem. Inflation is currently between 6-7%. Poor educational standards Although India has benefited from a high % of English speakers. There is still high levels of illiteracy amongst the population. It is worse in rural areas and amongst women. Over 50% of Indian women are illiterate.

 Poor infrastructure Many Indians lack basic amenities, lack access to running water. Indian public services are creaking under the strain of bureaucracy and inefficiency. Supply constraints and inefficiency are faced by the Indian economy. High levels of Debt Buoyed by a property boom the amount of lending in India has grown by 30% in the past years. Furthermore if inflation increases further it may force the RBI to increase interest rates. If interest rates rise substantially it will leave those indebted facing rising interest payments and potentially reducing consumer spending in the future.

 Inequality has risen rather than decreased However so far economic growth has been highly benefiting the skilled and wealthy disproportionately. Many of Indias rural poor are yet to receive any tangible benefit from the Indias economic growth. More than 78 million homes do not have electricity. 33% (268million) of the population live on less than $1 per day.

 2007 The total fiscal deficit of India (i.e. the combined deficits of the central and state governments) is estimated at around 5.6% in 2007-08. The estimated revenue deficit for 2007-08 was around Rs 634 billion, while the fiscal deficit was around Rs 1.44 trillion. Hence, the revenue deficit as a percentage of fiscal deficit is close to 50. In 2008, Threat of inflation was very real in India and all over the world. With the interest rates hardening, growth was already getting impacted.

 2008 Inflation continues to pose a threat. Inflation peaked at 12% in early August 08. Recession: Indias growth is not so dependent on growth in the West. However, the Indian stock markets have been hit by the global crisis. Indias growing service sector and manufacturing sector got adversely impacted by a global downturn. The Indian Rupee has had a surprisingly weak year. The Rupee has fallen from 39 to 44.

 2009 The weakest section of the economy was agriculture which showed growth of just 0.9% in the year 2009. The food price inflation, which has touched 15%. This food price inflation hits the poorest the hardest and threatens to widen the gulf of inequality that exists in India. Situation was controlled in this year.

 2010-2011 The total expenditure of the government has been reduced from 15.4% of GDP (2010-11) to 14% of GDP in 2011-12. The unemployment rate remains at a level of 8%. The Economic Survey 2010-11 says that continued high food inflation is a concern facing the Indian economy and the policy makers. The food-grain production in the country was 234.5 million tones in 2008-09 which declined to 218.1 million tones in 2009-10 and subsequently increased to 232.1 million tones in 2010-11.

Developed economy- America

2007 Energy and Environmental Security Conflict and Poverty Competing in a New Era of Globalization Global Imbalances Rise of New Powers Global Health Crisis

 2008/2009 Restoring financial stability Recession Exercising smart power Reimagining global trade Navigating Chinas rise

 2011 The United States is facing economic disaster on a scale few nations have ever experienced. They import much more than they export, and they are selling off our assets and taking on massive debts to sustain a standard of living they can no longer afford. They are failing even to acknowledge predatory foreign trade practices.

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