GENERAL
Item
- Title
- GENERAL
- extracted text
-
I9 Kfo 03
INDIA
RF_EC_6_SUDHA
The Times of India, Bangalore
d edmcfoion beyond reach for mwray
Times News Network
Mumbai: What does Rs 2 lakh me
an to an average household? It prob
ably takes care'of the family’s ann
ual expenses. Soon, it may only cov
er your daughter’s annual medical
college fees.
Thanks to a recent Supreme Cou
rt order granting considerable au
tonomy to private unaided colleges,
many medical, management and en
gineering colleges have started
working out new fee structures,
higher than the subsidised rates
currently charged.
Once these fee structures are inI troduced, higher education will vir
tually be out of reach of even mid
dle-class families.
The order says private education
al institutions which "are not de
pendent on the government’’ can de
cide their own fees. While institu
tions cannot indulge in profiteer
ing. they can generate a "reasonable
revenue surplus”, the SC said.
Intepreting the order to then- own
benefit, a clutch of private engi
neering colleges have decided upon
an annual fee of Rs 42,000, while
medical colleges are toying with the
idea of charging Rs 1.9 lakh.
Previously, private colleges fol
lowed two fee structures — the free
and payment seats. In engineering
colleges, the annual fee for free
Kerala HC 1 urns down
govt plea foi r 50% seats
Kochi: The Kerala High Court on
I Monday turned down the state
I government’s claim for 50 per
cent seats in the self-financing
medical colleges in the state, say
ing it was "wholly untenable” and
directed the government to com
plete admissions to 25 percent
seats allotted to it within a week.
Dismissing a petition by the
state seeking review of the Jan 20
judgement by which the bench
had restricted the government
quota in self-financing medical
colleges to 25 percent from 50 perj cent and temporarily fixed an an1 nual fee of Rs 1.5 lakh per student,
Chief Justice J.L. Gupta and JusI tice M. Ramachandran, held that
the government had failed to
point out any local needs which
] may justify its demand for 50 per! cent seats in the self-financing
medical colleges.
On the state's claim that the two
self-financing medical colleges
run by the Pushpagiri Medical So
ciety, Thiruvalla, and Malankara
Orthodox Syrian Christian Med- I
ical Mission, Kolencherry, had I
given merit a go by, the bench said
the allegation could not be sus- i
tained. The government had in its i
counter affidavit pointed out that ,
the two managements had paid
"scant” respect for merit in ad- I
missions made by them. Those '
who had secured as low as 8.95 j
percent marks and 19.01 percent j
had been admitted in the two col- I
leges, it had been pointed.
The bench also directed the I
state government to fill in the 25 |
percent seats allotted to it within i
a week, failing which the manage- ■
ments could admit students.
Earlier, the two self-financing
medical colleges had approached i
the court challenging the government”s claim for 50 percent seats,
following which the court had re
stricted the government quota to |
25 percent and raised the manage
ment quota to 75 percent. Chai- .
lenging this, the state had filed .
the review petition, pn
seats was around Rs 11,000 and for
payment seats, it was Rs 50,000. In
medical colleges, the free seats cost
Rs 30,000 while the payment seats
cost around Rs 6 lakhs.
There are not enough govern
ment-run institutions offering stu
dents higher education at a low cost,
academics point out. “With the gov
ernment following a policy of slow
ly easing out all subsidies from
higher education, economically
weaker families will be left in the
lurch,” says Tapati Mukhopadhyay,
member of Mumbai University's
senate.
tassmerct alleged
Chennai: Alleging they have been
“physically and mentally tortured”,
by the management of a self-financ
ing engineering college, at Pudur
near Tiruvailur district, its stu
dents on Monday held a demonstra
tion here demanding they be admit
ted in other engineering colleges.
The students of the Deen Dayal
College of Engineering alleged that
the management had been collect
ing excess fees from them and were
not allowing their parents to meet
them in the college hostels.
Complaits have been lodged with
the governor and the CM. An in
quiry conducted by the Anna Uni
versity is awaited, pn
Page 1 of 9^
PHM Secretariat
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Rajan M Alexander <rajanalex@now-india.net.in>
William Stanley <wstan@vsnl.com>; Vincent <peal@pronet.net.in>; Varughese Capital Deals
<capitaldeals@satyam.net.in>; Varkey Philip <varkeyphilip@satyam.net.in>; UNNIKRISHNAN PV
(Dr) <unnikru@yahoo.com>; Thomas Jayaraj > <sthomasjayaraj@yahoo.co.in>; Tasqeen M
<tasqeenm@hotmail.com>; Tara Srinivas <tarasri10@yahoo.com>; Suresh FL
<sureshfl@murugappa.co.in>; Sukhjinder Takhar <sukhjinder.takhar@bbc.co.uk>; Sudish B
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Friday, February 07, 2003 2:43 PM
WRAPUP6.doc
Dollar - Bear Market Delight!!
Dollar - Bear Market Delight!!
Campaign to Accelerate the Weakness of the US Economy
by Rajan Alexander
7th May 2003
Eiro-USD Cross Trade (%)
Last night's, US trading session
saw the Euro hit an a 4 year
high of $ 1.1440 against the
dollar before profit booking
forced it to close some level just
below.
Whenever
a
currency or stock
repeatedly hit a new high every day, it
is recognized as a clear indication of
strong bullishness. Conversely, if the
dollar is recording new lows every day,
it is a pointer of extreme weakness.
Such a weakness is broad based and
not necessarily Euro-specific. The
dollar’s hit a fresh five-year low against the Canadian dollar at C$1.4039, pushing the Canadian currency’s gains this year to more than 10
per cent. The Australian dollar rose to fresh three-year highs at US$0.6385 and the New Zealand dollar reached a five-year high at
US$0.5705. The Indian Rupee recorded a two-year high against the dollar, touching Rs 47.28 levels.
In the first two days of trading this week, the dollar lost 2.2% against the Euro and over 7% since the
outbreak of the war as depicted in the graph. As we forecasted in our earlier message Reality Check (22nd
April), the momentum in the slide of the dollar is accelerating. The Euro is expected to breakthrough the
$1.1500 levels by this week. This would translate a gain of 8% by the Euro over the dollar in 7 weeks or a
mind-boggling 60% return on an annualized scale. This is despite US Treasury Secretary, John Snow's
reiteration that the country will pursue its strong dollar policy.
Though the US Federal Bank has not said it so many words, it's because of a run on the dollar that prevents
them from taking the much-needed step of cutting interest rates. Yet, last night the US Federal Bank
expressed not only concern about the U.S. economy but signaled it may cut interest rates in the near future.
The announcement had an electrifying effect on the financial markets. Gold jumped to a two-month high while
oil prices held steady. What the US Federal Bank had warned was the prospertzor""unwelcome substantial
fall in inflation" (ostensibly due to energy prices falling). With prices of petraidum products falling, analysts
were predicting a much better GDP growth for the remaining quarters of thewear. What the US Federal Bank
was seemingly warning was just the opposite - the fall of inflation may reduce GDP growth.
TN
5/9/03
Page 2 of 9
The first quarter GDP growth for the US economy demonstrated a specter of "jobless growth". Registered
unemployment in the US crossed 6% equaling the level of 1994 where Bush Sr lost his bid for a second-term
in office after Gulf War 1991. Overall unemployment is even higher as a significant number do not bother to
register at the employment exchanges. US unemployment rate returned to an eight-year high in April, and
factory job losses were the worst in 15 months. Data flowing from the US suggests that business sentiment
remains depressed, investment weak and firms focused on cost cutting. Growth in consumer purchasing power
slowed to a crawl by the end of the first quarter.
Meanwhile, the gridlock related to Bush Jr's tax cut proposal continues and is expected to be resolved by the
end of the month. If Bush has his way, even partially, the US current account deficit will balloon to a historic
level, creating more downward pressure on the dollar.
Opinion polls have repeatedly pointed out that it is the well being of the economy that is to be the decisive
issue for the Presidential poll 2004 and not the wars of Afghanistan and Iraq. The majority of the US
population on this score rate Bush's performance very poorly. The economic situation in the country has begun
to hurt. If the US economy does not rebound strongly by the year-end, a regime change in Washington is a
distinct possibility. This is because by the time, the present trend of joblessness tapers off, even in the most
optimistic scenario in which the US economy rebounds by the year-end; unemployment rate is estimated to
touch around 7%. To make a significant dent, the US economy needs to do more than rebound. It has to do
so very strongly.
As things stand, the US economy, till recently the driver of the global economy, is sputtering in the investor's eyes, with uncertain growth
prospects. The widening U.S. current account deficit, which means more dollars leave U.S. financial markets than enter, only increases
the downward bias for the greenback's value. A further fall in rates would bode ill for the dollar as the euro has been drawing global
funds, largely at the expense of the U.S. currency, because of higher interest rates in the euro zone. The surging Euro is believed to
prompt the European Central Bank policymakers with a reason to leave interest rates steady at 2.50 percent at a meeting on Thursday as
it squeezes inflationary pressure out of the economy. Accordingly, analysts believe that the euro is within sight of its opening trade of
$1.1747 on Jan. 4, 1999, with little technical to hold it back. The question is whether this target will be reached by this weekend or the
next week.
As usual, the weekly wrap up of the financial market is attached. The following articles can be found below
this message:
- US Sees the Lights Go Out as States Scrimp and Save
- Expenses on Rise, Homeowner Burdens Get Heavier
- Mapping the Real Deal: The American Tapeworm
rajan alexander
development consultancy group,
43, da costa layout, ii cross,
st. mary's town,
bangalore 560 084, India
tel no: 0091-80-5479457
e-mail: rajanalex@now-india.net. in
US Sees the Lights Go Out as States Scrimp and Save
by Roland Watson in Washington
(http://www,commondreams,.org/_headllnes03/0424cQlJitm
Published on Thursday, April 24, 2003 by the Times/UK)
IN MISSOURI they are unscrewing every third light bulb. Prisons in Illinois are splitting prescription drugs in
half. The Governor of South Carolina is urging others to follow his practice of reusing Post-it notes and saving
5/9/03
Page 3 of 9
'paper clips.
Across the United States the worst budget crisis in half a century has forced states to scrimp for savings in a
style reminiscent of the Great Depression. Together, the 50 state governments are facing deficits of $30 billion
(#19 billion) this year and $82 billion next. Because all but Vermont are obliged by their own laws to balance
their budgets, they have to find $112 billion worth of savings in two years. California, which has the biggest
deficit, is about to run out of money.
Tax rises would help to meet some of the need, but in many states moves to increase taxes have been
defeated by legislatures or voters, leaving drastic cuts as the only way to make ends meet. 'The Big Turn Off'
in Missouri, which has dimmed electric light by a third in most government buildings, is typical of the
desperate scramble to save pennies. In Kentucky, every other ceiling light has been turned off in the State
Capitol.
The Kansas Governor has asked agencies to drop the gold-embossed state seal from stationery, saving 2c a
page. Agencies in Oregon are banned from color printing. Such measures, although eye-catching, are largely
symbolic, Scott Pattison, of the National Association of State Budget Officers, said. 'They demonstrate that
you are doing everything you can." They are also aimed chiefly at administrative agencies, or at areas of
spending where there are fewer votes, such as prisons. Jail chiefs in Illinois are trying to cut their prescription
drugs bill by ordering double
strength drugs and splitting them. In Virginia, prisoners are to receive only two meals a day at weekends.
Kentucky has chosen an alternative route, releasing prisoners early.
The sums involved make it impossible, however, for state governments to confine their cuts to politically
marginal areas. In Oklahoma, teachers are mopping floors, driving school buses and cooking meals because
support staff have been laid off. In Oregon, teachers worked for two weeks without pay to keep schools open.
School districts in some parts of Colorado are operating four-day weeks. In Idaho, towns have held cake sales
to keep teachers on staff. Across the country, tens of thousands of poorer families are losing access to
healthcare as capitals cut back on the Medicaid program. In Texas, 275,000 fewer children will receive
healthcare.
California, which faces a $30-billion deficit, 30 per cent of its budget, will have to start writing lOUs by the
summer unless it finds a way of raising money. Alaska and Oregon face even bigger deficits as a proportion of
their budget. Nevada, New York, Arizona, New Jersey and Texas all
face deficits of between 15 and 20 per cent of their budgets The turmoil has yet to threaten President Bush.
The White House has tried to keep the issue at arm's length, refusing to bail out states and telling them it is
their problem. Mr Pattison said that voters tended to take their wrath out on state legislators rather than
presidents for local problems.
Mr Bush travels to Ohio today to bang the drum for his economic priority, his endangered package of federal
tax cuts. The state demonstrates how state budget deficits could yet hurt him. Ohio is planning to cut 50,000
people from health coverage, the largest such cut yet.
If voters go into the presidential election year in 2004 with their education and healthcare systems in chaos, it
may present Democrats with an opening. Mr Bush contends that a recession that began before he came to
office, coupled with war, is behind the financial straits of states,
as well as of the economy as a whole. States, too, share some of the blame for gorging on the 1990s boom
with little regard to possible perils ahead. They cut taxes, increased spending and put some aside in reserves.
But it was not nearly enough.
"States are really hurting," Mr Pattison said. "It is particularly bad because in the past they have relied on
rainy-day funds to cushion the pain. Now it is nothing but painful cuts."
Copyright 2003 Times Newspapers Ltd
Peace Newsgroup George Skuse <skuse@paradise.net.nz>
Expenses on Rise, Homeowner Burdens Get Heavier
5/9/03
Untitled
Pageg4 2>F©2
Organization.
Mon May 5, 2003 02:33 PM ET
By Aleksandrs Rozens
http://www.reuters.com/newsArticle.jhtml;jsessionid=GJ245LRZCPTLACRBAEKSFEY?type=reutersEdge8iStoryID=2684894
NEW YORK (Reuters) - Credit cards with double-digit interest rates have eaten away at Linda Schrock's savings, making it tough for the
Appomattox, Virginia, lab technician and her husband to make timely mortgage payments.
These hefty costs come at a time when the Schrocks -- and many other Americans - are faced with rising costs for the unavoidable that
come with home ownership, like real estate taxes, insurance and energy.
"The costs go up. There is never enough money. You have these insane credit cards you can’t get paid off," she said. "You do without
stuff if it comes to paying for your home. You're going to make a house payment."
While many homeowners think housing affordability is all about the impact of interest rates on the monthly mortgage payment, mortgage
rates are not the only consideration.
"Recent indications that insurance rates are going up, combined with the likelihood the fiscal difficulties of state and local governments
will lead them to raise property taxes, will also affect the ability of borrowers to acquire mortgages or meet their current mortgage
obligations," said Douglas Duncan, chief economist at the Mortgage Bankers Association of America, an industry trade group.
"For those stretched to make mortgage payments, we could see a rise in delinquencies," he said. Duncan predicts "it will take a while to
feed through, maybe later in the year, or early next year."
State and local governments, hit hard by the economic slump, are boosting taxes to close huge budget gaps.
CARD AND AUTO DEBT-TEA LEAVES?
Signs of trouble for homeowners may already be brewing.
Usually, late payments on mortgage debt are preceded by late payments on credit cards and auto loans. After all, few people want to lose
the roof over their head.
"It is cards first, cars second and then the home," said Chris Viale, of Cambridge Credit, a firm that helps consumers work out their debt
problems. But, he noted, "Sometimes, they'll let the home go before they adjust what they pay for cable TV."
Viale has recommended his clients take any tax refunds they get and pay off debt, beginning with credit cards.
The rise in late credit card payments has already been spotted.
In March, the American Bankers Association said fourth-quarter 2002 credit card delinquencies shot to highs not seen since the group
began tracking payment behavior 13 years ago.
Much of that rise in delinquencies was tied to a sluggish employment market, which has worsened since March. Last week, the U.S.
government said the nation's jobless rate rose to 6 percent in April.
At the same time, Moody's credit rating agency reported that auto loan delinquencies were on the rise and the MBA reported homes in
foreclosure in the final quarter of 2002 zipped to record highs.
These signs all point to tough going for homeowners.
"With the increase in real estate taxes, they’ll be caught by surprise," said Viale.
Mapping the Real Deal: The American Tapeworm
http://www.scoop.co.nz/mason/stories/HL0304/S00228.htm#a
By Catherine Austin Fitts
http://www.campusvirtualsp.org/eng/noticia2_eng.html
"And the serpent's food shall be earth"
— Isaiah 65:25
See also Part 2...Mapping The Real Deal: The Solari Solution
The other day, a natural healing practitioner explained the strategy used by a tapeworm to"' prosper. A
tapeworm, she said, injected a chemical into its host that triggered a craving by the host for w^at y]e
tapeworm wished for its dinner. By managing it's hosts desire, a tapeworm manipulated its host to se/ aslde
self-interest and please its parasite. And so the tapeworm proceeded to consume its host's energy and het,
with the host doing most of the work.
,
The story of how a tapeworm parasitically eats away at its ecosystem came at a moment when the math lover
in me was having an adverse reaction to the description of America as the new Roman Empire that seems to
be inspired by the recent occupation of Iraq. The investment economics of American imperial conquest work
more along the lines of the tapeworm than of the Romans.
If my rudimentary understanding of the rise and fall of ancient empires is useful, the Roman Empire brought
an advancement of science, infrastructure, technology and material progress to many of the poorer lands that
it conquered. In essence, Rome's territory grew in part from its ability to increase the 'return on investment"
of many of the places it conquered.
While those who believe in self-determination may not approve of the Romans right to do so, or their
methods, those of us who appreciate roads, bridges and infrastructure understand the positive investment
yields that the introduction of intellectual capital to a place can generate. From one point of view, Rome
financed its conquests not just by ransacking them — but by making places smarter in the material sense.
The tapeworm -- a parasite that over time eats its host —can more accurately describe the demonic patterns
of stripping places of intellectual capital that come with American imperial conquest. The "dumbing down" so
often complained about within America's borders is a phenomenon that our military appears to be
implementing globally. We seem intent on removing spiritual power and intellectual IQ as we depopulate
globally, moving out the honest and competent and putting the corrupt and bureaucratic in charge.
One of the things that is most disturbing about the American tapeworm is that it has organized its leadership
around private banks and defense contractors and its governance and intellectual air cover around think tanks
and private universities and their tax-exempt endowments.
In so doing it has done a marvelous job of getting the intellectual resources of the nation disengaged from
dealing with what is happening and engaged -if not financially dependent on— producing chemicals for
injection into the body politic through a highly centralized corporate media that will feed the tapeworm's
desire.
The Harvard Watch reports description of Harvard academics creating the public policy justifications for
Enron's frauds while the Harvard endowment fed at the trough illuminated a perfect example of how the
tapeworm gets the host to act against its own self-interest.
The "Break It-Fix It" Subsidy of a Negative Return on Investment Economy
For several years, I have been studying and writing on the corporate and banking economic warfare model of
globalization. Just from a case study of one private investor, Pug Winokur, and his investments in and with
DynCorp, Enron and Harvard, examples abound.
- US neighborhoods are overrun with narcotics trafficking and HUD financial fraud while systematically worked
by enforcement, seizure and War on Drugs teams supported by DynCorp and generating profits for the
Harvard Endowment;
- Latin American pipelines, water and other assets are sold for significant discounts to market value to Enron
and other multinational investors while DynCorp helps War on Drugs military teams move peasants off the
lands;
Page 6 of 9
- Russian banks and pension funds are emptied out by organized crime and laundered through NY Fed
member banks while Harvard as financial advisor helps privatize Russian oil companies over to their
endowment investment network;
- DynCorp personnel supplying police and aircraft maintenance are active with local mafia in Eastern Europe
and practice buying and selling children as slaves which they use for sex;
- $3.3 trillion is missing from the Department of Defense and the Department of Housing Development where
Lockheed, DynCorp & AMS are active managing computer systems and Harvard supplies appointees and
contract services.
- Manipulation of the gold markets by the US Treasury and NY Fed member banks are led by Larry Summers,
Secretary of the Treasury, and now President of Harvard and his predecessor Robert Rubin, Secretary of
Treasury, and now member of the Harvard Corporation Board.
These shenanigans are well documented by a series of courageous reporters and market commentators,
including Anne Williamson, Greg Palast, Kelly O'Meara, William Murphy and Chris Sanders.
This tapeworm operates globally. It has been winning at economic warfare because those opposed to it
cannot see it clearly and are not yet networked globally to move people, places and capital out of its reach.
My pastor, Bishop Alfred Owens, says, "If we can face it, God can fix it." Indeed, divine authority is
hamstrung- waiting for the necessary global networks to align around a common map of the real deal about
global consolidation of economic and political power — and the resulting liquidation of wealth.
This tapeworm is managed tightly by the cartels that syndicate around central banking and warfare and it has
four phases:
- Phase One-Break It: Private syndicates make money destroying a place through organized crime, covert
operations, warfare or a variety of both;
- Phase Two- Buy It: The profit generated from breaking it is used to buy or seize "legal control" at a discount;
- Phase Three- Fix It: Government funding, credit and subsidies are then used to "fix it" while harvesting
remaining assets, including with narcotics trafficking, sex slavery and any other form of liquidating the human,
intellectual, environmental and physical capital in a place:
- Phase Four—Declare Victory: Victory is then declared and a flow of foundation and academic grants funded
by the "break it-fix it" profits generate awards, photo opportunities and official archives and documentations
for the perpetrators to be admired for their bringing of advanced civilization to the natives.
What emerges from an investment banker's analysis of billions of transactions involved in situation after
situation, in place after place, in year after year, is surprisingly simple.
We are watching a global first world economy that has a negative return on investment.
For example, in 1997 I lead an analysis of US federal expenditures and credit activities in the Philadelphia area
for a group of US pension fund leaders. After analysis of the detailed data resulting from $10 billion of
government reengineering and $400 billion of federal credit portfolio strategy managed by my company, the
evidence was overwhelming —the federal investment in Philadelphia had a negative return on investment. In
short, government budgets were rigging profits and income for companies and people in the area. After each
year of government investment, Philadelphia spent more time doing things that were fundamentally not
productive and so had been paid to grow "stupider."
The deterioration in environment, culture, infrastructure and quality of life in Philadelphia that was obvious
from walking around the city matched the numbers rather than the spin in the corporate news that the
economy was doing well. Equity yields were falling steadily and only cooked government and corporate books
5/9/03
Page 7 of 9
'could make it look otherwise. The primary thing on the rise was the smugness of the leaders of Philadelphia
institutions as their success at covert management and personal "personnel benefits" grew ever stronger.
The Giant Sucking Sound as the Tapeworm Consumes Global Capital
Another way of saying this is that the banking and corporate model as currently constituted does not work.
Banks and corporations are entirely dependent on rigged government budgets, government contracts, federal
credit arbitrage and corrupt regulation in way that generates a negative return on investment for taxpayers. In
addition, as corporations and banks become dependent on such government intervention they become
progressively less able to function in a free market. Their culture becomes progressively soviet.
The combination of negative returns to taxpayers and increasingly non-market worthy private organizations is
steadily lowering productivity. Add to this the increasingly power of organized crime as a % of GNP and a
determinant of who sits in power on Wall Street and Washington, and fundamental productivity does not have
a chance.
This state of affairs can go on as long as it can be financed. Hence, as long as America can continue to export
dollars, export Treasury bills and mortgage backed and other federally supported credit, and lead in global
organized crime and warfare, a negative return economy can continue.
Another way to say this is that rather than let markets adjust in a manner that would hold banks and
corporations accountable, the central banks and military and enforcement machinery will guarantee markets
by offsetting ever less productivity with ever greater amounts of debt and the liquidation of planetary assets people, places, and all living things.
Which leads us to Iraq.
The Tapeworm Ransacking of Iraq
The economic desperation that lead up to the invasion of Iraq has been eloquently described by Chris Sanders
of Sanders Research Associates and fits the patterns that SRA colleague, John Laughland and his colleagues at
the British Helskinki Human Rights Group, have documented in Eastern Europe. Assuming the patterns that we
have seen throughout the world apply, that tapeworm's economic desperation will feed on Iraq as follows:
- The first meal to be harvested on Iraq is the profits of invasion — from government contracts and arms
trafficking to media coverage.
- The second meal to be harvested on Iraq is the resulting control of assets, including gold, oil, bank accounts
and antiquities. Iraq will be stripped, shipped, or otherwise switched to new ownership. Occupiers will use
Iraqi assets to leverage more debt that generates more contracts and business for the inside companies. The
antiquities in Iraq and this area of the world have a special meaning and attraction for the American and
British leadership networks so don't underestimate the value of these. The gold bugs at LeMetropole Caf?
reported that the Americans have captured $1 billion of gold which was quite relevant as the NY Fed Banks
particularly JP Morgan, Goldman, Citibank, are running significant short positions to suppress the gold price.
Such a replenishment of their stocks (or the US Treasury who they may be trading on the account of -- they
usually simply move the shorts over to the taxpayers on all these types of situations) will be quite refreshing.
- The third meal on Iraq to be harvested will be occupation management. If Eastern Europe is representative,
America will partner with local and global organized crime and other intelligence agencies to significantly
increase organized crime profits from the place. Attractive children will be culled from the population for
shipment to Europe and other areas for sex slavery and pedophilia. Narcotics trafficking will increase as it has
in Afghanistan. The award to CSC DynCorp of a $500 million sole source contract to run police, courts and
judiciary in Iraq is an important signal. My question after years of research is whether CSC DynCorp's core
competencies relates to enforcement infrastructure designed for places with growing financial fraud, narcotics
trafficking, sex slavery and control of leadership through "control files." These are the talents that America
needs to strip mine the assets to feed its economic desperation.
5/9/03
Page 8 of 9
■- The fourth meal to be harvested on Iraq will be fixing it and declaring victory. This will involve significant
government contracts to bring Western Civilization as defined by building those things that ensure the assets
that the private corporations and investors have now acquired have the largest increase in value at no
expense to themselves. A careful analysis will show expenditure rations in the soviet style—that is we will
spend much more than necessary to get anything done. The banks will acquire an entirely new market. Critical
to the fixing it phase is the financing of the occupation with the requirement that Iraq use the US dollar. We
will print dollars and the Iraqi's will use them. This is free financing for us. Next will come the payback for the
not for profit groups. Because Christianity is an essential political support base for legitimizing the de
population of the Moslem territories, a flow of resources to the right church groups to support an expansion of
their missionary ministries is likely. Progressive groups will bid for contracts to bring the rule of law and
economic development and things like "the rights of women." There will be a flow of money from foundations
and universities to study how to help Iraq and to justify what we are doing.
As the corporations and banks are digesting Iraq, the American tapeworm will be setting its sights for the next
meal. The money will be flowing to the right think tanks, academia and media apparatus for the preparation of
the next injection into the body politic.
The lethal combination of a debt based financial system, falling productivity and the absence of meaningful
feedback systems means that the magic of compound interest will dictate that the American tapeworm's
hunger for more capital is accelerating.
Where is the Tapeworm's Brain?
The great mystery in all of this is who is really in charge. On one hand, we are watching an official action of
the American governmental apparatus. On the other hand, the private companies and banks that operate the
apparatus accounts and systems and finance its ever-growing debts now run that governmental apparatus.
The investors behind these entities are global, not American. This is not a picture of a sovereign government
or leaders loyal to the American people. A review of global insurance risk positions, debt and capital markets
would show more about who is managing what than American politics. Indeed, Greg Palast of the BBC has
proved beyond a shadow of a doubt that Bush lost the election - something of no practical consequence
thanks to the Supreme Court and the corporate media.
The tapeworm is in control and eating into the people of America as it is eating into the people of Iraq.
Federal accounts are missing $3.3 trillion, pension funds have been stripped by pump and dump stock fraud
and neighborhoods are overrun with narcotics trafficking. There are increasingly numbers of American citizens
who have more in common with the people of Iraq than with the leadership of Wall Street and Washington.
With the takeover of American digital data by defense contractors and banks managing governmental
functions, economic warfare takes on a whole new meaning. What is supposed to be private is not as those in
the know have total access. What is supposed to be transparent is private, except for those in the know who
are free to use it to advantage. With total defense contractor information awareness, people can be adjusted
to ensure that markets do not have to adjust.
The American tapeworm is a symptom that the central banking-warfare model that has created the supremacy
of the English-speaking people since the time of Queen Elizabeth I is dying. It is dying not because it is wrong
but because it is weak. It is dying because — like a tapeworm - it has begun to create a rapidly weaker
system. Hence it is incumbent upon the English-speaking people to reinvent themselves by engaging globally
to invent a new model.
Yet, the opportunity to move to a new model requires the ability to see where we are and to outline a vision
to those in the system that there is hope. Doing so becomes progressively more important as who is in charge
is less important than how many of us are dependent for our bread and butter on a negative return on
investment economy as it tapeworms its way towards planetary extinction — and all of us with it.
In short, the primary problem is not that the folks in charge are centralizing wealth in a destructive way or
that some have too much money. That's a problem - but a secondary one. The problem is that from the point
of view of the dolphins, the plants and the trees, the planet is worse off for the presence of humans.
5/9/03
Page 9 of 9
All solutions are found when we realize that this is something you and I can correct without wasting more time
trying to find someone in charge of the tapeworm to persuade them to change its ways. It can't change — its
too busy finding food to feed all of us.
Harvard Watch:
http://www.harvardwatch.org
Catherine Austin Fitts is the President of Solari, Inc.( http://www.solari.com), a founding member of
UnAnsweredQuestions.org ( http://www.unansweredquestions.org) and member of the Advisory Board of
Sanders Research Associates ( http://www.sandersresearch.com). Ms. Fitts is former Assistant Secretary of
Housing-Federal Housing Commissioner in Bush I and a former managing director and member of the board of
directors of Dillon Read & Co. Inc. She is currently litigating with Ervin and Associates (acting on behalf of the
US government) and the Department of Housing and Urban Development related to John Ervin's efforts to
stop responsible financial management in the US government mortgage insurance portfolios. To support
Catherine's litigation efforts: http://www.solari.com/vote.php . Ten percent of all donations are tithed to an
Independent Media Fund managed by Venture Collective.
If this "Mapping the Real Deal" was useful for you, you can leave comments and send a gift to Catherine
Austin Fitts and Scoop Media through Affero: http://www.affero.net/pngs/rd.png and receive future columns
for free by e-mail - see... Free My Scoop to sign up.
Anti©opyright Catherine Austin Fitts - April 2003
5/9/03
WRAP-UP OF FINANCIAL MARKETS: 21 March to 3rd May
Campaign to Accelerate the Weakness of the US Economy
by Rajan Alexander
7th <May 2003
The table as provided below sums up the financial market performance for the week ending OSOS-OS. The closings for week ending 21-03-04 are also provided, as a benchmark as it
corresponds to the enthusiastic response of the market when war broke out. Stock markets
indicate short-term uptrend, though new technology (Nasdaq) appears to be stronger than the
old economy (Dow). Gold continues to firm up is an indication than the rally in the stock market
is unsustainable. Crude, though losing nearly 8% has not plunged as expected. The dollar lost
5% to the Euro.
Indicators
Week Ending
21-03-04
Week Ending
03-05-04
Change
+
Change
Dow Jones Index
Nasdaq Index
Gold $ (Bid)
Brent Oil (US$ Barrel)
Euro/US$ (Sell)
8521.97
1421.84
326.25
26.39
1.0658
8582.68
1502.88
340.70
24.36
1.1191
+60.71
+ 81.04
+ 14.45
-2.03
+ 0.0533
+0.7
+5.7
+4.4
-7.7
+5.0
°/o
Stock Markets
Dow Jones Ind Av
The Dow has hit a 6-week high.
Though the short-term trend is
clearly on the upswing, the
medium
trend
is strongly
bearish. The rally is sustainable
only if the Dow breaks through
the 9000-resistance barrier.
This is highly unlikely and we
should anytime see the Dow go
21/03 28/03 04/04 11/04 19/04 26/04
3/5
on the downswing as a short
Week Ending
term trend. Poor volumes
accompanying the last 3-week
rally and evidence of investors
increasingly preferring the safe havens like gold, bond market support lead to such a conclusion.
We repeat we see the trend as a classical traders' bear market rally that will run out of steam this
month.
Gold
It is significant that the end of
the war has not reduced
economic uncertainties in the
mind of investors and in fact,
the search for safe havens are
increasingly.
This trend is characterized in
the firming of gold prices. The
yellow
metal
prices
will
hardened
even
more
pronouncedly as and when the
current stock market rally runs
out of steam and heads southwards.
Crude Oil
The weekly close superimposing
on
the
6-week
trendline
indicates that crude oil will
probably move around the
current levels till a trigger
appears for prices to breakout
upwards. The trigger could be
the June second week's meeting
where OPEC is expected to
announce further production
cuts.
Though crude prices have not fallen to below USD 18<abarrel as per pre-war expectations, the
devaluation of the dollar implies that revenue earnings of oil producing countries have fallen
much more in real terms than indicated by current prices. This would contribute to additional
pressure on OPEC to continue to denominate crude oil sales in dollars.
Currency
The bullishness of the Euro
against the dollar is evident from
the trendline. The weekly close
above the trendline indicates
continued upswing in the Euro's
fortunes. The Euro hit a high of
$1.1287 before closing the week
at $1.1191. This is new all time
high for the Euro. The next
near-term objective for the Euro
is $ 1.5000 against the dollar.
Code No.| Illi
Serial No. I I I I ~l
COMMUNITY HEALTH CELL
SOCIO-DEMOGRAPHIC SURVEY OF SLUMS COVERED UNDER CHATA PROGRAMME
Date :
Name of Inverviewer
Sudama Nagar [T]
I.
Slum
II.
a) Name of the respondent
b)
Relationship of respondent to HOH
c)
No. of years residing in this slum
e) Rented
Own |
2. House No
Q
Ul
yrs
Victoria Layout [3
Ragigudda [3]
I I
d
d) Type of House a) PuccaQ b) Semi-pacca Q c) Kutcha Q
Others Q
( Govt) Street
( CHATA study)
House No
III.
|
Rajendra Nagar [2
Demograpic Data
SI. No.
Name
RHF Age Sex
Education
Occupation
Income Weekly/ Any Chronic
Monthly
Diseases
Remarks
Chronic disease
(1) High Blood Pressure (hypertension), (2) Diabetes, (3) Heart problem, (4) Disc problems, (5) Migraine (Recurrent Headaches), (6) Store (Cerebral Bleeding),
(7) Depression or Anxiety, (8) Sleep problems, (9) Hearing problems, (10) Vision problems, (11) Gastritis or Ulcer, (12) Stress (13) any other (specify)
IV.
HOUSE HOLD INCOME :
Who is the main Income Provider to the family
Relationship to HOH
Name
V.
|
Salaried |
|
a)
Occupation of main Income Provider
b)
On an average how many days of work you (main income provider) would get in a month ?
c)
Income per week Rs------------------------------------------------------ per month. Rs
d)
Are you part of any savings scheme Yes / No.
Daily Wages |
If yes Bank
P.O.
SHG
Others
Does any member of your family consume alcohol? If[ye^ , use the next schedule. If [ho], conclude the interview.
Who drinks quote SI. No. |
From Q III:
[
j
j
Economic Intelligence Service
Basic Statistics Relating to
the Indian Economy
August 1994
library
INDIAN SOCIAL INSTITUTE
24, BENSON ROAD,
BENSON TOWN
BANGALORE-560 046.
CMIE
Centre For Monitoring Indian Economy Pvt.Ltd.
110-120 Kaliandas Udyog Bhavan.Near Prabhadevi P. 0., Bombay 400 025
Table 2.9
Faculty-wise Enrollment of Students at University Level
1960-61
1970-71
1980-81
1985-86
1986-87
1987-88
1988-89
1989-90
1990-91
Thousand 'Numbers
Humanities
487
1,457
1,913
1,728
1,783
1,846
1,911
2,044
2,124
Arts incl. oriental
Education
449
15
23
1,330
57
70
1,114
71
174
1,439
82
207
1,484
85
214
1,537
88
221
1,591
91
229
1717
96
231
1789
100
235
Law
Commerce
102
344
554
768
792
820
849
932
972
Science & Technology
381
1,185
820
1,054
1,085
1,125
1,164
1,241
1,294
Science
Engineering/Technology
Medicine
Agriculture
Veterinary Science
300
36
27
13
5
948
90
98
43
6
534
129
110
39
8
704
164
129
46
II
725
169
132
48
11
751
176
137
50
11
778
181
142
51
12
834
209
142
45
11
869
217
150
47
11
Others
30
15
19
21
22
23
24
37
37
Total
1,000
3,001
3,306
3,571
3,682
3,814
3,948
4,254
4,427
Percentage Distribution
Humanities
48.7
48.6
49.4
48.4
48.4
48.4
48.4
48.0
48.0
Arts incl. oriental
Education
Law
44.9
44.3
40.3
6.3
2.3
5.8
40.3
2.3
5.8
40.3
2.3
5.8
40.4
1.9
2.4
40.3
2.3
5.8
40.4
1.5
2.3
40.5
2.6
2.3
5.4
2.3
5.3
Commerce
10.2
11.5
20.1
21.5
21.5
21.5
21.5
21.9
22.0
29.5
29.5
29.2
29.2
19.7
4.6
3.6
1.3
0.3
19.7
4.6
3.6
1.3
0.3
19.6
4.9
3.3
1.1
0.3
19.6
4.9
3.4
1.1
0.2
Science & Technology
Science
Engincering/Technol.
Medicine
Agriculture
Veterinary Science
Others
Total
38.1
30.0
3.6
2.7
1.3
0.5
39.4
29.8
29.5
29.5
31.6
3.0
3.2
1.4
0.2
19.4
4.7
4.0
1.4
0.3
19.7
4.6
3.6
1.3
0.3
19.7
4.6
3.6
1.3
0.3
3.0
0.5
0.7
0.6
0.6
0.6
0.6
0.9
0.8
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
C“tre fOr Monitoring Indian Economy
Basic Statistics: India, August 1994
Estimates of Population (’000) Indi a, States and
Union Territories As on 1st March, 1971. 1981.& 2001
States and Union
Territories
1.
/.
2.
3.
4.
5.
6.
7.
^8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
4°,:
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
1971
India
Andhra Pradesh
Assam
Bihar
Gujarat
Haryana
Himachal Pradesh
Jammu & Kashmir
Karnataka
Kerala
Madhya Pradesh
Maharashtra
Manipur
5,47,137
43,432
14,589
56,260
26,639
10,013
3,454
4,6o6
29,245
21
5
41,566
50,309
1,070
Meghalaya
Nagaland
Orissa
Punjab
Rajasthan
Sikkim
Tamilntdu
Tripura
Uttar Pradesh
Test Bengal
'
88,205
44,223
115
466
256
74
4,051
856
32
332
Andaman & Nicobar
Arunachal Pradesh
Chandigarh
Dadra & Nag ar Haveli
Delhi
Goa, Daman & Diu
Lakshadweep
Misoram
Pondicherry
Source
:
1,009
515
21,915
13,528
25,712
209
41, 128
1,552
471
1981
6, 85,159
53,550
19,897
69,915
34,086
12,922
4,281
5,961
37,136
25, 454
52,179
62,784
1,421
1,336
775
26,370
16,789
34,262
316
48,408
2, 053
1, 10,862
54,581
189
632
451
104
6,220
1,087
40
494
604
ISHA
10
2001
1,074,503
83,821
36,039
107,969
55,802
21,520
6,576
9,984
59,879
86,332
32,222
97,785
2,505
2,341
1,755
38,163
25,064
60,834
723
67,061
3,592
1,75,111
83,139
510
1, 162
1,399
205
14,663
1,752
63
1,093
993
Registrar General of India.
(J&Jltk fOcmwtOe* aju>d ''Ptejee&d Kecyu*
cii f’..Ttj •■■-;
7oM« Ale 4 <
../I
. .?*>
TABLE NO; 2
ESTIMATED PROJECTED POPULATION AND MANPOWER REQUIREMENTS(MAJOR CATEGORIES)
Category
Rat io
1. Populat ton
1 — 1 — 1981
685m
7-7-7997
1-1-2001
1-1-2021
875m
1,120 m
1,680 m
(2,5% growth)(2,5% growth) ( 2.5^)growth)
2. Doctors
Present:1:5000
populatton
required:1;2000
(1991)
(2 OOPj :1:1500
(2021) :1:1p00
2, 27, 000
4,57, 000
(1:2000)
7,46,600
(1:1500)
1,68, 0000
(1:1000)
3. Nursing
5:1
1,50, 000
4,57, 000
(1:2000)
7,46,6G0'
(1:1500)
1,680, 000
(1:1000)
4. Dentists
1:25, 000
15,COO
40, 000
41,200
1,75, 556
1,92,696
(1:2000)
2,48,800
(1:1500)
2, 11, 000
(1:2000)
5,60, 000
(1:1000)
5. Pharmacists
1,72,000
(1988)
ISHA
TABLE No: 4
7J
Number of Doctors Registered Possessing Recognised Medical
Qualifications (Under IMC Act) With State Medical Councils
During 1984 To 1987
si.
Name of State Medical Council
1984
1985
1986
1987
17,10€
No.
1.
Andhra Medical Council
15,373
15,990
16,516
2.
Assam Medical Council
8,279
8,640
8,912
9,141
3.
Gujarat Medical Council
16,955
17,669
18,417
19, 171
-4.
Bihar Medical Council
21,621
22,217
22,902
23,450
5.
Jammu & Kashmir Medical Council
3, 103
3,289
3,442
3,621
6.
Karnataka Medical Council
23,470
24, 490
25,518
26, 722
7.
Bhopal Medical Council
6,473
7,141
7, 867
8,526
8.
Maharashtra Medical Council
35,585
37,394
39,397
41,035
9.
Orissa Medical Council
8, 831
9,378
9, 478
9, 866
10.
Punjab Medical Council
23,096
23,632
24,128
24,615
77.
Rajasthan Medical Council
10,065
10,501
11,059
11,613
12.
Tamil Nadu Medical Council
35,644
36,860
38,673
40,023
13.
Uttar Pradesh Medical Council
26,613
27,584
28,514
29,376
14.
West Bengal Medical Council
35,986
37,005
37, 751
38,738
15.
Travancore Medical Council
(Cochin)
13,644
14,208
14,900
15,568
16.
Hyderabad Medical Council
11,091
11,504
11,780
12,153
17.
Haryana Medical Council
N.A.
N.A.
N.A.
Total ..
_M <1/
NA. Not Available.
Source :
2,95, 829
3, 07,502 3, 19,254
'
3,30,755
5^
5ft
Medical Council of India, Health Information India - 1988,
Ministry of Health and Family Welfare, Neto Delhi,
TABLE No: 5
Doctor (Allopathic) Population Ratto tn Different
In States/U.Ts
SI.
No.
State/Union Territory
1.
2.
9.
10.
11.
12.
Andhra Pradesh
A & N Islands
Arunachal Pradesh
Assam
Bihar
Chandigarh
Dadra & Nagar Haveli
Delhi
Goaj. Daman,& Diu
Gujarat
Haryana
Himachal Pradesh
15.
14.
Jammu & Kashmir
Karnataka
15.
16.
Kerala
Lakshadweep
Madhya Pradesh
Maharashtra
Mani pur
Meghalaya
Misoram
Orissa
Nagaland
Pondicherry
Punjab
Rajasthan
Sikkim
Tamil Nadu
Tri pur a
Uttar Pradesh
West Bengal
5.
4.
5.
0o
7.
8.
17.
18.
19.
20.
21.
22.
25.
24.
25.
26.
27.
28.
29.
50.
51.
Source :
Doctor’s
Population
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
12557
2896
2841
11879
4746
1151
5184
1800
1014
2605
6151
7514
6996
9770
2491
5095
11546
2045
5465
6422
7175
9577
5425
2472
5705
10657
5115
5115
5745
16677
2256
ISHA
14 :
Year
Related to
5 - 82
6 - 81
12 - 81
1 - 79
1 - 78
1 - 79
6 - 82
—
6 - 82
1 - 78
6 - 82
1 - 79
1 - 79
1 - 79
1 - 79
6 - 82
1 - 78
4 - 82
12 - 80
1 - 79
12 - 81
1 - 78
1 - 79
6 - 82
6 - 82
5 - 82
1 - 79
1 - 79
6 - 80
1 - 79
12 - 81
Report of the Working Group on Medical Education,
Training and Manpower Planning. C y&c-'
TABLE No: 6
Table Showing Population, Number of Doctors and
Doctor Population Ratios in Various States
SI.
No.
States and Union Territories
Populatton
in Lakhs as
on 1-3—81
7.
2.
Andhra Pradesh
Assam
Bihar
Gujarat
Haryana
534.0
199.0
698.2
359.6
128.5
42.4
59.8
5.
4.
5.
6.
7.
8.
No. of
Doctors
4196*
1518*
13436
11769
1990
Himachal Pradesh
535*
Jammu & Kashmir
800*
Karnataka
370.4
3791
2562*
254.0
9. Kerala
10. Madhya Pradesh
521.4
4251*
11. Mahar ashtra
37972
627v0
12. Orissa
2860
262.7
13. Pun Jab
8809
166.7
14. Rajasthan
341.0
3531
5810*
483.0
15. Tamilnadu
16. Uttar Pradesh
6046*
1108.6
17. West Bengal
28743
544.9
18. Delhi
NA
62.0
19. Goa, Daman & Diu
10.8
999
20. Pondicherry
206
6.1
21. Arunachala Pradesh
182
6.3
22. Manipur
414
14.3
218
23. Meghalaya
13.3
24. Mizoram
83+
4.9
182
25. Nagaland
7.7
26. Sikkim
78
3.2
27. Tripura
348
20.6
28. A & N Islands
65
1.9
358*
29. Chandigarh
4.5
30. Dadra & Nagar Haveli
1.0
19
31. _ Lakshadweep
0.4
13
+ Included tn Assam,
* Non-Govt. Doctors not included
Source : Health Statistics of India.
Doctor
Population
Ratio
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
i
1
1
1
1
1
1
1
1
1
12124
11879
4746
2603
6183
7514
6996
9770
10018
11546
1557
9344
1802
9656
8075
16677
1760
NA
1140
2806
3231
3466
5959
3846
3115
5851
1528
1131
4632
2692
A Supplement to the ICSSR/BCMR Report
Health for All:
An Alternative Strategy
Produced by
THE FOUNDATION FOR RESEARCH
IN COMMUNITY HEALTH
Supported by
INDIAN COUNCIL OF MEDICAL RESEARCH
DECEMBER 1987
facilities
general
hospitals, and
specialist
graduate medical Institutions.
are available
at the
post
Between 1980-84, 258 CHC's were established bringing the total
to
475
centres.
In the same period 1,558 SHC/New PHCs were
established,
'bringing
the
total
number
of ■functioning SHCs to 7,126 <13>.
By March 1984, 7,210
PHC' s were etablished and functioning in the country, while the
figure
for
sub-centres was 74,307 /Toh1 o T
<v>
Institutional
Facilities for Medical
Care
Hospitals
the 1984
although
70 per
with a total capacity of
500,628
beds.
‘
■
■
that
74
cent
of bed capacity are
located in
of
the Indian
population
states like Madhya F'radesh
ion - bed ratio (Table II).’
where as
hospi tais
with
the
teaching
-cum
India Institute of Medical
Sciences, New Delhi, Post-Graduate Medical Educati
on •?<
Research
Institute,
Chandigarh, Jawahar Institute of Post-graduate Med
„„w,. « .Aesearcn
leal Education & Research,
Pondicherry
and All India Institute
of Hygiene 8< Public
Health,
Calcutta
’
pl 1 1 LI- _ i <■
— There are hospitals attached to colleges, big general hospitals (200-300 bed
J- metropolitan cities, district hospitals (50-200
bed
strength)
at
di stri
headquarters , and hospitals
at taiuka/tehsl1 level (20-50
bed
strength).
The Upgraded Primary Health Centre/Community Health Centre is a
al .
There
are 3,256 hospitals
(1984
estimates),
as against
j,_i40 by the
Government
bodies.
The former are mainly
Gujarat (733) and Kerala (606, 1979 estimate).
d 38.5
by local
(869
hospitals)
P.i®.P enaarieB
services are also
provided through 8,837
urban
out-patient
dispensarieshaving
a total strength
of 10,465 beds
3,
12,943
rural
dispensaries with a total
strength of 25,277 beds and through
<xn>.
Some 6,438
dispensaries
(5,o06 bed strength)
out of a
total of 21
780
are
in
the
private and voluntary sector and are largely concentrated
in Maharashtra and
GuJarat <!<•>•
V
3.
and
Curative
HEALTH MANPOWER
DEVELOPMENT
An
important component of the
the
training
and development
health programme is medical
education
of
different
categories of
personnel
(13) GO! , HOHFH , 1985 , p.131.
(14) GDI, DGHS, CBHI ,
1984, Table 8.2.
(15) SOI, DGHS, CBHI,
1984, Table 8.4.
(16) GDI, DGHS, CBH I ,
1984, Table 8.5.
26
Table
II
:
NUMBER OF HOSPITALS AND BEDS ACCORDING TO RURAL/URBAN(1.1.1984)
State/UT
RURAL
Source
:
GOI,
TOTAL
Beds
Hosp.
Beds
HOSP.
Beds
163
38
19
76
8
/•
■?
3691
2207
589
3096
422
961
60
2778
21635
751
6835
367
30
584
2327
3169
1072
225
3695
125
2493
9993
324
474
—
448
73
207
838
79
39
32039
•438
21985
30975
6989
3009
3883
2“o90
21443
16348
74 897
899
1975
528
9255
1 1 158
T- 026
252
36920
1 1 10
4 3660
40969
61 1
111
226
9 14
87
to 5
35
35730
9645
2257 4
34071
741 1
3970
3943
30468
43078
17099
81732
1266
2005
1112
1 1582
14327
18098
477
40615
1235
46153
50162
68 7
1 008
1 120
50
14504
Andhra Pradesh
Assam
Bihar
Gujarat
Haryana
Himachal Pradesh
Jammu & Kashmir
Karnataka
Kerala <1.1.79)
Madhya Pradesh
Maharashtra
Mani pur
Meqhalaya
Napaland
Orissa (1.1.83)
Punjab
Ra j asthan
Si kki m
Tamil Nadu (1.1.82)
Tri pur a
Utter Pradesh.
West Benqal
A ?< N Islands
Arunachal Pradesh
Chandiaarh (1.1.83)
D & N Haveli
De 1 h i
Goa, Daman St Di u
Lakshdweep
Mi zoram
Pondycherry
TOTAL
URBAN
Hosp.
03
4
-
50
62
822
50
146
-
186
163
22-3
1115
9
1
10
6
162
145
207
1
279
12
641
258
1
7
•p
—
64
51
—
8
10
1894
68233
5287
47
595
43
159
12
1
29
145
1 1 1
4
97
4
74
146
10
15
—
1
38
DGHS.
CBHI.
Hea 1th Statistics of
India
30-3
x_ xL 3
758
276
1274
21
11
<
307
256
230
5
376
16
715
404
1 1
534
1 120
—
14442
5 ’'5
-r
707
2246
1
oo
89
X.
12
10
432395
7131
1984,
(New Delhi::
x-Z.
I-10HFW,
•303 /
50
853
2246
500628
1974),
involved
in the delivery
of health care
services.
Health personnel
traditionally been classified into the following four categories:
1.
2.
3.
4.
have
Core health personnel such as physicians;
Para-medical. professionals
- clinical
psychologists,
nurses,, health
economists etc.;
Para-medical technicians X-ray Technicians, Laboratory
Technicians,
occupational therapists;
Para-medical assistants.
In the
Indian context
these refer
to
the
Multi-purpose
Health Workers, Auxiliary Nurse
Midwives, Health Guides
and so on.
This
section provides data on
several important categories of
health
workers . in the Indian health
programme.
It also gives
details of several
Government
Schemes
for the
training
and re-orientation
of .para-medical
assistants
that
aim
at improving the out reach of health care services to
the vast rural population.
wPl,
Table
III shows the present strength of health
manpower in India.
there are 1,914,387 functionaries (1984-85)
working in the field.
III
Table
HEALTH MANPOWER IN INDIA
(a)
Number of allopathic Doctors (1984)
(registered with State Medical
Counci Is.)
(b)
Registered Dentists
(c)
Registered Nurses (all
upto 31.12.1983
(
(
(
(
•
:
(d)
(i)
(ii)
(i i i)
(iv)
2,97,228
(1984)
8,725
categories)
4,25,399
Nurses
ANM-s
Midwives
Health Visitors
1,64,421
1,63,927
85,630
11,421
Registered practitioners
of Indian Systems of Medicine
Homeopathy (upto 1.1.1983)
3,87,218
(
(
(
(
(
Ayurveda
Unani
Si dha
Naturopathy
Homeopathy
2,32,190
27,736
11,476
106
1,15,710
(e)
Community Health Workers/
Health Guides (upto 31.3.85)
3,70,418
(f)
Dais
(i)
(i i)
(i i i)
(iv)
(v)
(upto March
'85)
•
Total...
Source
:
28
)
)
)
)
>
4,25,399
19,14,387
GDI, DGHS, CBHI , Heal th Statistics of
Delhi: MOHFW, 1985), Tables 7.1, 7.2,
respectively.
.
)
)
)
)•
India 1985, (New7.3, 15.2, 7.6,' 7.9
In
Physlcians
In 1984 there were 2,9,7,228 registered physicians in the country (Table
III). An important aspect of manpower development and medical
education
in
India,
has
been
the promotion
of
modern
allopathic medicine.
This is
evident
from the rapid growth of medical colleges offering M.B.B.S. degree.
Their
number
rose
from
25 in 1947
to 106 in
1981 (Table IV );
the 100
medical
Colleges from
where information
is available,
have an
admission
capacity of 10,818 seats.
However the total admission capacity is estimated
to be over 1’3,000 seats. <i-z>
1
Table IV
•
NUMBER OF STUDENTS ADMITTED IN FIRST YEAR M.B.B.S. COURSE
AND QUALIFIED FINAL M.B.B.S. IN INDIA IN SELECTED ACADEMIC
YEARS.’
TOTAL NO. OF
COLLEGES.
YEAR
NUMBER OF STUDENTS
MED I CAL
QUALIFIED
ADMITTED
1947-48
1950-51
1960-61 '
1970-71
1980-81
1983-84
1.
N.R.
Note
28
60
95
106
106
:
*
Source :
959
1,557
3,387
10,407
12,170**
N.R.
1,983
2,675
5,874
12,029
11 ,' 101 *
10,818*
Not Received.
Data not received from 6 medical colleges i n
1983-84.
Data not received f r om 6 medical colleges i n
7 in 1982-83.
GDI, DGHS, CBHI, 1985, Table 6.1.
1982-83 and
1981-82 and
However, the share of different States in the distribution
of
medical
colleges is very uneven.
This is demonstrated by the number
of
admissions
per lakh (100,000) population, which range
from 2.73 per lakh for Karnataka
to
0.96 per lakh for Uttar Pradesh (Table
V).
According to Sanerji, "This
differential coverage has wide implications, quite apart from the production
of physicians.
The
attached hospital
of a medical college makes available
a
high quality of medical
care to the local
population.
Correspondingly,
most facilities for post-graduate medical education are also concentrated in
States
which
have
a
high
ratio
of
admission
in
medical
colleges.
Distribution
of medical colleges
thus provides an
important indicator
of
disparaties in terms of health institution^ and health manpower". <!<»>
•
)*-■
Medical
education
has
also
been
characterised
by
an
increasing
orientation
towards
specialisations
and
super
specializations
in
the
curative field, as demonstrated by the expansion of post-graduate education.
The
admission capacity for the
MD course is 2,584
(1978-79), and for
the
post-graduate diploma course is 3,197.
(.17) GDI, DGHS, CBHI, Pocketbook of Health Statistics of
Health & Family Welfare, 1980), Table 27.
<1B) Banerji,
(19)
1985, p.57.
GDI, DGHS, CBHI,
1981, Table 6.4.
'
29
India 1980,
(New Delhi:
Ministry
□
Table
V : POPULATION COVERAGE OF MEDICAL COLLEGES
States/Uni on
Terrilories
No. of Medical
Col 1eges
Andhra Pradesh
Assam
.Bi har
Gujarat
Haryana
. Himachal Pradesh
Jammu & Kashmir
Karnataka
Kerala
Madhya Pradesh
Maharashtra
O Orissa
Punjab
Rajasthan
Tamil Nadu
Uttar Pradesh
West Bengal
Del hi
Goa, Daman, Diu
Pondi cherry
Other UTs.
N. A.
Source
s
:
8
"T
9
5
1
1
2.’
9
4
6
13
3
5
5
9
, 9
7
4
1
1
1
not avai1able.
GOI ., DGHS, CBHI,
Table 6.3
(MBBS)
No.
IN INDIA
1980-81.
of Students
Admi tted
(1st Yr.)1980-81
No.of Admissions
per one lakh ■
(100,000)
populat i on
911
+
531
659
124
66
141
1013
586
509
1468
75
300
460
566
1074
915
763
461
70
135
1.71
0. 76
1.94
0.96
1.56
2.36
2. 73
2. 31
0.98
2.34
0. 29
1.80
1.35
1. 17
0.96
1.68
12.31
42. 69
11.48
1.92
*
The norm set by the Bhore Committee was
Health Statistics o-f Indi.a 1981 . (New Del hi:
Ent i 11ement
of Medical
Col 1eges*
11
4
14
7
"Z
1
1
7
«5
10
13
5
3
7
10
22
11
1
—
—
1
1:50 lakhs.
MOHFW, 1981
There is no sign o+ controlling the intake of these
institutions.
On
the
one
hand there
is growing unemployment
among physicians, and
on the
other, this rapid expansion has made little impact on the public health care
system,
and
the health
services in the
rural areas.
This
assessment is
contained
in the reports o-f successive official committees and Study-Group.
<3Ia>
The Sixth Plan
admits, <21 > "There has
been pre'-occupation with
the
promotion
of curative and
clinical services through
city-based
hospitals
which have by and large catered to certain sections of the urban population.
....The
concept
of health .in its totality
with preventive and
promotive
health
care
services
in addition
to the
curative, is
still to
be made
operational.Doctors and para-medicals are reluctant to serve in the rural
areas.
They
are
generally
city
oriented
and
their
training
is
not
adequately adapted to the needs of the rural areas particularly in the field
of preventive and promotive health".
Upgraded departments of preventive and social medicine were established
in
medical colleges, many with
facilities for post-graduate education,
to
provide
a social
reorientation to
the education
and training
of
health
porkers.
However, these
remain among
the least
favoured departments
in
terms of
funding,
authority or prestige.
<=3>
The
proliferation
of
specializations
at
variance
with
the social
conditions in the country, has led to the export of medical personnel to the
industrialised
countries
of
the
West,
and
more
recently, to
the
oil
producing countries.
According to one estimate, almost 13 per cent
of
the
total
number of medical
personnel educated in
India have settled
abroad.
< 23 > -
The
flourishing private sector
is largely concentrated
in the
urban
areas.
In the
rural areas,
private practice
is carried
out chiefly
by
Registered
Medical Practitioners (RMPs),
usually belonging
to
the
local
community.
The overproduction of
allopathies doctors resulting
in
skill
competition
in urban areas has
compelled many to settle
in rural places.
This together with lack of even the minimal
health
infrastructuralsupport,
make
their presence less useful than generally surmized, and often leads to
unnecessary and excessive medication.
The Sixth Plan (1980-85), besides stating the necessity of re-orienting
medical
education to meet the requirements of rural areas, also proposed to
encourage
private practitioners to settle in rural areas as a supplement to
the Government health services.
Besides the scheme launched by nationalised
banks to provide financial assistance to professionals,
including
doctors,
for
self-employment,
the Plan
also cites the
examples of the
schemes to
(20)
Government of
India,
Group, on Medical
Education and Support Manpower
(Shrivasta
Committee), Health Services and Medical Education: A Programme for Immediate Action, (Ne
Delhi:
Ministry of
Health and Family Planning, 1975) pp. 38-39;
GDI, Draft Sixth Fiv
Year
Plan 1978-83
(Revised), (New Delhi: Planning Commission, 1979),
p. 431;
India
Council of Social Science Research and Indian Council of
Medical Research, Health fo
All:
An Alternative Strategy : Report of a Study Group Set Up Jointly by ICSSR and ICHR
(Pune:
Indian Institute of Education, 1981), p. 159-59.
(21)
Government of India,
Planning Commission,
Planning Commission, 1981), p.367..
Sixth Five
Year Plan
1980-85,
(New
(22)
S.S. Jha, "How to make our Doctors more Relevant", Science Today, December 1981.
(23)
A. Bose, “Evolution of Health Policy in India".
31
In Bose and Desai
Delhi
(eds.), 1983,. p.34.
encourage
part-time
service
-from
private
practitioners
and
agencies at the sub-centre and village levels, initiated by Tamil
Andhra Pradesh. <=•/»>
vol untary
Nadu
and
The r epr esen t at i on o-f women in medical teaching institutions
is
with
the exception
of the
Obstetrics and
Gynaecology
departments.
number of female doctors is below that of male doctors (Table Vi).
Table Vis
poor ,
The
NUMBER OF DOCTORS BY SEX AND QUALIFICATIONS REGISTERED WITH
THE IMC UPTO 1979.
G R A D U A I E S
HALL
FEMALE
LICENTIATES
MALE
FEMALE
TOTAL
MALE
FEMALE
1,60,297
53,259
1,94,687
53,259
GRAND TOTAL
Note
:
Source :
2,935
-
46,194
2,40,881
Information for Karnataka Council is for 1978.
Data are from
17 state medical councils.
Medical Council of India, as cited in GOI, Handbook on Social
Welfare
Statistics
1981 ,
(New Delhi: 1982) ,
Tables
3.3 &
3. 4~
Dentists
The number of dentists registered with the Dental Council of
India
in
1984 was 8,725 (Table III),having risen from 3,290 in 1951 <zo>■
By 1983-84
there
were 25 dental colleges with a total annual admission capacity of 831
seat s
.
Pharmaci sta
was
The number of pharmacists registered with the State
16,046 as on 31.3.82. <-■’•>
Practitioners of
Indian Systems of Medicine
(ISM)
Pharmacy
& Homeopathy
Councils
(H)■
Upto
January
1983,
there
were
a
total
of
3,87,
218
registeredpractitioner of the Indigenous (tr adi t i onal ) Systems of Medicines
Homeopathy
(ISM
&
H)
in
India
(Table
III).
These
included
2,32,190
practitioners
of
Ayurveda,
27,736
practitioners
of
Unani,
11,476
practitioners
of
Sidha,
106
practitioners
of
Naturopathy
and 1,15,710
practitioners of Homeopathy. <=B>
(24)
GOI, Planning Commission, 1901, p.
371.
1985, Table 7.2.
(25)
GOI, DGHS, CBHI ,
(26)
Ibid, Table 6.4.
(27)
Ibid, Table 7.17.
(28)
For details of ISM 4 H, see the Chapter on Indian Systems of Medicine & Homeopathy in
this volume.
Economic Intelligence Service
Basic Statistics Relating to
the Indian Economy
States
SEPTEMBER 1993
LIBRARY
INDIAN SOCIAL INSTITUTE
24, BENSON ROAD,
BENSON TOWN
BANGALORE-550046.
CMIE
Centre For Monitoring Indian Economy Pvt. Ltd.
110-120 Kaliandas Udyog Bhavan Near Prabhadevi P. O., Bombay 400 025
Table 1. i
Census Population: 1951 to 1991
Annual rate of growth (%) between
Population('OOO)________________
1951
1961
1971
1981
1991
1951
1961
1971
1981
1951
and
1961
‘and
1971
and
1981
and
1991
and
1991
States
31,115
35,983
43,503
53,551
66,508
Andhra Pradesh
@@
8,029
337
468
632
865
Arunachal Pradesh
10,837
14,625
18,041
22,414
Assam
38,782
46,447
56,353
69,915
86,374
Bihar
547
590
795
1,008
1,170
16,263
20,633
26,698
34,086
5,674
7,591
10,037
2,386
2,812
3,460
1.9
2.1
2.2
1.9
3.3
3.0
3.2
3.2
3.0
3.0
2.1
2.2
2.6
1.8
2.0
2.2
2.1
2.0
Goa
0.8
3.0
2.4
1.5
1.9
41,310
Gujarat
2.4
2.6
2.5
1.9-
2.4
12,922
16,464
Haryana
3.0
2.8
2.6
2.5
2.7
4,281
5,171
Himachal Pradesh
1.7
2.1
2.2
1.9
2.0
1.5
3,254
3,561
4,617
5,987
7719
Jammu & Kashmir
0.9
2.6
2.6
2.6
6.8
19,402
23,587
29,299
37,136
44,977
Karnataka
2.0
2.2
2.4
1.9
1.0
13,549
16,904
21,347
25,454
29,098
Kerala
2.2
2.4
1.8
1.3
1.9
26,072
32,372
41,654
53,179
66,181
Madhya Pradesh
2.2
2.6
2.5
2.2
2.4
32,002
39,554
50,412
62,783
78,937
Maharashtra
2.1
2.5
2.2
2.3
2.3
578
780
1,073
1,421
1,837
Manipur
3.0
3.2
2.8
2.6
2.9
606
769
1,012
1,336
1,775
Meghalaya
2.4
2.8
2.8
2.9
2.7
196
266
332
494
690
M izoram
3.1
2.2
4.0
3.4
3.2
4.4
213
369
516
775
1,210
Nagaland
5.6
4.6
17,549
21,945
26,370
31,660
Orissa
1.8
3.4
' 2.3
4.2
14,646
1.9
1.8
1.9
9,160
11,135
13,551
16,789
20,282
Punjab
2.0
2.0
2.2
1.9
2.0
15,971
20,156
25,766
34,262
44,006
Rajasthan
2.4
2.5
2.9
2.5
2.6
138
162
210
316
406
Sikkim
1.6
2.6
4.2
2.5
2.7
30,119
33,687
41,199
48,408
55,859
Tamil Nadu
1.1
2.0
1.6
1.4
1.6
639
1,142
1,556
2,053
2,757
Tripura
6.0
2.8
3.0
3.7
63,220
73,755
88,341
110,863
139,112
Uttar Pradesh
1.6
3.1
1.8
2.3
2.3
2.0
26,300
34,926
44,312
54,581
68,078
West Bengal
2.9
2.4
2.1
2.2
2.4
5.7
Union Territories
31
64
115
189
281
Andaman
7.5
6.0
5.1
4.1
24
120
257
452
642
Chandigarh
17.5
7.9
5.8
3.6
8.6
41
58
74
104
138
Dadra & Nagar
3.5
2.5
3.4
2.9
3.1
79
6,220
9,420
49
37
63
1,744
2,659
4,066
101
Daman & Diu
-2.8
5.5
2.3
2.5
1.8
Delhi
4.3
4.3
4.3
4.2
4.3
21
24
32
40
52
Lakshadweep
1.3
2.9
2.3
369
472
604
808
Pondicherry
1.5
2.5
2.3
2.5
2.6
_ 317
2.9
2.4
361,088
439,235
548,160
684,329
846,302
All-India
, 20
2.2
2.2
2.1
2.2
46,836
58,280
74,000
115,683 Relatively rich States
2.2
2.4
2.3
2.3
2.3
158,691
190,279
234,059
92,494
294,588
367,333 Relatively poor States
1.8
2.1
2.3
2.2
2.1
®@ Included under Assam.
Table 2,2
Doctors Registered with State Medical Councils: 1971 to 1987
Persons per doctor (’000 persons)
Number of Registered Medical Practitioners
1971
1974
1980
1985
1971
1987
1974
1980
1985
1987
States
9,647
13,612
21,487
27,494
29,261
Andhra Pradesh
4.51
3.55
2.49
2.17
2.08
4,336
5,085
7,165
8,640
9,149
Assam
3.37
3.19
2.52
2.32
2.24
10,446
11,828
17,063
22,217
23,450
Bihar
5.39
5.31
4.10
3.50
3.38
6,896
9,248
13,884
17,669
19,173
Gujarat
3.87
3.26
2.46
2.12
1.99
2.43
2.07
1.93
1.56
743
1,293
2,459
3,289
3,622
Jammu & Kashmir
6.21
4.07
7,745
11,165
18,959
24,490
26,722
Karnataka
3.78
2.95
1.96
1.67
4,943
6,910
11,097
14,208
15,568
Kerala
4.32
3.37
2.29
1.91
1.77
4,651
7,014
11,077
7,141
8,526
Madhya Pradesh
8.96
6.65
4.71
8.23
7.06
21,835
26,798
39,062
37,394
41,035
Maharashtra
2.31
2.10
1.61
1.88
1.75
4,323
5,611
7,704
9,378
9,866
Orissa
5.08
4.29
3.42
3.07
2.97
12,358
15,297
20,012
23,632
24,615
Punjab
1.10
0.99
0.84
0.78
0.76
10,501
11,613
Rajasthan
7.72
5.84
4.22
3.69
3.42
3,337
5,086
8,124
18,728
22,461
30,305
36,860
40,023
Tamil Nadu
2.20
1.99
1.60
1.41
1.31
12,887
16,494
22,610
27,584
29,376
Uttar Pradesh
6.86
6.00
4.90
4.50
4.32
25,664
27,058
31,623
37,005
38,738
West Bengal
1.73
1.82
1.73
1.65
1.61
682
830
148,539
184,960 262,631
3.55
3.18
2.50
34,193
42,095
59,074
61,026
65,650 Relatively rich States
1.87
1.69
1.35
1.45
1.38
35,644
46,033
66,578
76,821
82,831 Relatively poor States
6.57
5.69
4.41
4.27
4.05
308,184 331,567
Delhi
Above States & UT
11.19
9.58
2.37
2.25
THE FOUNDATION FOR RESEARCH IN COMMUNITY HEALTH
Table A7 : OUTTURN OF ALLOPATHIC MEDICAL AND NURSING PERSONNEL
IN INDIA (1950-1987) .
REFERENCE
YEARS
ALLOPATHS
DENTISTS
1950
1955
1960
1965
1970
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1557
2743
3387
5387
10407
11962
13783
12190*
13083
12170*
12197*
11992*
10511
10469*
9177*
NA
NA
14
31
140
294
478
499
449
466
515
501
488
541
603
662
567
677
660
POST GRADUATES
(ALLOPATHS &
DENTISTS)
88
110
397
791
1396
2265
3694
3699
3562
3759
3833
3940
4161
4909
5121
5427
5791
NURSES
B.Sc. GENERAL
14
21
25
67
101
184
190
240
219
263
214
240
315
NA
NA
NA
NA
1282
1962
2562
4255
6257
5506
5892
6788
6503
7256
8144
7351
7750
8533
8956
8208
NA
SOURCE ■ Health Information of India, CBHI, GOI, various years.
Notes
:*
Data on the outturn of allopaths was not received from
2 medical colleges in 1975-76, 1 in 1976-77, 2 in
1977-78, 6 in 1981-82, 7 in 1982-83, 14 in 1983-84, 15
in 1984-85 and 25 in 1985-86. Thus, the data is
grossly underrated.
NA = Not Available.
Table Al: MEDICAL AND NURSING HUMANPOWER IN INDIA (1952-87)
PATHS
1952
1956
1961
1966
65370
■ 76904
83756
103184
NA
NA
27468
NA
1969
1971
1974
128584
151129
190838
110514
NA
145434
1979
1981
1984
1985
1986
1987
249752
268712
297228
112638
115710
123852
123852
131091
NA
SOURCE :
.306966
319254
330755
C5 j
NA
NA
73382
NA
155828
NA'
223109
225477
233824
251071
251071
272800
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
18128
24530
18093
18357
11352
11352
11581
NA
Health Statistics of India,
lo<Me
A)0 : Al ,
NA
30400
25988
28737
28382
28382
28711
NA
DENTISTS _ _ _ PARAMEDICS_ _
MILWIVES
NURSES
TOTAL
(£ ’
3291
3003
3582
4374
17989
24724
35584
57621
NA
NA
51194$
NA
69937
80620
98403
NA
80159
607909
5182
5512
6647
631948
665340
711885
7518
8648
8725
139825
154230'
100554
130382
14'4820 ’
170888
168493
299050
339381
721623
763437
9598
9725
9750
197735
207430
NA
171590
369325
185240
NA
392670
-
184606
419456
-
-
CBHI, GOI relevant years.
86778
-
160779
198957
270207
-
THE FO U N D A TIO N FOR RESEARCH IN C O M M U N IT Y HEALTH
REFERENCE ___________________________ DOCTORS___________________________
UNANI
TOTAL
AYURVEDS
YEARS
HOMOEO
SIDHA
ALLOPATHS
THE FOUNDATION FOR RESEARCH IN COMMUNITY HEALTH
Table
A2 : RURAL-URBAN DISTRIBUTION OF MEDICAL HUMANPOWER IN INDIA
REFERENCE
YEARS
1961
R
U
T
1971
R
U
T
1981
R
U
T
TOTAL
ALLOPATHS
HOMOEO
PATHS
AYURVEDS
80484
(48.7)
84787
(51.3)
165271
(100.0)
19187
(29.5)
45837
(70.5)
65024
(100.0)
16185
(52.4)
11075
(40.6)
27260
(100.0)
45112
(61.8)
27875
(38.2)
72987
(100.0)
114354
(49.4)
117154
(50.6)
231508
(100.0)
49846
(39.4)
76507
(60.6)
126353
(100.0)
23527
(61.2)
14917
(38.8)
38444
(100.0)
36871
(62.6)
21994
(37.4)
58865
(100.0)
4110
(52.4)
3736
(47.6)
7846
(100.0)
124426
(39.2)
192643
(60.8)
317069
(100.0)
(27.2)
143147
(72.8)
196554
(100.0)
31916
(63.7)
18188
(36.3)
50104
(100.0)
36503
(57.3)
27211
(42.7)
63714
(100.0)
2600
(38.8)
4097
(61.2)
6697
(100.0)
53407
Source :
Census 1961,
Notes
U = Urban
R = Rural ;;
;
T = Total
Figures in parentheses are percentages.
'■
1971,
UNANI
-
1981, GOI.
Unani practitioners were not covered separately by the
1961 Census.
Sidha medical practitioners were not
covered by the census.
Table I
Developments In Health Sector
(Pre-lndependent India to India In the year 1989)
1946
1989
1. Population Served
342 million
776 million
2. Health manpower
(population per unit)
a. Doctors available
b. Nurses
c. Health visitor
d. Midwife
e. Trained Dais
1:6,300
1:43,000
1:4,00,000
1:60,000
Nil
1:2,680
1:4,500
1:30,000
—
5.64 lakh
trained
since 1974
0.24
0.59
44
46 (1941)
162/1000
20/1000
Nil
32
11.7
32
96
3-4
40%
58
3. Beds available/
1000 population
4. Health and Family
Welfare Indicators
a. Crude Death Rate
b. Crude Birth Rate
c. Infant Mortality Rate
d. Maternal Mortality Rate
e. Couple Protection Rate
f. Life Expectancy at birth
5. Control of Communicable Diseases
Very High
a. Small Pox
b. Malaria
75 millions
very high
c. Plague
Eradicated
16,63,284
virtually nil
Sources:
1. Bhore Committee Report (1946)
2. Statement of National Health Policy Goyernment of India (1983)
'■ S Health Information India (1988)
*/4. Ind^aTPcpulation - Policies and Perspectives. Planning Commission,
GovemmerF-of-laeiay-Mav 19S9r
'
5. Annual Report 1988-89, Ministry of Health and Family Welfare,
Government of India
43
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Thursday, October 14, 2004 11:14 PM
Asian Farmers & WTO + Cotton Imports Arbritration
Here Are TWO News Items :-
1. Asian farmers' cooperatives gear up to face WTO challenge
2. Indian arbritration for cotton imports on the anvil
FAPXI FRONT Column
Asian farmers’ co-ops gear up to face WO challenge
;tl;v''www.finanoia1oxnrcss.com To full story.php?eontcnt id=71055
r\SH0K R SHARMA
Posted Online : Monday, October 11, 2004 at 0000 hours 1ST
Farmers’ cooperatives of Asia has at last woken up to evaluate the. Oshima-Supachai revised
-amework draft on WTO negotiations and to formulate future strategies.
The .Asian Fanners Group for Cooperation (AFGC) lias begun its two-day deliberation on
this issue in Delhi from October 10. AFCG was formed at the initiative of the JA-Zcnchu which is
the Central Union of Agricultural Cooperatives for Japan. The principal mandate of AFGC is to
promote WTO agricultural negotiations in the interest of Asian farmers and to strengthen economic
integration in the region.
AFGC believes that in the cara of globalisation of trade, small farmers should be regularly
consulted and involved in W’TO negotiations. In its earlier meetings the AFGC had called for
coordination of agricultural policy in Asia so that all countries in the region benefit economically. It
also advocated that the WTO negotiations should be flexible enough to take info account the
distinctive, features of farm systems in the region. AFGC also believes that the free trade agreements
(FT As) and economic partnership agreements (EP As) should be. improving the quality of life and
income of farmers.
The Delhi meeting of the AFGC is the sixth in the scries and is being attended by farmers’
rcnrcscntativcs from nine, countries like Indonesia, Japan, Korea, Malaysia, The Philippines, Sri
I anka, Thailand, Vietnam and India. Hopefully the conference will be able to come out with, some
nraotical solutions to the injustice done to the- Third W orld in the Oshima-Supachai draft.
1
J
10/15/04
Page 2 of3
The »president of the International Cooperative Alliance (TCA), Tvano Rarberini when he was in
India on the occasion of* the Asia-Pacific Cooperative IVlinistcrs Conference in February this year
suggested the- need For agriculture cooperatives across to come closer and evolve a common stand
for W TO negotiations and for other global bodies. The TCA di? cctor-gcnci al, Tain KTacdonalG even
went to the extent of suggesting trans-boundary trade between cooperatives. Hope these suggestions
translate into reality?
The Asian farmers cooperatives, by and large, has held India along with other G-5 countries
hkc IS, HU. Australia and Rrazil responsible for lacuna in the Framework draft as they took
initiatives to reach at an agreement on modalities at the WTO general council meeting in August 1,
2004. mdia is the G~o member which negotiated on behalf of A sian countries, some Oi which arc
food importing countries.
Toshin amada. senior executive director of .TA 7-enchu, Japan said that the framework draft
serves as a potential foothold for upcoming negotiations and evaluation should be done to some
extent since flexibilities arc given in terms of a treatment of sensitive products. Non-tradc concerns
as reflected in para 13 of die Doha Declaration should he taken into account in farm negotiations in
die interests of small farmers, poverty eradication and. food security. The special and differential
treatment for developing countries in the draft needs to be properly evaluated.
Yamada pleaded for more market access, co-cxistcncc of different types oF farming systems
through flexibilities on treatment of sensitive products. Special safeguard mechanism for developing
countries needs to be negotiated There should be a clear-out definitions of‘subsistence farmers’ as
well as ‘resource-poor farmers', taking into consideration Asian Farming system, poverty’ alleviation
and food security. Pood aid should also be defined to the point win •■•er it »s «or humanitarian
reasons or for disposal of surplus s>. /C*’ .'
The views of Koi* m 'armors is important »n the context that a Korean farmer, frustrated witn
• V- IO terms of trade, committed suicide at Cancun when negotiations were on. Here theKorean representative, Hyung-Sung Hwang of the National Agricultural Cooperative Federation
said that the tiered tariff reduction formula proposed in Oshimo-Supachai draft will adversely affect
Korea which has relatively large number of high tariffs. Damages to Korean agriculture can be
made good to a certain extent if countries arc allowed to self-select sensitive products.
Negotiations will be very difficult on the issue of whether to cap high farm tariff*. A dual
reduction approach, apart from a tiered formula, would impose, a considerable limitation on Korea’s
future implementation of domestic support. Hwang further said that a tentative analysis carried out
in a a research institute in Korea shows that 20% down payment cut in the first implementing year
would have no immediate impact on agriculture.
Capping product-specific AMS at average levels and reducing some- of the them would likely
place the most serious burden upon design and implementation of Korca‘s future supporting
policies. Hven if Korea s farm sector maintains a developing country’ status in the current
negotiations, Korea would not be exempt from the reduction of de minimis payments.
The views of the Asian Farm cooperatives arc diverse. T.ct s hope the conference will reach at some
COnSCHSUS.
TCA set to bail out cotton mills facing disputes
iittp> www. financialcxprcss.com/fc full siory.php7contcnt id-~71052
10/15/04
Page .3 of 3
ASHOK B SH 'TTAf
Posted Online : Monday, October 11, 2004 at 0000 hours 1ST
NFW DF.I.FTT. OCT 10: The Indian Council of Arbitration (IGA) has come forward to bail out the
domestic cotton mills facing disputes in import of cotton.
TC-A, a body floated by the Federation of Indian Chambers of Commerce and Industry
(FIGG •) has agreed to handle cotton arbitration issue of Indian mills. But the Indian Cotton ivhlls
Federation (IGA4F} wants IGA. to nave proper legal teeth regarding the issue.
TGMF has already prepared a standard cotton contract form and got it cleared by ?vTul1a &
X-Iulla & Craigic Blunt & Caroc. The IGMF chairman, Dr BK Krishnaraj Vanavaryar has written to
the I Inion commerce minister, Kamal Nath to accept this draft standard, cotton contract form and
notify it under the New Foreign Trade Policy which would ultimately mandate that all disputes of
Indian mills arising out of import of cotton would be settled through ICA.
The matter is currently engaging the attention of Kamal Nath and a decision to this effect is
expected shortly.
Sources in the TCA said “we have planned to establish a separate cotton arbitration committee
which would include representatives from cotton mills. We have also decided to frame a separate
set of cotton arbitration rules on basis of that framed by ICA IF and a standard cotton contract form
in consultation with TCA-IF.”
T< A is an experienced and internationally reputed arbitration body and has cooperation
agreements with 40 arbitration bodies all over the world.
Speaking to FF, the TCA IF secretary-general DK Nair said: “Currently the cotton imports arc
being done through contracts under Liverpool Cotton Association /T.CA). The T.CA contracts and
rules arc heavily weighed in favour of suppliers. We tried our best to negotiate with T.CA for
modifying the rules, but it did not yield any results.
He said that earlier the millers had planed to set up a separate arbitration body in the country
for cotton consisting of nominees from TCMF and other regional bodies like FTC A and SICA. Later
there was a plan to approach TCA for taking up the issue of arbitration.
Air Nair said that the industry has estimated that cotton output in the country in 2004-05
would bo about 213 lakh bales. There is a carryover stock of 26 lakh bales from the previous year
But despite, the situation of good availability of cotton, AJr Nair said there would be some imports,
particularly extra long staple cotton in which the country is in short supply. He said that extra long
staple cotton is needed for processing yams having long counts. Besides this, he said some mills
may like to import cotton for which they have preferences like cotton from Australia or Israel or
any other country.
Yahoo! India Matrimony: Find your life oartner online.
10/1 5/0
P. Satya Sekhar, Indian Institute of Health and Family Welfare,
Hyderabad.
Vijay Mahajan. Director, BASIX, Hyderabad.
S.V. Subramanian, Department of Health and Social Behaviour, Harvard
School of Public Health, Harvard University, Boston, USA
Bhagirath Behra, Ph.D student, ZEF Bonn, Germany.
Economic Reforms and Challenges
Ahead: An Overview
C.H. Hanumantha Rao and
S. Mahendra Dev
1. MACROECONOMIC SCENE
Introduction
If the balance of payments crisis in 1991 triggered off economic
reforms in the country, the year 1995-96, in many ways, proved to be a
watershed for the macroeconomic scene in Andhra Pradesh. States own
tax revenues as per cent of Gross State Domestic Product (GSDP) dropped
by nearly 3 percentage points between 1990-91 and 1995-96, due largely
to the fall in revenues from state excise following the introduction of
Prohibition. The subsidy on rice, which is untargeted, amounted to thrice
the level at which the population below the poverty line could be provided
These together with the low rates for water and electricity for irrigation
resulted in a huge revenue loss which was much beyond the capacity of a
state like A.P. whose per capita income was below the national average.
The state thus landed itself in a severe financial crisis, holding up much
needed developmental expenditure.
The state government responded to this challenge boldly and
imaginatively by undertaking measures to raise tax and non-tax revenues
and by launching several reforms to restructure the institutions for the
management of infrastructure, after holding wide-ranging discussions with
experts and people at large. These initiatives have earned a name for Andhra
Pradesh as one in the forefront of economic reforms, raising high
expectations within the country and abroad about its performance.
However, the impact of economic reforms on development is not
instantaneous. There are usually considerable time lags between the
initiation of reforms and the outcomes in terms of various indicators of
development. For a short period of a few years, some of the observed
achievements and deficiencies may be traceable to policies and programmes
initiated long ago, whereas quite a few of the results from the policy
initiatives currently being undertaken can be expected only after a
considerable lapse of time. Nevertheless, this need not deter one from
Overview
3
Andhra Pradesh Development
2
forming judgements as to the intrinsic worth of reforms being undertaken
or their likely consequences.
Growth
The GSDP growth in the 1980s in A.P., at a little over 5% p.a.,
was nearly the same or marginally higher than the GDP growth for the
country. Bur in the 1990s whereas there was a clear step-up in the growth
rate of GDP for rhe country to a little over 6%, there is no clear evidence
of an improvement in the growth rate of GSDP in A.P. However, thanks to
the rapid decline in the population growth rate in the state during the
1990s, there was an improvement in the per capita SDP growth from
3.3% to 4.0%, but was still lower than the per capita GDP growth in the
country in the 1990s. The level of per capita income in the state has always
been lower than all India, and the gap has widened somewhat in rhe
1990s between the state and All India as well as fast growing stares, as is
evident from the increasing divergence in these per capita growth rates.
It is interesting to note that the improved performance of the state
in terms of per capita GSDP growth in the post-reform period of nineties
is entirely due to the deceleration in population growth rate which has
hardly anything to do with economic -reforms launched in the state since
mid-nineties. We shall discuss later rhe factors contributing to this rapid
decline in fertility rate.
The improvement in the GDP growth in the country in the post
reform period is accounted wholly by the growth in rhe service sector
(which reflects in part the recent rise in salaries), as the growth rates for
agriculture & allied as well as industry showed a decline. A.P. experienced
a deceleration in the growth of service sector and was well below the All
India growth.
How does one explain the fact that whereas some states did
experience significant rise in their SDP growth rates in the 1990s by
benefiting from economic reforms and thereby pushed up the All India
average growth rate, A.P. could not respond in a similar way? The answer
lies partly in rhe initial or pre-reform level of social and economic
infrastructure conducive to growth and partly in the rare of capital
formation, physical as well as human, in the post-reform period.
Capital Formation
The index of Social and Economic Infrastructure for Andhra Pradesh
was slightly below the All India average in 1995, and was a little above the
average in the year 2000. Of the seven states ranking higher than A.P. in
respect of GSDP growth, except Rajasthan, the remaining 6 states
had a higher rank than A.P. in regard to Social and Economic Infrastructure
in 1995 as well as in 2000. Similarly, out of the seven stares whose GSDP
growth rates were lower than that of A.P., except Punjab in 1995, and
Punjab as well as Uttar Pradesh in 2000, the remaining states had a lower
rank than that of A.P. in respect of Social and Economic Infrastructure'.
Clearly, the states whose initial or pre-reform conditions were favourable
in respect of infrastructure could benefit more from the opportunities
opened up. especially in the service sector, by economic reforms and register
higher growth rates in GSDP.
The states ranking higher than A.P. in respect of social and economic
infrastructure could attract greater foreign direct investment (FDI). Between
1991 and 2001, the top five states in terms of attracting FDI, viz.,
Maharashtra, Delhi, Tamil Nadu, Karnataka and Gujarat, accounted for
52% of total FDI approvals in the country. Despite its reforms, A.P. could
manage to attract only about 4.6% of total FDI in rhe country. Domestic
private investment is similarly influenced by the availability of social and
economic infrastructure. For example, of the financial assistance disbursed
by the All India financial institutions, the cumulative share of Andhra
Pradesh upto March 1997 was 7.2% as against 13.5% for Gujarat and
21.0% for Maharashtra.
Thus there has been a deceleration in the growth rate of total gross
fixed capital formation (public and private) in Andhra Pradesh from 6%
in the 1980s to 3.6% in the 1990s.Despite this downtrend in the rate of
capital formation, if there is no marked decline in the GSDP growth rate
between the eighties and the nineties, it could well be due to some
improvement in the efficiency of resource use, including possible changes
in the composition of growth towards less capital-intensive activities.
Income Poverty and Human Development
The official poverty ratios, based on the Lakdawala Committee
methodology, show very low levels of rural poverty (11%) and high levels
of urban poverty (26.6%) for A.P. as compared to all India (27% and
23.6% respectively) for 1999-2000. Thus rhe official estimates of poverty
ratio for urban areas in A.P. are more than double those for rural areas in
the 1990s. This is quite contrary to what one would expect on the basis of
the rural-urban differences in per capita income and wages. However,
alternative estimates by reputed scholars like Angus Deaton and Jean Dreze
show that the poverty ratios in A.P. were closer to the all India pattern i.e.,
26% for rural areas and 12% for urban areas. The very low level of official
rural poverty ratios in A.P. were due to its base year poverty line in
6
Andhra Pradesh Development
Overview
significant decline in the tax-GDP ratio for the Centre as well as for states,
as many of these services are not taxed. Second, due to the reduction in tax
rates by the Center in the post-reform period, in rhe absence of necessary
reforms to widen the tax base or to improve compliance, the growth of tax
revenues has decelerated adversely affecting the revenues of the Centre as
well as the states. Consequently, revenues from the Centre as a proportion
of A.P.s total revenue receipts declined significantly during this period.
On the expenditure side, the rise in expenditure on salaries following the
recommendations of the Fifth Pay Commission was the single most
important factor affecting the finances of the Centre as well as the states.
A comparative picture alone would reveal how different states have
responded to rhe emerging fiscal stress. Looked at from this angle, the
performance of Andhra Pradesh is not bad.
However, there is considerable scope for raising revenues in A.P.,
especially from non-tax sources. For example, successful implementation
of reforms for the participatory management of the distribution systems
for rural electricity and irrigation water can raise the revenues through
higher user charges. Similarly, there is a scope for raising tax revenues
from sales tax, motor vehicle tax, stamp duty and registration fee and
profession tax through the necessary reforms and effective implementation.
Needless to say, there is a significant potential for achieving economy in
expenditure. These measures for augmenting resources need to be combined
with refocusing expenditure towards greater capital outlays for building
up infrastructure.
2 INFRSTRUCTLJRE
Andhra Pradesh has taken major initiatives in the mid-nineties to
introduce reforms in the management of infrastructure in critical areas like
power and irrigation, besides achieving a breakthrough in introducing
Information Technology which has far reaching consequences for the
economy and society. We propose to review in this Section the progress of
reforms in these diree major sectors in the state.
Power
Power sector in rhe state experienced a sharp deterioration in the
nineties. The A.P. State Electricity Board (APSEB) has been the most well
performing institution among the State Electricity Boards in the country
upto 1990. It has passed through three distinct phases in the last three
decades: Period of rise (1970-90); Period of fall (1990-96); and Period of
reform (1996-2000).
7
The first period is characterized by the high rate of growth of
capacity addition, rapid increases in the sale of energy and sound financial
performance. Till 1980, industrial consumption accounted for nearly twothirds of the total sales and contributed to the high average realization of
revenue in spite of greatly subsidized tariff for agriculture which was
compensated by relentlessly increasing the tariff for industries. During
the first period industrial tariff increased by 7 times while agricultural
tariff decreased. From 1982 onwards, APSEB adopted a non-metered flat
rate for agriculture. Among other factors, this lenient tariff extended by
the Rural Electrification Corporation led to rapid rise in the agricultural
consumption and consequendy, around 1990, agriculture occupied a space
almost equal to industries. In addition, this cross-subsidization against
industry played an important role in the rise of captive generation plains
and consequently the reduction in the share of industry in consumption.
The rate of growth of generation capacity noticeably slowed down
during 1990 to 1996. However, APSEB kept on increasing supply to
agriculture by purchasing power at high cost from other sources. Moreover,
due to several unavoidable factors cost of electricity generation increased
significantly since 1994-95- For example, of the additional capacity set up
during this period, nearly 85% was Thermal (coal and gas). During the
period up to 1994r95 the tariff rose in step with consumer price index.
Later the tariff was not revised and consequendy APSEB started incurring
losses. Tariff revision was undertaken in 1995-96 which led to an improved
position of revenue collection in the following two years but declined very
sharply from 1998-99 onwards. The revision was resorted to again only in
January 1999- A big increase in tariff did push up the tariff to HT and
commercial consumers, but it did not have significant positive revenue
effect, because additional sales to these categories was insignificant!
It became clear that financial problems of APSEB were primarily
due to: (i) irrational tariff setting, especially for agriculture, which rendered
the system unviable; and (ii) increasing Transmission and Distribution
(T&D) losses which were camouflaged by “treating” most of it as agricultural
consumption. This was becoming clearly unsustainable. In response to
the emerging crisis, the state government came forward with reforms
through a forward-looking legislation.
In 1998, Andhra Pradesh Electricity Reform Act was enacted and
Andhra Pradesh Electricity Reform Rules were issued in 1999. Andhra
Pradesh Electricity Regulatory Commission (APERC) was set up and
APSEB was restructured in 1999 into APGENCO, which was entrusted
with all the generation related assets and APTRANSCO with transmission
and distribution related assets. The generation function was thus separated
8
Andhra Pradesh Development
from the transmission and distribution functions. This was a major step in
the right direction based on die international experience, but much remains
to be done to increase competition at the generation level as well as at the
distribution end through decentralisation.
Power sector reforms in the state are stuck up on the core issue of
tariff setting for agricultural uses and not much headway can be made
without bringing about a measure of consensus by adopting innovative
approaches to achieve the goals of higher revenue, greater equity, conservation
of resources, e.g., power and ground water, and accountability of
management to the consumers. The present debate on tariff centres round
die goals of revenue and equity often by counter-posing the two. The
other two issues, viz., conserving ground water and electricity, and
accountability to the consumers are hardly brought into the picture. Yet,
overexploitation of ground water on account of flat rate for power where
the marginal cost of pumping water is zero, is a matter of serious concern.
This issue has to be brought into the forefront of debate on electricity
tariff for agriculture.lt may be noted, in this context, that the heavy implied
subsidy in the water rates for assured sources of irrigation is seen by die
farmers under lift irrigation as a justification for a corresponding subsidy
for diem. Therefore, rationalization of surface irrigation rates has also to be
looked at simultaneously.
A viable solution would be to combine subsidy on power with
metering of pump secs within a decentralised system of distribution through
the participation of user-farmers. A reasonable subsidy on a certain number
of units sufficient to pump water for one or two hectares can be given to all
the farmers where there are no assured sources of surface irrigation. Coupons
can be issued co the farmers sufficient to cover the cost of subsidised
electricity which they can use for payment of bills, while paying on their
own for the excess electricity consumed. This system would have the merit
of inducing economy on the use of electricity beyond the subsidised units
by the middle and large farmers who are in face the bulk consumers, while
providing relief to the small and marginal farmers. Since all the farmers are
provided subsidy uniformly at a flat rate, the scheme can become politically
feasible, even as the effective incidence of electricity rate would be
progressive, because the proportion of subsidised consumption would
decline as die size of holding increases. Under the system of decentralised
participatory management, the latter would be accountable to the farmers
for the promised quantity of supply well as for the quality of services.
It should be possible to take steps, that are overdue, for improving
business management and corporate governance under the public
Overview
9>
ownership. Urgent action is needed to tighten the internal control
procedures and introduce innovative rewards and penalties with assigned
accountability at all levels. The regulatory commission must have a policy
on how cross subsidization would be dealt within their commercial tariff
fixation. The tariff should be based on costs that are competitive assuming
minimal losses on account ofT&D and theft of power. Finally, reforms
should be projected as the means to provide adequate power of acceptable
quality at affordable prices to all consumers.
Irrigation
Andhra Pradesh has been a leading participant in Green Revolution
in the country, especially for rice. This has been greatly facilitated by the
availability of good irrigation infrastructure. However, the existing systems
have deteriorated over time and addition to the capacity has been negligible
due to the decline in public investment. According to the Planning
Commission, nearly 35% of the ultimate potential from Major &: Medium
irrigation projects in the state is yet to be exploited. In the case of minor
irrigation, about 40% of the ultimate potential remains unutilised.
In Telangana and Rayalaseema regions, well irrigation has become
the dominant source replacing tanks. Tanks, which used to be traditionally
managed by the village communities were being managed now by the
irrigation department. With the neglect of maintenance and encroachment
of tank beds by resourceful farmers, most of them became dysfunctional.
In the absence of ground water replenishment, mainly through tanks,
failure of wells has become common. Recent cotton farmer suicides in the
state are attributed, among other factors, to well failure.
Major problems in irrigation sector in the state are: Inadequate
allocation for Operation and Maintenance (O&M), inequitable distribution
of water, lack of incentives for saving water and low recovery of water rates.
Neglect of O&M is attributable to low recovery of water charges. This
problem is compounded on account of water rate being in the nature of a
tax collected by the revenue department, robbing the irrigation systems of
a sense of ownership.
Andhra Pradesh is the first state in the country to enact in 1997
the Andhra Pradesh Farmers Management of Irrigation Systems
Acc,1997,(APFMIS Act) making the formation of Water Users’ Associations
(WUAs) mandatory for the management of irrigation. This is designed to
bring greater accountability in irrigation department as well as a sense of
ownership of the management systems among farmers. More than 10,000
Water Users’ Associations (WUAs) have been formed, of which about 80%
10
Andhra Pradesh Development
are in minor irrigation sector. However, bulk of the area covered is under
canal irrigation.
The impact of WUAs has been encouraging in these areas, especially
in terms of providing irrigation to tail end farmers. This has been made
possible by cleaning of canals and water courses and monitoring of water
losses by the WUAs. Area under paddy is reported to have increased
significantly following reforms. However, much of the reported increase
could be statistical because of underreporting of irrigated area before reform
, as this meant lesser payment of water tax to revenue department. Paddy
yields are reported to have increased by 40%.
Irrigation charges were increased by more than three times from
1997. Even so, the surface water rates will at best cover maintenance charges,
whereas in the case of lift irrigation the farmer also bears the full capital
cost of the well or bore. However, despite a significant rise in irrigation
charges, rhe farmers’ support for reforms in respect of surface irrigation is
visible. This is because the launching of these reforms was preceded by
widespread consultation and awareness building among farmers about the
benefits from reforms. Consequently, increased water tax is seen by farmers
as supplementing the resources of WUAs for maintenance of irrigation
systems. Even so, the effective rate of collection remains low at around
64%.The reason could be that WUAs have not yet been made fully
responsible for collection of water charges, making the process fully
democratic and accountable. Another notable development was that the
works were executed by WUAs themselves at lesser cost instead of getting
them done by contractors. But the vested interests lost no time in adjusting
to the new situation by presidents of the WUAs acting as contractors. This
and other malpractices invited the wrath of farmers who in several cases
used the provision in the Act for recall of the presidents. The only long
term solution to this is awareness building and promoting participatory
monitoring and evaluation. Unlike in the case of canal irrigation, WUAs
are not found to be effective in respect of tank irrigation due to insufficient
allocations.
Further reforms contemplated in the immediate future are to ensure
greater share in water tax to die WUAs, ranging from 50% in the case of
major irrigation to 90% in the case of minor irrigation where the costs of
rehabilitation are high and management problems more complex.
It is proposed that, in the medium term, WUAs should move
towards volumetric pricing so as to induce efficient use of water, including
shifts in cropping pattern, after the delivery systems are technically upgraded
by installing measuring devices for diis purpose. WUAs seem to be
willing to collect water charges on a volumetric basis. However, successful
Overview
11
implementation requires, in addition to improved awareness of the benefits
e.g. conservation of water, capacity building through training to the lower
level officials as well as the functionaries of the WUAs.
There has been a major progress towards bringing ground water
under the purview of community management through Watershed
Development. We shall discuss this below when we take up the issue of
environmental degradation. While reforms for rehabilitating the existing
systems through WUAs and measures for conserving rain water through
watershed development have inspired the farmers and won their support,
there is, as yet, not enough clarity in official pronouncements on the efficient
management of rural electricity systems and the expansion of irrigated
area from assured sources. The controversy on these issues has acquired
sharper overtones because backward regions like Rayalaseema and
Telangana are heavily dependent on electricity for pumping water and,
at the same time, the unexploited potential from major irrigation projects
is greater for these regions. Clarity in official policy and credible steps to
reduce regional imbalances in respect of assured sources'of irrigation can
alone win wider support of the farmers for reforms in irrigation sector.
Information Technology
The IT industry has an immense potential for growth in Andhra
Pradesh on account of a large pool of scientific manpower and a strong
commitment of the state government to promote this industry. In A.P.,
especially in the city of Hyderabad, a great thrust has been given in the
nineties to the growth of software industry. This is evidenced by the
impressive growth of software exports from the state from Rs.0.20 million
to nearly Rs.37 billion during 1991-92 to 2002-03. The state stood fourth
in the country with nearly 10% of exports made by STP units in 2002O3.The bulk of software exports from Hyderabad went to the USA and
Canada (59%)The IT-enabled services accounted for 39% of the software
exports in 20002-03 and are playing a significant role in the creation of
employment opportunities in this sector.
An area of about 52 sq. km near the ‘Hi-Tec City’ has been carved
out as Cyberabad. Efforts seem to be on to ensure broad based development
of this sector, as in Tamil Nadu, by shifting the focus of software
development to the other important urban centres in the state. Indian
software industry has so far been basically engaged in meeting the export
demand as a low cost supplier. But it must now venture into high-end
products and services moving up the value chain and cater to demand
from Indian industry, agriculture and consumers at large. From this angle,
some of the recent developments in A.P. are encouraging.
12
Andhra Pradesh Development
Among rhe several ‘e-governmenr’ initiatives that the government
of A.P has undertaken, e-Seva seems to be getting popular in Hyderabad.
It is planned for expansion to 56 other towns with a total of 146 centres.
These are basically collection centers for various bills/fees (like telephone,
electricity, rrade license fee etc.) and other services for the citizens and are
integrated with several departments. Apart from e-Seva, some of the ‘egovernment’ projects in the state are Computer Aided Registration
Department(CARD), Fully Automated Services of Transport(FAST),
Andhra Pradesh State Wide Area Network(APSWAN), Andhra Pradesh
Development Monitoring System(APDMS) and Secretariat Knowledge and
Information System(SKIMS).
In addition to such services, priority should be given for IT
applications that directly benefit industry, agriculture and rural areas in
general for reducing poverty. Rural people should be convinced that 11
solutions would help them to improve their incomes and livelihoods. It is
heartening that the National Institute of Agricultural Extension
Management (MANAGE), Hyderabad, is taking up measures towards this
end by selecting some villages in Rangareddy district. These villages had
successful Mutually Aided Co-operative Thrift and Credit
Societies(MACTCS). Multimedia CDs are distributed to these groups on
several aspects of Agriculture, Rural Development, Health and Education
etc. They have been using the Internet for browsing the websites for
government programmes and schemes, weather forecasts, market prices,
job opportunities, news etc. regularly. MANAGE is planning to connect
over 350 blocks in 28 districts in the country on Internet in the near
future.
There is a need, on the above lines, for a greater thrust in rhe
policy framework in A.P. towards malting IT an enabler in development
and equaliser of opportunities. With the spread of education and
decentralisation of governance, IT can become a powerful tool in the
hands of people at large for their socio-economic betterment and overall
empowerment.
3. SECTORAL DEVELOPMENT - PRODUCTION SECTORS
Agriculture
Andhra Pradesh was among the very few states in the country which
heralded green revolution, especially in respect of rice, in the 1970s.
Agriculture &C Allied sector in the state registered a growth rate of 2.21%
in the eighties and its performance was only marginally better in die post
reform period of nineties (2.47%). There was a deceleration in the growth
Overview
" ’ 13 v»
of this sector in the country as a whole in the nineties to 2.73%. Thus
agricultural growth of A.P. in the post-reform period is below the low Al
India growth rate and significantly lower than 3.7% projected by the A.P.
Vision 2020’ document for die period 1995-2000. The available data
shows that the state experienced a decline in capital formation in agriculture
sector in the post-reform period, even in absolute terms, basically on account
of a decline in capital formation by the private sector, at a time when there
was a significant increase in the private sector capital formation in this
sector for the country as a whole. This aspect needs further investigation.
The growth rate of crop output in the state decelerated from 3.4%
in the eighties to 2.3 per cent in the nineties. The growth rate of total
factor productivity in the crop sector declined from 1.58 per cent to 1.05
per cent over the same period. As a result, the state has slided down in its
competitiveness in respect of several crops. For example, in die case of rice,
the cost of production per unit of output in A.P. is now higher than in
major rice growing states of Punjab and Uttar Pradesh. Cost of production
of cotton is also higher as compared to Maharashtra. The- resulting
unremunerativeness of crop production probably explains the increase in
fallow land noticed in some districts of Telangana and Rayalaseema. Given
viable strategies, such lands could have been used for water-saving enterprises
like fodder cultivation for dairy development, animal husbandry and
horticulture.
Growth rate in Agriculture & Allied sectors has been maintained
during the nineties in the state roughly at the eighties level, despite a
significant reduction in the growth of crop output, because of diversification
of agriculture into enterprises like dairying, animal husbandry, poultry
etc., which contribute more than 20 per cent to the state domestic product
from agriculture. The demand for these products has been favourable on
account of the rise in per capita income and high income elasticity of
demand for such products. Thus the nineties witnessed a revival in milk
production with an annual growth rate rising to 5.7 per cent per annum,
with a prospect of further growth in its demand to about six per cent per
annum during the current decade. Development of dairying has received a
special impetus with the shift from cattle to buffalo on account of a
significant reduction in animal power consequent to mechanisation, and
adoption of cow where buffalo is not suitable. Further, there has been a
steep increase in the demand for mutton since the eighties. Therefore, the
population of small ruminants, particularly goats, has been increasing at a
fast rate, especially in resource poor areas. Andhra Pradesh specializes in
poultry production, contributing as high as 20 per cent of the total eggs
produced in the country.
14
Andhra Pradesh Development
Despite encouraging trends in some of these sectors, the overall
performance of agriculture in the last two decades has remained poor and
much below its potential. It is surprising that even in the post-reform
period, government regulations that inhibit private investment and
enterprise in agriculture, e.g., restrictions on the movement of foodgrains,
levy on millers and other restrictions on marketing and processing are, by
and large, intact. Such restrictions together with declining public investment
in irrigation, rural infrastructure, and agricultural research explain the steep
decline in private investment. Increase in concealed tenancy with insecurity
of tenure and continued rural unrest and extremist violence may also be
inhibiting private investment.
Area under public sources of irrigation, e.g., canals declined in rhe
nineties due to deceleration in public investment. As such, the entire increase
in the irrigated area in the nineties is due to well irrigation which has
become highly erratic in most areas on account of a steep fall in water
table. Growth rate of public expenditure on research and education declined
from 6.6 per cent in the eighties to 3.9 per cent in the nineties. The
intensity of government investment in agricultural research and education
in the state at 0.26% of its agriculture GDP during 1992-94, was lower
than for the other three southern states and was just around half of that for
All India (0‘.49%)ii.e., for the Centre and states together. Public expenditure
on extension, which is borne by the state government, declined in absolute
terms in the nineties. It constituted a mere 0.02% of state’s Ag GDP
during 1992-94, as against the All States average of 0.15%.
Several studies show that small and marginal farmers in A.P. still
depend on informal or non-institutional sources of credit, particularly
money-lenders, for 60 to 80 per cent of their credit requirements.
Consequently, the rates of interest charged are also quite high. This has
had an adverse fall-out in the context of the emerging high-input, highrisk agriculture. With the virtual breakdown of the extension machinery
and lack of access to institutional credit, small and marginal farmers are
becoming increasingly dependent upon the private trade for credit and
extension services. In the absence of public regulation of such services, the
resource-poor and gullible farmers are becoming victims of exploitation by
the unscrupulous traders and moneylenders interested in selling spurious
materials like pesticides. The cases of suicide by the farmers in the state
relate basically to small and marginal farmers and tenants, and are traceable
to such deprivation and malpractices, and so highlight the immediate need
for revamping the extension and credit delivery systems in the state.
Despite its poor performance in the last two decades, agriculture
in the state has the potential for achieving a minimum growth rate of 4 per
Overview
15
cent per annum. In fact, the average growth rate of agriculture for the state
projected by the Vision-2020 document of the government of A.P is over
6% p.a. for the period 2000-2020. Andhra Pradesh has a special advantage
of being centrally located in the country with a long coast line. It has
varied agro-climatic conditions conducive to diversified agriculture in tune
with the emerging demand. The farmers in the state are known for their
enterprise and willingness to take risk. High agricultural growth would
step up the rural demand for non-cereal items of food including dairy
products, as well as non-farm products, as income elasticities of demand
for them are quite high in rural areas. This can provide an impetus to the
growth of rural non-farm sector in the state and would contribute to
eradicating rural poverty by absorbing the labour force released from
agriculture.
The Vision-2020 document focuses on critical areas of importance
for agriculture in A.P. taking into account states comparative advantage,
opportunities being opened up in the country and globally, and the
development experience in other countries. The document emphasises a
critical role both for public and private investments, and releasing of private
initiative and enterprise by liberalising the regulatory framework. Within
this framework, die Vision-2020 document advocates full exploitation of
the available irrigation potential, development of rural roads and marketing
infrastructure, evolution and application of cost reducing technologies,
especially biotechnology focusing on dry land crops and enterprises, and
strengthening the small farm sector through the consolidation of holdings
and supply of institutional credit. It also advocates contractual arrangements
between the private sector engaged in agro-processing etc., and the small
farmers with a view to ensuring for them easy access to technology, inputs
and credit and for minimising risk by guaranteeing remunerative prices
for their produce.
It is clear that die role of the government is critical by way of
stepping up investments as well as creating the policy environment
conducive to private investment and enterprise, and for ensuring full
participation of the resource-poor farmers and the lagging regions in
agricultural development. The initiatives of the state government in this
direction so far fall very much short of die requirements and expectations.
The government, therefore, needs to set its priorities right by placing
agriculture development high on its agenda.
Industry
There has been some slow down in the growth rate of GSDP from
industry in the state from 7.36% to 6.2% between the eighties and the
16
Andhra Pradesh Development
post-liberalisation period (1993-94 to 2000-01). Though the share of the
industrial sector in the state domestic product has increased somewhat in
the nineties, this has not been accompanied by the increase in its share in
employment. During the last three decades AP economy has been
experiencing a slow but significant structural shift from agriculture to
mainly services sector both in terms of output and employment. To sustain
the growth of the services sector, which now accounts for 50% of GSDP,
the commodity sectors, especially industry, need to grow at a sufficiently
rapid rate to generate adequate demand for the services.
The slow down in industrial growth in the post-liberalisation period
is accounted by the deceleration in die growth of registered manufacturing
sector. Construction and the non-agro based industries have shown a higher
growth in this period. The annual growth rate of chemical and chemical
products, of which drugs and pharmaceuticals is an important component,
has more than doubled. The transport equipment and parts has also shown
a phenomenal growth in rhe post liberalization period.
In its 1992 ‘New Industrial'Policy Statement’ the government of
AP identified the agro-bascd industries as one of the most potential industrial
activities and suggested a number of incentives for this sector. Despite
this, the growth rate of agro-industries declined, though marginally, with
the exception of textile products and cotton textiles. There is an indication
of a rise in the input prices of agro-based industries compared to those of
metal and chemical-based ones: Among the agro-based industries food
processing sector is given most importance. But it is difficult to Judge the
impact of the policy effort to boost this industry in the 90s. While there
is probably a positive impact of emphasis on export promotion on the
textile product sector in the state, some of the industries have performed
unsatisfactorily in the post-reform period. The other industrial sector which
has got specific emphasis in the ‘New Industrial Policy’ of 1992 is the
electronic and software-based industries. The data show a considerable
decline in the organized sector of this industry during 1994-95 to 199798.However, the considerable increase in the software exports from the
state in the recent years points to the possibility of much of this activity
taking place in the unregistered sector.
There is a fear that the liberalized regime in the Indian context
may lead to jobless growth. However, employment in the registered
manufacturing sector in A.P. has grown at a higher rate in the post
liberalization period when compared to the earlier years. The agro-based
industries of textile products, food products and synthetic fiber textiles
have mainly contributed to this rise, while employment growth rate in the
non agro-based industries is nearly the same in both the periods. The rate
Overview
’ • 17 .
of growth of real wages was lower in the nineties when compared with the
pre-liberalization period. Disaggregated data show a similar trend for the
agro-based industries. However, the growth of wages in rhe non agrobased industries is higher in the nineties where growth rate of employment
is lower. It appears that in the liberalised regime growth in employment
has been higher in sectors where the wage rates have risen slowly. There is
a general improvement in the labour productivity in almost all the industrial
categories, but, in general, this increase in labour productivity has not
been associated with the increase in the rate of growth of employment due
to slow down in industrial growth. In comparison with industrially
developed states of India, labour productivity is significantly low in the
small-scale industrial activities in A.P. Non-availability of credit facilities
and acute shortage of infrastructure, mainly power, may account for
inefficient technology in small units. However, export promotion parks
taken up by the government in the recent years may improve some of the
small scale sector activities in the state.
The Vision-2020 document for A.P. has recognized that investment
needed for the proposed growth rate of 11% is not possible with internal
savings only. There is evidence of a slow rate of growth of investment in the
state in rhe 1990s. According to the CII study, AP has the 8th rank among
states in respect of investment attractiveness. Together with' a number of
incentives, governmenr is trying to assure sufficient infrastructural support
to the new industrial ventures as well as make the process less bureaucratic
and hazard-free, for example, through its special emphasis on the ‘single
window’ procedure. In order to reduce the investment gap, the government
hopes to get external investments both from domestic and foreign sources
by making rhe state an attractive destination for investments. However, it
is very unlikely that the level of funding available would be such as to
raise levels of living by nine times as envisaged in the Vision- 2020
document.
Of the growth engines identified by the Vision-2020 document,
knowledge-intensive industries have, by and large, shown a high growth.
LT. sector and Chemical and Chemical products belong to this category.
Barring construction, other resource-intensive and labour-intensive
industries, for which there is a large potential for growth in the state, have
not performed equally well. Agro- industries including food processing,
leather products, and mining belong to this group. Some of these, e.g.,
garments and leather products, have a large potential for exports as well as
employment generation.
Unlike in agriculture, A.P. does not have a strong background and
tradition of industrial development, like the neighbouring state of Tamil
18
Andhra Pradesh Development
Overview
Nadu, in terms of entrepreneurship, technical skills, infrastructure and
the orientation of bureaucracy. Besides, new challenges have been thrown
up in this sector in the post-liberalisation era: Industry is exposed now to
greater domestic as well as external competition. Also, a consensus is
emerging now among the states to desist from unhealthy competition
among themselves to attract industries by providing undue tax concessions
and such other incentives. In this new context, therefore, growth of industry
in A.P. depends crucially on the internal capabilities at the state level such
as rhe availability of physical infrastructure like power, water and transport,
skilled manpower, credit and absence of regulatory constraints that inhibit
investment and growth. These requirements are even more critical for small
and medium industries including agro-industries lacking in resources and
influence.
One of the major constraints on the growth rate is ensuring timely
availability of adequate credit at reasonable cost from institutional sources
to the small and medium enterprises, especially to those located in rural
areas. The other is good governance for ensuring growth-promoting
regulatory environment by cutting down delays in clearances and corruption.
4.
SECTORAL DEVELOPMENT: SOCIAL SECTOR
Demography
After high growth in population for four decades between 195191, there was a rapid decline in population growth in the last decade
(1991-2001). The Sample Registration System shows that the total fertility
rate (TFR) has fallen from nearly 4.6 children per women in the early
1970s to 2.5 children by 1997, a decline to the tune of 2 children per
woman during the 26-year period. The National Family Health Survey
(NFHS) estimate of TFR is 2.25 during 1996-98 period with rural areas
having slightly higher fertility (2.32) than urban areas (2.07). The state,
thus, would achieve a replacement level of fertility in the very near future.
The decline in fertility was largely attained through the contraceptive use
and particularly through female sterilization. It is worth noting here that
the fertility reduction has embraced all sections of the society in all the
regions irrespective of economic, social, religious or cultural differences.
It is interesting that fertility reduction in A.P. defies conventional
theories and beliefs, which thought that fertility reduction needed
considerable improvement either in economic or social development. The
experience of Kerala state indicates that female education and health
improvement (e.g. reduction in infant mortality) were responsible for
decline in fertility levels. In the case of A.P., female illiteracy and infant
19
mortality are relatively high but fertility decline has been faster. The existing
fertility levels, however, are higher among the illiterate and low-income
groups, and in backward or less-developed districts.
The policies and programmes followed in the state during 1980s
and 1990s could be responsible for the fertility decline. The rapid decline
began in the state by the second half of 1980s and accelerated in the
1990s. In the 1980s, welfare programmes like Public Distribution System
(PDS) and Integrated Child Development services (ICDS)), women’s
movement (DWCRA groups) and expansion of health services could be
responsible for fertility decline by providing social security, raising awareness
of women and empowering them. The family planning programme received
further boost in the 1990s through concrete policies and action. In order
to have decentralized decision making, district population stabilization
societies were formed and funds devolved to local levels. In the 1990s, the
women’s self help group movement is an undoubted success story. Such
groups not only helped women to earn additional income but also would
have imparted progressive outlook on issues such as small family size and
contraceptive use.
Hence the success of the state in controlling the population problem
partly lies in better governance of both family planning related and welfare
oriented programmes including women’s self help groups.
Regarding mortality levels, although the overall mortality level is
low rhe present level of infant mortality is comparatively high. A major
part of infant mortality is now explained by neonatal mortality (28 days).
Oddly, neonatal mortality has not recorded any marked decline even with
dramatic decline in fertility level. The main causes of neonatal deaths are
usually associated with mother specific factors. Given the poor social and
health indicators of women in the state, major strides in infant mortality is
unlikely to be achieved without addressing the overall socio-economic and
health status of the women particularly the nutritional levels, and access
to health care in the critical post delivery period.
The population projections show that state has to face two
challenges in future. First, there is going to be considerable increase in the
working age population primarily due to the high fertility in rhe past.
This would create severe pressure on employment by the year 2020. This
can also be an opportunity as, for example, the faster increase in working
population was found to be a blessing for the economic boom in East
Asian countries. Second, old age population may double between 19912016. At the same time, the younger population will be declining in
numbers. This would result in a greying population and the state has to
prepare for old age security measures.
20
Andhra Pradesh Development
Health
Health indicators such as life expectancy and infant mortality show
that the performance of the state is lower as compared to the rest of the
southern states. Surveys on medical facilities in the state indicate the
predominance of private sector in health care and its rapid growth. The
NSS data indicate that the private sector was predominant in AP even
during the 1980s. It accounted for about 70 percent of inpatient care in
rural areas and 62 percent in urban areas, which was highest in the country.
By mid 1990s, its share further increased to 77.5 percent in the rural areas
and marginally increased in the urban areas. The role of private sector was
much higher in the developed districts.
The government hospitals have their limitations in terms of
inadequate funding, overcrowding, corruption, lack of cleanliness etc., but
the private hospitals need regulation. They indulge in overcharging, excess
medication/testing, unnecessary treatment etc., which are more harmful
to rhe patients physically and financially. The poor suffer much more
than the rich because of these unethical practices.
The private sector in medical care has outgrown rhe size of public
sector through the direct and indirect incentives given by the stare. Public
policy should focus on mechanisms to enforce the provision of providing
free care to the poor by private hospitals who utilized the financial
incentives, land grants, etc. Otherwise the role of the state should be
confined to regulation of quality and pricing of medical care. Instead of
direct regulation, the state should create independent regulatory institutions
with representations to all stakeholders like consumer societies, NGOs,
government officials, private medical establishments, etc. to ensure basic
standards in the quality and pricing of medical care.
Due to lack of adequate resources, there was stagnation in the size
and degeneration in the quality of care at the public hospitals. There is
overcrowding and more than full capacity utilization of public hospitals,
particularly at the secondary and the tertiary levels. There is still widespread
unmet demand for medical care among the poor and the government should
expand facilities in the public sector to meet this demand. The recent
investments in the secondary level hospitals and perceptible improvement
in the quality of care attracted more and more patients particularly from
the poorer sections. Thus public hospitals at present are self-targeted, i.e.,
used mostly by the poor. It is not very clear whether increase in user charges
would improve the performance of public hospitals.
Major weakness in public health care system is poor performance
of the primary health centres, mainly due to staff absenteeism. Hospital
Overview
" * 21
Advisory Committees (HACs) have been created, but they are not effective.
There is a need to involve Panchayati Raj Institutions (PRIs) in health
sector at local level. State should encourage community participation to
improve the functioning of the public health care system.
In the case of health sector, three issues have to be addressed to
improve the performance. First, public expenditure on health sector has to
be increased. Public expenditure on health is now only around 1 per cent
of GSDP. The expenditure on primary health is at a meagre 0.1 per cent of
GSDP. These percentages have been stagnant in the 1990s and there is a
need to allocate more resources co the sector. However, along with this the
efficiency of public spending has to be improved. More resources should
be spent on preventive care, as the poor benefit more from this. Primary
health care services should be accountable to the local governments and
ensure better services for the money spent. The second issue is how to'
make the private sector accountable. The share of private sector in the total
health care sector is high and has increased over time. One can not ignore,
therefore, the role of private sector in the state. Government should promote
institutions to regulate the private sector. Third, there is a need to promote
community health insurance schemes (e.g. SEWA’s scheme) in order to
provide health services ar low cost to poor.
Education
Literacy rate in Andhra Pradesh has been much below the all India
level during the last four decades. However, the gap between the two has
narrowed down during the 1990s, as the rate of increase in literacy rate
during this period in the state is one of the highest in the country. Literacy
rates across regions show highest rural-urban as well as social disparities in
Telangana while Rayalaseema reflects highest gender disparities. Between
1971 and 2001, regional disparities in literacy rates have come down
substantially. Enrolment ratio has increased substantially bur dropouts
continue to be a problem despite declining trend, especially in backward
regions.
The RBI data shows that the ratio of public expenditure on
education to GSDP in AP. declined from 3.3% in 1985-86 to 2.1% in
1995-96. It then started increasing and reached the ratio of 2.9% in 200001.As compared to other South Indian states, the share of public
expenditure on education in GSDP and budget was lower in AP. Primary
education gets low priority within education. A a result, quality of education
suffers (per student expenditures are much lower in AP).
Overview
22
23
Andhra Pradesh Development
5.
While the demand factors are important in influencing rhe extent
of literacy and dropout rates, access or supply or quality factors influence
enrolment rates. Poverty in backward regions and rising demand for labour
in developed regions are the most important reasons for dropouts. Indirect
cost of education (Uniform, transport etc.) is substantial and hence dampens
the demand for education.
There is a need for an integrated approach in order to bring children
to school and retain them. The Vision 2020 document rightly identifies
demand and supply factors like low literacy of parents, poverty, lack of
access to school and poor infrastructure facilities as the main causes of low
literacy rates. The 93rd amendment of the Indian Constitution to provide
universal provision of school education to all the children in the age group
6-14 years will now require the state governments to improve supply side
factors like access to schools, increase in the number of teachers,
infrastructure etc. Andhra Pradesh government is preparing for provision
of universal education to all children. A.P. is the first state to consider all
the non-school going children as child labourers. The state feels that such
a definition would put pressure on government, parents and civil society
to achieve universal provision of school education. From the demand side,
generation of productive employment and minimum wages would go a
long way in reducing the households dependence on children. Specific
policies are required to address the gender and social disparities.
Similar to health, there are three issues that the state has to address
in improving literacy and primary education in the state. First, more
resources have to be allocated to education, particularly to primary
education, from the budget. Second, the quality of education in terms of
curriculum, better infrastructure and teaching has to be improved. Third,
retaining children in the schools is more difficult than enrolling them.
The A.P. government has designed schemes such as ‘Mabadi’ (our school),
‘Chaduvkundam’ (back to school) and akshara sankranti to improve access
to children, women and disadvantaged communities. The focus of these
programmes being more on enrolment this may result in more dropouts
later. Retaining of children in the schools needs social mobilization of the
community against child labour and for education and intensive
institutional arrangements. Such attempts are very successful at the micro
level as demonstrated by NGOs like the MV Foundation. Also, there is a
need to involve PRIs in primary education at local level.
EMPLOYMENT, POVERTY AND INEQUALITY
Faster growth through economic reforms is not always accompanied
by a faster rate of poverty reduction. Poverty can be reduced if growth
increases employment potential (quantity and quality). Similarly, the extent
to which the working poor are able to integrate into the economic process
also determines the impact of growth on poverty. For example, if there is a
mismatch between the opportunities available due to economic reforms
and skills of the workers, the poor will not be able to take advantage of
such opportunities and gain from the reforms.
Employment
Employment in A.P. is largely unorganized, rural and non
industrial. The work participation rates declined significantly in both rural
and urban areas in the 1990s. The employment growth recorded a drastic
decline during 1993-94 to 1999-2000 as compared to the period
1983-84 to 1993-94. Thus the expectations of increasing employment
opportunities due to economic reforms have not materialized.
Only around 6 per cent of the total work force is in the organized
sector in A.P. The growth of employment in the organized sector has
declined over time. In the post-reform period, the growth of public sector
employment declined drastically while that of private sector employment
increased. However, the growth of private sector employment has not
been able to compensate for the loss of jobs in the public sector.
The share of non-farm employment in rural areas has been stagnant
since 1983. The diversification of employment has been slower in A.P. as
compared to all India in the 1990s. There is no sign of increase in the
usual status unemployment rates. However, the daily status unemployment
recorded significant increase in the 1990s. This is a matter of concern for
the state. The problem of unemployment is more severe for the educated
and the youth. Casualization has been increasing over time. Rural A.P. has
the second highest percentage of casual labourers in the country. Labour
productivity showed high growth in agriculture and manufacturing in the
1990s. In spite of this, the growth of real wages in rural areas declined
significantly in the 1990s. Around 91 per cent of the rural workers in A.P.
are either illiterate or have been educated only up to primary level.
Some macro projections show that to focus on agriculture & allied
and services would be the most desirable option from the point of view of
increasing employment, while reducing poverty and income disparity
significantly. There are some constraints for private sector participation.
24
Andhra Pradesh Development
Failures in labour, credit, and product markets are some such constraints.
Low infrastructure is another important constraint.
Given the problem of unemployment and underemployment for
the masses and unemployment for educated, there is a need to have twin
strategies for improving the livelihoods. The first sub-strategy should aim
ar rural and urban masses that are illiterate/semi-literate, unskilled, and
semi-literare/skilled. The second sub-strategy has to address the educated
unemployed. The policy goal should be to improve economic growth in
rural areas with emphasis on employment generation for rhe poor, and
shift workers from agriculture to non-agriculture activities, particularly
services in rural areas. To achieve this goal, it is necessary to focus on selected
growth engines and clusters: In order to have a focused intervention, the
Vision 2020 had suggested 18 “growth engines” for vertical (e.g. leaf ro
cloth) sub-sectoral interventions. However, these may not be adequate to
generate near full employment. As such, the number of growth engines in
agriculture, industry and services may have to be increased to between 30
to 40 for that purpose.
The task of generating employment (quantity and quality) is an
urgent and crucial one for reducing poverty. It needs a range of concerted
actions from the government, donors, banks, and rhe private sector and
from civil society institutions.
Poverty
We already looked at the measurement issues and the trends in
official and alternative estimates of poverty in the state. Here we propose
to examine the determinants of poverty and poverty alleviation programmes.
A multivariate analysis using wages and agriculture output as
independent variables shows that in the post-green revolution period (1970s
tol990s) increase in real wages played a more important role than the
growth of agricultural output. On the other hand, the effect of real wages
was low in the pre-green revolution period. It is possible that the gains
from agricultural growth were shared more widely in the pre-green
revolution period. Also, poverty in the post-green revolution period is
concentrated more among the wage labour.
Regarding poverty alleviation programmes, an evaluation shows
that the entry of non-poor into the Integrated Rural Development
Programme (IRDP) is around 26 percent across the selected districts viz.,
Anantapur, Nalgonda, and Vizianagaram in the late 1990s. The income
gains are more pronounced in the developed districts and among the
relatively better off among the poor. Under the Jawahar Rozgar Yojana
(JRY), employment generated per person per year, on an average, is around
Overview
25 *'
40 days across the sample villages of selected districts in 2001. The
employment created is not adequate to influence the wage rates in labour
market.
The governments strategy paper on poverty eradication recognizes
that long- term investment in core sectors such as agriculture, health and
education will accelerate the pace of poverty reduction. The government
would like to build on the successful lessons learnt from the self-help and
group approach towards empowerment of the poor for poverty reduction.
There are also some innovative programmes such as Janmabhoomi and
Deepam (LPG scheme), which help the poor. The rural poverty reduction
strategies thus will be multi-pronged and multi-sectoral. They can be
broadly classified under three categories: (a) intensive poverty reduction
initiatives through a strategy of social mobilization, (b) aggressively
promoting agricultural growth and (c) provision of basic minimum services.
After experimenting with several poverty alleviation programmes,
Government of A.P. has settled for two important programmes. One is
self-help group programme and the other is watershed based approach.
The Government’s basic strategy for removal of rural poverty in A.P. would
revolve around social mobilization and empowerment of the poor. The
ongoing mobilization of rhe rural poor women into self-help groups is a
major element of this strategy. The ongoing District Rural Poverty Initiative
(DPIP) project in 6 backward districts and the proposed A.P. Rural Poverty
Reduction project (APRPRP) are based on the strategy of social
mobilization and the empowerment of the rural poor. Considering the
inadequacies in the past developmental strategies, these two projects are
mandated to focus on the poorest of the poor, who have been left out of
various development initiatives. The impact of these programmes is yet to
be evaluated. Another important component for improving livelihoods is
micro watershed approach. The objectives of natural resource management,
growth in rainfed agricultural productivity and growth in employment
and incomes for the poor are sought to be achieved in a participatory
manner using the micro watershed as the basis for planning.
Andhra Pradesh has taken bold steps to demonstrate that a
convergence of conservation and development objectives can be achieved
through Joint Forest Management (JFM). Formation of JFM Committees
in Andhra Pradesh has successfully targeted remote and under-served
communities, in particular tribal populations. Women and landless
members of the community are specifically identified as they are much
more likely to be direcdy dependent on forests for income and to meet
their daily needs for fuel and fodder.
e
26
Andhra Pradesh Development
Presently, there are more than 25 poverty alleviation and welfare
schemes in the state. There is a need to have a re-look at some of these
programmes because welfare and poverty alleviation programmes that are
not cost-effective crowd out long-term investments.
Providing productive employment in agriculture and rural non
farm sector is important for reduction in poverty. Access to land (as owners
or tenants) and credit are important for the poor in agriculture. In order to
develop the rural non-farm sector, there is a need to look at issues such as
rural-urban linkages, infrastructure, markets, technology, and training in
skills.
Poverty alleviation depends on both macroeconomic policies and
poverty alleviation programmes. The economic reforms open up
opportunities for some groups and adversely affect some others. The key
strategy for reducing poverty lies in creating productive employment for
the poor through labour-intensive pattern of growth and better
implementation of poverty alleviation programmes.
Women’s Groups
Another important social change taking place in A.P. relates to
women’s empowerment (social and economic) through self-help groups.
As mentioned above, womens self help group (SHGs) approach has formed
a central element in the state’s social mobilization and community
empowerment strategy for poverty reduction. We look here at the
contribution of these groups to poverty alleviation and empowerment.
Groups formed under Development of Women and Children in
Rural Areas (DWCRA), South Asia Poverty Alleviation Programme (SAPAP)
and Cooperative Development Foundation (CDF) are considered here.
The basic assumption of all the models is that social capital contributes to
poverty alleviation. The groups consist of only the poor as members except
in CDF. While there are internal and external funds in DWCRA and SAPAP,
there are only internal funds in CDF.
DWCRA is the main model with large number of groups. Out of
the total existing SHGs of 4.28 lakhs in September 2002, around 1.90
lakhs are covered under DWCRA with a membership of around 25 lakhs.
The thrift and revolving fund of these groups add up to Rs. 1000 crores.
SAPAP created 5,201 groups in 20 mandals covering 34,600 women and
CDF formed 45,605 women into 200 woman thrift co-operatives (WTCs).
In terms of functioning of DWCRA groups, only 18 per cent of the groups
are of ‘A’ grade, 63 per cent of ‘B’ grade, and 19 per cent are of ‘C’ grade.
In case of SAPAP, 47.6 per cent of groups arc of ‘A’ grade.
Overview
27
Weaker sections of the society viz., SCs, STs, BCs are emphatically
targeted in DWCRA and SAPAP and to some extent in WTCs. However,
the participation of the poorest of the poor is very less in these models.
The entry of non-poor was found to be 16.65% in DWCRA and 28% in
SAPAP. The membership of groups is fairly long lived viz., 10 years or
more and drop outs are very low (less than 4%). The single most important
benefit from the groups is that they improved access to credit for the women
members. As they provide both production and consumption Ioans, the
members are relieved from the clutches of money lenders. As a result, the
interest rate in the informal credit market declined sharply. A main strength
of the DWCRA groups lies in the fact that these women groups have
managed to receive credit from banks. The repayment rate is high, i.e.,
more than 85% across all the models.
It was found that these groups had a perceptible impact on
alleviation of poverty. The additional income accrued to the members
from the activities undertaken in DWCRA varied between Rs. 10-30 per
day, on an average. In SAPAP, poverty was reduced for 69% of the members
but reduction in poverty was less for Dalits and women headed households.
Though gender poverty did not decline significantly, food security
improved marginally. These group-based activities enabled the near poor
to cross the poverty line. The activities undertaken are mostly traditional,
utilizing the existing skills of the members. These activities provided full
employment to the members as well as their male counterparts. In many
cases, the quality of employment improved as a result of shift from wage
employment to self-employment.
There were also non-economic impacts of the groups such as on
literacy, health, housing, and empowerment. The drive for literacy is a
common feature in all the models. The expenditure on health of the
members improved and infant mortality rate declined in DWCRA and
SAPAP. It was found that the women have taken up non-farm (service and
small business) activities and are venturing into non-traditional tasks and
enterprises, to some extent. Besides, the role of women in decision-making
in the family improved slightly. Some of them contested local body
elections also.
The findings show that the poorest of the poor are not participating
in the existing self-help groups. The repayment schedule suitable to the
poorest of the poor should be adopted. The improvement in skill base,
given the other asset base, can also be a solution to tackle the problems of
the poorest. Proper livelihood planning, bulk purchases of inputs and
collective marketing of outputs help the poorest of the poor to organize
their economic activity effectively. Thus micro-credit alone cannot address
28
Andhra Pradesh Development
rhe problems of the poorest. Interventions in commodity markets are also
needed. The second issue is how to make the existing groups sustainable
over time. The low growth of the economy and existing class relations are
posing constraints for the relatively better off among the poor in improving
their well-being. The process of empowerment of women can not be
sustained unless their livelihood concerns are apdy addressed. There is a
need to undertake viable economic activities which can improve incomes
much faster.
Food Security
The state is considered as food grain surplus and food secure at
macro level. However, there is food insecurity at the household level.
Around one fourth of the states population still suffers from chronic food
insecurity and around 40 per cent of the children suffer from malnutrition.
The consumption data indicate declining per capita monthly
consumption of cereals across all the income groups in rural and urban
areas of Andhra Pradesh. Within cereals rice, which is a staple food in AP,
shows mixed trends. In the case of the poorest 30 per cent in rural areas,
rice consumption increased at 2 per cent per annum, while for their
counterparts in the urban areas it fluctuated without any significant trend.
For the top group, both rural and urban, the rice consumption declined
considerably. High rate of decline in coarse cereal consumption is visible
across all the three income groups.
The implications of these trends for the cost of energy and energy
intake levels are adverse. The declining cereal consumption and within
this the declining coarse cereal consumption raised the cost of calories
derived from food expenditure considerably. The calorie-rupee ratio (the
ratio of calorie intake and food real expenditure) is declining for all the
income groups. It is of great concern that it is declining faster among the
poor compared to that of the richer groups. Given these trends, any price
rise in food items will further erode the calorie content of the food
expenditure for the poor.
To understand the factors responsible for these changes, the trends
in total expenditures and prices have been examined. In rural areas, with
the exception of 1999-2000, the growth rate of real expenditure is positive
for all the years. In urban areas also, the real expenditures show positive
growth rates. For the entire period, the trend growth rate for rural areas is
faster compared to that for urban areas. The relative price indices for cereals
in rural areas show a declining trend over the past three decades. However,
the rate of decline is coming down gradually in each of the last two decades.
In urban sector, the relative price index declined in the seventies and
Overview
eighties, but increased in the nineties. Though these trends do not indicate
anything adverse as of now, the trend, if it continues, may have adverse
impact on the poor who derive substantial portion of their energy intake
in the form of cereals. The shift in the consumption patterns inspite of
favourable price and income movements is attributed to the changes in
tastes and preferences, associated with increasing modernization and
urbanization of rural areas. Given the existing patterns of consumption,
ensuring adequate food security for the poor is possible only by raising
their purchasing power and by subsidizing their consumption.
The performance of state in the PDS is better than in the country
as a whole. However, it is still lagging behind southern states. The income
gains through the PDS in 1999-00 forms 6.57 per cent of the rural poor’s
total expenditure. PDS reduced rural poverty by about 7 percentage points
in 1999-00. Covering about 70 per cent of the households, the rice scheme
of Andhra Pradesh is highly cost ineffective. The estimates indicate that
the cost of transferring a rupee to the poor through PDS is about Rs. 10.85,
on account of ineffective targeting.
The projected demand estimates indicate that an additional 30 to
40 lakh tones of rice will be required by 2020 depending on the growth
rate of total expenditures. Given the problem of poverty and malnutrition,
there is a need for direct interventions like PDS and ICDS. The rice scheme
in AP can be modified to make it cost-effective so that the poor can be
protected without straining investments in other sectors of human
development.
Regional Disparities
Andhra Pradesh is conventionally classified into three broad
regions,viz., Coastal Andhra. Rayalaseema and Telangana for comparisons
of the levels of development. However, there is significant heterogeneity
within the Coastal Andhra and Telangana regions. Therefore, in addition
to the conventional classification into three regions, it is found useful to
disaggregate them into six regions, viz., North Coastal Andhra, South
Coastal Andhra, Rayalaseema, North Telangana, South Telangana and
Hyderabad.This is done on die basis of agro-climatic conditions, level of
urbanisation and industrial development.
Whether one follows the conventional or the more disaggregated
classification, the regional disparities in the levels of socio-economic
development in the state have come down over the last 50 years.There has
been a significant decline in disparity in the levels of agricultural
development, measured as the value of crop output per hectare, between
Coastal Andhra and Telangana, especially between South Coastal Andhra
30
Andhra Pradesh Development
and North Telangana. This is because area under irrigation, including from
canals, expanded at a faster rate in Telangana and green revolution
technologies have been adopted widely.
Agriculturally developed regions in the state like South Coastal
Andhra had a low level of industrialisation in the initial period.Also,
industrial development has been faster in the agriculturally backward
regions like South Telangana, Rayalaseema and North Coastal Andhra. As
a result, die regional disparities in per capita domestic product, consisting
of income from agriculture as well as non-agricukural sources, are now
lower than when income from agriculture alone is considered.
Social development, e.g.,education and health are basically
dependent on public investment, the impact of which is quicker and widely
spread compared to investment in physical infrastructure.Consequently,
the regional disparities in literacy, primary education and health facilities
are not as marked as in other sectors.These disparities, particularly in the
case of literacy and education, have come down substantially because of
the special programmes launched by the government during the 1980s
and the 1990s. The regional differences in die incidence of rural poverty
have also been reduced significanrly.The Information Technology(I.T)
■-^r^which was initially concentrated in Hyderabad is now spreading to
centres in different regions of the stare.
in the levels oi
w^uen(js notwithstanding, the regional disparities
South Coastal Andhra, becau^ • nificant in the scate.For example,
irrigation, continues to occupy the top
of assured sources of
output per hectare, followed by North TelangTHa
agricultural
Andhra. Rayalaseema and South Telangana are at the bottom
___ „
insufficient irrigation coupled with low and erratic rainfall. Moreover, well
irrigation is predominant in Telangana and Rayalaseema, entailing high
cost of power for pumping water, besides exposing them to weather shocks
and shortages of drinking water.
The index of average per capita Gross Domestic Product for the
period 1995-2000 (with state average as 100) ranged from 91 for North
Telangana to around 106 for South Coastal Andhra and 122 for Hyderabad
& Ranga Reddy.The incidence of rural poverty in North Coastal Andhra
in 1993-94 was way above that for North Telangana. The literacy rates for
Telangana (excluding Hyerabad) and North Coastal Andhra were well below
that for South Coastal Andhra/The drop-out rates at primary education in
2000-01 for boys and girls were quite high in Telangana, especially for
S.C.s and S.T.s.In respect of health care, private sector is concentrated
mainly in the developed districts, so that the state policy aimed at
Overview
31
encouraging privatisation has benefited the developed districts accentuating
the regional inequalities in the availability of medical facilities.The Child
mortality rates are quite high in North Coastal Andhra, Rayalaseema and
South Telangana,
The develpment experience of A.P. clearly brings out that stepping
up public investment in physical and social infrastructure has an immense
potential for reducing regional disparities in rhe levels of development.
The gap between the ultimate irrigation potential from major and medium
irrigation projects, which can be undertaken only through public
investment, and the potential actually created so far is quite high for the
drought prone regions of Rayalaseema and TelanganaTublic investments
for undertaking the remaining projects and for the speedy completion of
the on-going ones together with rehabilitation of existing tanks by involving
Water Users’ Associations holds a great promise for further development
and for mitigating the severity of droughts in these regions.Public
expenditure on health and education needs to be stepped up substantially
focusing on the less developed areas.
Small and marginal farmers being preponderant in these regions
require special public support towards the provision of cheaper power,
better access to quality inputs and institutional credit. Further, the overall
working of the womens Self-Help Groups and Panchayati Raj institutions
is found to be relatively better in the developed regions. The less developed
regions, therefore, need special attention for empowering the weaker sections
and the community institutions.
6.
ENVIRONMENT
Environmental concerns are among the policy priorities in A.P.
—-..briefly look at the status an.d strategies relating to environment in
four areas-vn.,,^^
water management, mining, industrial pollution
and urban environment.
It is estimated that the cost of soil degradation alone is about 1.2
per cent of its GSDP. That is, by checking degradation of soil the level of
GSDP can be raised by 1.2 per cent. The state's experiments with watershed
development programme to promote dry-land agriculture and the irrigation
development programme arc the most innovative in the country. Watershed
development under the new guidelines, in general, has an overall positive
impact on environment. However, groundwater tables are depleting at an
arming rate. The de facto privatization of groundwater and subsidized
power supply are the main culprits. There has been a neglect of minor
32
Andhra Pradesh Development
Irrigation sources like tanks. Shortage of drinking water has accentuated
and quality of water has declined over time.
About 19% of cultivated area is degraded. There is no relation
between development and degradation across districts. However, incidence
of degradation seems to be more in less irrigated areas. Composition of
livestock is shifting in favour of small ruminants. The declining number of
cattle means lower ratios of organic to inorganic input (fertilizer) and higher
dependence on tractors for cultivation. Both these practices would have an
adverse impact on the environment. In A.P. about 38% of forest area is
degraded, as against 25% for All India. Overexploitation of fish rendered
fishing unsustainable and aquaculture created serious environmental
problems.
Mining could lead to irreversible damages if follow-up action is
nor taken after the mining activity is completed. The Vision document
proposes to issue the safety bonds for the future mining activity. In industrial
sector, most polluting industries have attracted highest investments. Water
bodies are the worst affected. The estimated annual loss per household
affected is about Rs.36000. The main reasons for industrial pollution
include weak institutions (implementing agencies), lack of cost effective
technologies, political interference, nexus between industry, bureaucracy
and politicians, absence of awareness and weak bargaining power of the
victims. In urban areas, water supply shortage is around 36%. Among the
regions, Rayalaseema has the highest shortage (43%) of water supply.
Sewerage facilities are too little to meet rhe demand.
An integrated approach is needed for water resources management
in the state. An appropriate strategy should integrate institutional
approaches with market principles. Since institution^/ innovation (Water
user associations) is already in place for canalirrigation, it is time now to
implement volumetric pricing. TAere is a need to de-link water rights
from land rights in order to ensure equity and sustainability.
In the case of land and forestry, watershed approach and Joint
Forest Management are crucial for protecting the environment. The critical
issue is sustainability of these programmes. Although watersheds have shown
positive economic impact, the social issues are missing. More participatory
approach and involvement of women would lead to sustainability of
watershed development approach. In the case of JFM, the department is
focusing on high income areas like timber. Low value products constituting
sources of livelihoods for the poor have low priority. Customary rights of
the tribals on podu (shifting cultivation) have to be recognised.
Industrial pollution can be reduced by awareness building and
promotion of environment friendly technologies through proper
Overview
(dis)incentive structures. Rekindling the rural industrialization process
would go a long way in addressing the problem of urban congestion.
Demand management of urban amenities such as drinking water
should be given top priority. Efficient provision of services fostered with
appropriate pricing would result in their efficient use. Solid waste
management is another area of importance. Appropriate institutional'
arrangements need to be worked out to collect, recycle and dispose the
waste.
Awareness and involvement of the civil society is a precondition
for checking environmental degradation. Environmental movements would
have a discerning impact in this regard.
7.
DECENTRALISATION
Keeping in view the main objectives of the 73rd Constitutional
Amendment Act, the Government of A.P. has passed the A.P. Panchayat
Raj Act 1994. The actual performance so far in terms of genuine
decentralization / devolution to the local bodies is far from satisfactory. In
the functional domain, the present status in AP shows that it transferred
functions in respect of 16 subjects of which 5 subjects with funds and
only 2 subjects with functionaries are transferied to the local bodies. The
performance of AP in this respect is much lower than that of Karnataka,
Kerala and West Bengal. Moreover, a majority of the line departments in
AP have not been brought under the control of PR bodies. Only the
relatively less important functions have been transferred to the local bodies.
The District Rural Development Agency (DRDA), which commands
sizeable resources, functions independently of the PR bodies. Similarly,
Corporations, like AP Scheduled Castes Corporation, AP Backward Caste
Corporation, AP Women Development Corporation work independently
of PR bodies in the state.
The panchayats have no financial autonomy either in raising
financial resources or in deciding on the allocation of funds across different
sectors. Funds for centrally sponsored public works schemes like J RY form
the bulk of the panchayats budgets. The allocations to different activities
are generally decided by the central/state governments. The devolution of
funds to panchayats in A.P. is much less than in Kerala where around
40% of state plan funds are allocated to local bodies.
There are some structural aspects of AP PR system, which impede
the local bodies from functioning effectively. The State Government, the
Commissioner and the District Collector have been given powers under
various sections of the Act to control PR institutions at all the three levels.
- Media
RF_EC_6_SUDHA.pdf
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