Power of Skills Development on Inclusive Grow

G S Oinam *

Mechanism Before Project Launch:

a) case study
b) administrative and decision making skills
c) communication skills like presentation skills, negotiation skills and conflict management skills
d) strength, weakness, opportunities, threats (SWOT) analysis to understand the project plan
e) relocate or face the unexpected circumstance of a lay off vi) mentally one must be prepared to face the challenges and key pace with the hectic schedules.

On the Process: -

• Technology transfer: - environmental need assessment, energy optimization, trade process and handling taxation etc.
• Knowledge management:- It involves acquisition, retention, storage, distribution and use of knowledge in the organization.
• E- business:- Focus on enhancing efficiency of business function using electronic capabilities, integration of information and communication technology in business process spanning the entire value chain, electronic purchasing and supply chain management, handling customers' service and co-operating with business partners.
• Entrepreneurship: - Initial public offering (IPO) where they might able to innovate and grow with the money flowing in (venture capital)
• Event management:- three point must be keep in mind a) project must be meet client requirement b) project must be under Budget and c) project must be on time.

Theoretical Derivatives of Growth: In the target growth model, generally price is not considered; therefore, some of the economist are view that the model is inflationary. However, economic theories are often devoid from the complexities of actual economic activities. It is the Actor who actually controls the economic variables. Confidence of real actor is very important. Price is determined by demand and supply of commodities. Price will be fall when demand falls.

Use substitute items if the price rises; for example if the price of coffee is raised then drink tea. Increase of wages is also another factor of price rise. For example, 6th pay implementation benefits the employees for some time however, increase of salary automatically absorbed to price rises within a short period. RBI's bank rate (monetary policy), price stability and price support, wage rate controls are some of the means to control inflation in short period. Most important factor of inflation is shortfall on production (supply side)

To increase production and accelerate growth, skill development is an important thrust area, which is both theoretically and practically sound. Alfried Marshall's 'Low of Diminishing Returns' reveals 'with an increase in the labour and capital, causes in general, a less than proportionate increase in the amount of produce raised, unless it happens to concede with an improvement in the art of cultivation i.e. skills development, with a fall of marginal return, marginal cost increases.

In Keynesian theory, economic growth can be accelerated by changing the saving rate and improve technology. Again, saving rate and technology can be change by government intervention without considering price. By skills development, we mean application of modern technology, new ideas and new thoughts etc.

In this year growth model, people have to save money for next year investment. Do not buy luxurious items this year because price of luxurious items like gold, ornament, car etc. will be rise due to higher taxes.

In the growth model, we will encounter the following terms:
1. Lord Harrod and Mr. Domar (Harrod- Domar Model) - personal consumption.
2. Keynesian based model- Gross saving.
3. Saving rates- gross investment
4. Capital output ratio or capital productivity- Net investment, or capital accumulation.
5. Capital stock- Depreciation and 6. Gross Domestic Product (GDP) - Dynamic Model.

Keynesian growth model were developed to explain business cycle as a short term phenomenon. As such theory attributes a major role to aggregate expenditure (demand side). Regarding the supply side, they assumed that there is unemployment, production responds fast to increase in aggregate demand because capital and labour in unemployed.

Key's Aggregate Demand (AD) = Consumption expenditure (c) +Investment expenditure (I) + government expenditure (G) + Export (X) – Import (M) = Gross Domestic Product (GDP)
In Macro economic equilibrium, Aggregate Supply (AS) = Aggregate Demand (AD), or Saving (S) = Investment (I).
Investment has two impacts (1) on expenditure (in short run) & (2) on capital (in long run)
Harrod-Domar model suggested that the country's economic rate of growth is depending on the level of savings and productivity of investment (capital output ratio). Suggesting that increased saving ratio and increase in capital output will yield higher rate of growth. In another words, the equilibrium growth rate of output is equal to the ratio of marginal propensity to save and capital output ratio. This is a significant result. It tells us how economy can grow such that the growth in the capacity of the economy's output to produce is matched by the demand for the economy's output.

India is experience of structural changes and sect oral growth model. The sartorial growth model states that countries are assumed to pass through the primary sector or primary production stage (raw materials through the land resources, agriculture etc.) Secondary sector or secondary production stage (manufacturing). Third, Tertiary sector or tertiary production stage (goods and services, banking, education, trade etc.).

In other words, theoretically, as an economy develops, its income will rise yielding an increased demand for agricultural goods however, due to their low income elasticity of demand, at a proportionately lower rate than income. With that being said, the demand of manufacturing goods will have a higher income elasticity of demand (when income rises, price raised) and thus as income grow further, the demand for the goods will grow at a proportionately higher rate- allowing the secondary sector to grow.

As income increases, people will increase their consumption of services as those have an even higher income elasticity of demand; causing / allowing the tertiary sector of the economy to grow and develop.

Some other factors of growths are Export Led Growth, Import Substitution, Commercial Loans, Micro- Credit System, Foreign Direct Investment, Sustainable Development ( develop without posing detrimental effect on further generations and attempt to limit the use of non renewable resources to move toward ideal growth ) and Fair Trade Organization (FTO ).

Fair Trade organization aims to generate fair price for all goods they produces- enabling them to sustain a reasonable standard of living as price take care of production cost and allows surplus reinvest. Subsidies, Public distribution system are part of fair price organization. In big cities of India, private companies are also organizing fair price shop like Big Bazaar, Big Apple etc. Indian fair price organization will be helpful to economy growth if effectively implemented distribution system from factory outlet to direct rural consumers encouraging private participation.

The concept of economic planning, the world owes to former USSR. After the Red Revolution of 1917, former USSR adopted for sometimes in the year 1921, new economic policy. It was primarily with a view to have some respite from the violent disturbances depression. In India draft outlay of the first five year plan was submitted in July 1951. Prime Minister, Jawaharlal Nehru was the first Chairman of the Planning Commission of India. Modern planning are now, using various tools of electronics, finance, management, mathematic, statistics equations etc.

Today, researches have imported a large number of the new terms and have developed economics in various fields. Even layman, have developed immense interest in this. David Richardo, great economist had almost got no formal education and he was reluctant to writing even his friend James Mills suggested and persuaded him. His first publication of 'the principal of political economy and taxation' was assumed to be mainly agricultural.

The theory of comparative cost which is continues to occupy a prime place in the theory of international trade. Prof. Mahalanobis, the architect of 2nd five year plan of India was statistician. P. Chidambaram's export-Import (EXIM) policy was famous. Any individuals interested are encouraged to be an economist if individuals' idea was acceptable by people.

Our people like good performance, not mare certificate they have possess from the universities. Finally, Pranab Mukherjee's Inclusive Growth is a new hope to establish a' Modern State' in a plural and complex society like India. Times of India, New Delhi printed the symbol of elephant on the front page, as removal of obstacle and bear of good fortune on the next day of Budget presentation.

Foot Note of the Union Budget 2010-11: This budget has many visions; however, Budget does not affect any benefits to low income private employees and lower middle class citizen in terms of budget provision and taxation. Pranab Mukherjee's Budget puts money to every section of vote bank even there is no State General Assembly Election in this year except Bihar (likely election).

Why should not Opposition Party attack? However, people do not complain because the Budget is targeting growth, fiscal consolidation and social reforms realizing the immediate needs to target growth and food insecurity. There is no special packages of north east despite of various scheme required for development; realizing the activities of Manipur State government in particular, a whopping crores of Rupees allocated fund remain unused due to untimely implementation of schemes and unable to achieve target; and blaming the result to half true internal security crisis and militant attacks.

Growth targeting Union Budget will experience Manipur state government how the economic activities will run fast and what are the methods required to achieve the target. In other word, there has been welcome extra investment in Agriculture, commercial loan, banking facilities and skills development. On the next year Union Budget, Manipur will ask a special scheme to absorb half of the educated unemployed persons of the region.

Concluded...