Effects of Confirmation Bias on Consumer Attitudes Toward GM

Effects of Confirmation Bias on Consumer Attitudes Toward GM Literature Review: Evaluating the Effects of Confirmation Bias on Consumers Attitudes Toward Genetically Modified Foods Genetically modified foods (GMFs) have been a part of American life for more than twenty years, with the USDA approving the first commercial crop in 1994 (Bruening Lyons, 2000). Since then, genetically modified (GM) crops have boomed, with an estimated 70% of processed foods on grocery store shelves containing GM ingredients (Chrispeels, 2014). The United States Department of Agriculture has recognized many benefits of GM crops, including greater yields, increased nutritional value, and better seed quality (Fernandez-Cornejo et al, 2014). Given the current global food climate, with hunger and starvation still being prevalent in many countries, this is an important benefit. Since the introduction of GM crops into the food chain, a lot of questions have been asked regarding their safety and much research has been done in this regard. A 2014 meta-analysis of the previous ten years of data indicates that GMOs do not pose any direct threat to human health (Nicolia et al, 2014). Indeed, most scientists (Funk et al., 2015) and the World Health Organization (2015) believe that GM foods are safe to eat. Despite this data, only just over a third of Americans believe GMOs are safe for human consumption (Funk et al, 2015) and many will spend more for foods that they know are non-GMO (Fernandez-Cornejo et al., 2014). This indicates that GM foods continue to be a contentious issue, and it is one that is often played out on social media (Stevens et al., 2016). Food safety is an inherently emotional issue (Anderson 2000), and contentious issues, particularly emotional ones, are often hyped up in the media (Stieglitz Dang-Xuan, 2013). When consumers go to the media seeking information on the emotionally charged issue of GM food, they will find that much of information that is easily accessible to them is negative and centered more on popular opinion that scientific facts (Mahgoub, 2016; McCluskey, Swinnen, Vandermoortele, 2015). The medias negative portrayal of GM food has been linked to consumers negative perception of the products (Marques, Critchley, Walshe, 2014; Vilella-Villa Costa-Font, 2008). Both public opinion and scientific data play a part in how governments and regulatory bodies develop their policies, highlighting the importance of understanding the evidence and what shapes consumer attitudes toward GMOs (Druckman Bolsen, 2011; Page Shapiro, 1983). Public opinion is formed from the attitudes of individuals (Katz, 1960). Hostility to GMOs can lead to limiting development of research about them (e.g. Ceccoli Hixon, 2012) and restrict or ban the use of the technology (e.g. Siegrist, 2000). The success of GMO foods on the market depends on public opinion (Moschini et al, 2005). Facebook is the most popular social media platform in the United States. Nearly 80% of online Americans use Facebook, and of those, 76% use it every day, and 55% visit it several times a day (Funk Rainie, 2015). Many American adults (62%) get their news from Facebook and nearly a fifth (18%) do it often (Gottfried Shearer, 2016). Facebook offers near-instantaneous access to news and information in users newsfeeds, offering a greater ease of selectivity over more traditional media sources (Westerwick et al, 2013). However, the selectivity is biased towards users preexisting beliefs and attitudes, and serves to limit the amount of information available to them through the use of their algorithm that provides messaging consistent with previous likes of the user, as well as web searches, thus increasing the effect of selective exposure (Bakshy et al., 2015; Pariser, 2011), and an effect to which most people may be unaware of (Powers, 2017). This leads to tailoring a news feed that is i ncreasingly fragmented and polarized to the existing attitudes of the individual user (Westerwick et al, 2013). Facebook also elicits quick responses from users by way of how information is presented and does not require the user to put much cognitive effort into assessing its veracity. Users will often accept the first message they encounter without doing any further investigation (Flanagin Metzger, 2007; Chen et al, 2015), engaging in what Petty and Cacioppo (1986) termed peripheral processing. This is common in user assessment on online media (Fogg et al, 2003) and when making food-related decisions (Frewer et al., 1997). In this type of processing, people rely on simple cues (Andrews et al., 2011; Walters et al, 2012) and cognitive heuristics, such as confirmation bias, to evaluate information and form an attitude about it. This is particularly true when people want to decide about an issue that they do not know much about and are uncertain about the risks, benefits, and consequences (Tversky and Kanehan, 1975). With peripheral processing, no higher-order thinking, or central processing, goes into their formation of opinion. While engaged in peripheral processing, people will discredit the attitude incongruent information off-hand or will alter their perception of it so that it fits into their pre-existing schemas (Petty Cacioppo, 1986; Festinger, 1957). People generally prefer messages that fit with their pre-existing beliefs, and regardless of how much importance they attach to an issue, they are not likely to spend much time looking for credible information (Westerwick et al, 2013). The problem with engaging in peripheral processing when encountering messages on a platform like Facebook is that the credibility of the information they are accessing is often not verified (e.g., Moody, 2011) and people rarely verify the credibility of this information (Metzger, 2007). The information may be based on inferior data, is often driven by personal opinion (Ennals et. al, 2010), has no real standards for quality control or regulatory controls, and can be easily altered (Metzger et al, 2013). As mentioned earlier, confirmation bias is a cognitive heuristic that may be utilized when people are engaged in peripheral processing. The confirmation bias is a tendency for people to pay more attention to and attribute greater importance to information that is congruent with what they believe while overlooking or discrediting information that does not fit their preexisting beliefs (Klayman and Ha, 1987). Confirmation bias with regards to media exposure is well documented, with the first instance noted over seventy years ago (Lazarsfeld et al., 1944), however, the effect of confirmation bias on user attitudes is not consistent across different types of messaging. Political messaging and confirmation bias are well documented, but this is not the case for health messaging. Westerwick et al. (2013) found that people are generally more likely to look for credible information sources when it comes to their health. Alternatively, confirmation bias may be more pronounced if media coverage about an issue is negative, as could also be the case with GM foods (Lusk et al, 2014; Slovic, 1987). Given the impact of food safety on ones health, the question arises as to the role that confirmation bias has in consumers attitude formation toward GMOs, and this has not yet been adequately addressed by existing research. Research in this area would contribute to the knowledge of how to best design messaging to positively persuade public opinion regarding GMOs. Purpose and Objectives The purpose of this study is to examine the impact of attitudinally congruent and attitudinally non-congruent messaging concerning GMOs on how consumers self-evaluate GM foods under the Elaboration Likelihood framework. To accomplish this purpose the following objectives were constructed: Collect data on the pre-existing knowledge and beliefs of the audience about GMOs. Compare the perceptions of attitudinally congruent and attitudinally non-congruent GMO messaging. Compare the beliefs and attitudes of consumers pre and post-message exposure. References Andrews, J. C., Burton, S., Kees, J. (2011). 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Features of the Indian Economy

UNIT 17 FEATURES OF THE INDIAN ECONOMY Structure 1 7. 0 Objectives 17. 1 Introduction 17. 2 Features of the Indian Economy 17. 3 Growth and Development 1 7. 4 Mixed Economy 1 7. 5 Demographic Transition 1 7. 6 Sectoral Composition of GDP 1 7. 7 Employment Structure 1 7. 8 Inter-Governmental Fiscal Relations 17. 9 Let Us Sum Up 17. 10 Key Words 1 7. 1 1 Answers to Check Your Progress Exercises – – 17. 0 OBJECTIVES After going through this unit, you will be able to: identify the important features of the Indian economy; distinguish between economic growth and economic development; explain the pattern of demographic transition in India; xplain the sectoral composition of the Indian economy; and explain the pattern of employment in India. 17. 1 INTRODUCTION Let us begin with the word ‘economy'. It denotes the operations and management of the economic system – the activities related to production of goads and services, consumption, investment, exchange of g d an d services within the geogmphical territory, and exports and imports with rest of the world. You may have observed that production of goods and services requires inputs such as labour, capital (machineries, buildings, etc. ) and raw materials. The inputs are available in limited quantity, i. e. , there is a shortage of inputs. When these inputs are used in the production process, they need to be paid some reward. For example, if you want to employ a unit of labour you have to pay some wage to himher. Similarly, building can be hired by paying some rent or money can be borrowed by paying some interest. Ultimately utilization of inputs involves some costs. Thus the objective before the economy is to utilize the scarce resources efficiently so that production of goods and services is maximized and cost is minimized. Economic Development Now let us try to explain the structure of the Indian economy. The word structure, as you know, implies the way in which something is organised or put together. Thus we should look into the way the Indian economy is organised. AmrdinglyY we will find out the major segments or sectors of the Indian economy and the manner in which'these sectors interact with one another. In order to keep our discussion brief we will focus on the developments in the Indian economy dukg the post-independence period, particularly the period since five-year plans started in India. To begin with, we find out the important features of the Indian economy. 17. 2 FEATURES OF THE INDLAN ECONOMY At the time of Independence the Indian economy was stagnant and highly underdeveloped. Agriculture was the backbone of the economy but agricultural activities were undertaken through obsolete technology. Industrial sector c o n t r i i very little to gross domestic product (GDP). In order to give a direction to the economy the government initiated economic panning in the form of Five Year Plans in. 195 1. Over the years the economy has witnessed increase in GDP, the composition qf GDP has changed, standard of living of people has improved, and there has been ypgradation in level of technology. The important features of the Indian economy are as follows : 1) The Indian economy is a developing economy. It has not yet reached the level of economic development seen in America and Europe. – 2) The 1ndid economy is a mixed economy in the sense that both private sector and public sector coexist and participate in the production process. 3) It is c-zed by high population density and population growth. ) About one-third of the population live below poverty line. ‘Vicious cycle of poverty' operates in many sectors of the economy. 5) There is high level of unemployment and underanployment In addition, there is ‘disguised unemployment' in the agricultural sector. 6) The level of technology used in production process is low in many sectors. Modern technology has not been adopted in all sectors ofthe economy. 7) ~ h aise a shortage ofphysical and economic inhstmcture. ~ransporhti&(nm ak, railways, airlines), power (electricity, gas), and communication (telephone, Internet) have not reached all parts of the country. Even some parts of the country ‘ do not have provisions for schools, colleges, hospitals, and safe drinking-water supply- Let us discuss some of the above issues in detail. 17. 3 GROWTH AND DEVELOPMENT Economic development is a broader term than economic growth Economic growth usually means the growth in production of an economy. On the other hand, economic development includes other fsctors such as litemcyy health, child mortality rate, equality, regional balance, infbtmchrre, etc. Country GDP Per Capita GDP Per Capita (PPP US$) (annual growth rate) 1999 (1 990-99) United States 3 1,872 2. 0 United Kingdom 22,093 2. 1 France 22,897 1. 1 Mexico – 8,297 1. 0 l3mil 7,037 1. 5 China 3,617 9. 5 * India 2,242 4. 1 – — – Bangladesh 1,483 3. 1 Sri Lanka 3,279 4. 0 Nigeria 853 -0. 5 Tanzania 501 -0. 1 * The difference between economic growth and economic development is a subtle Features of the one. Let us take the example of a child. As a child grows her weight and height increases. Simultaneously, her capacity to leam, recognize and distinguish between objects develops. Thus growth is not sufficient; we need development also. Similarly, in the case of the Indian economy economic growth is not enough; we need economic development. We need better health of people, education for all, reduction in inequality among sections of people and regions, reduction in infant mortality rate (IMR), access to drinking water for all, etc. The government has to devise policies and allocate government expenditure so that these facilities are available to all. Thus the additional income generated in the economy reaches the backward regions and the poorer sections of society. To achieve economic development we need economic growth. In a stagnant economy, where there is no economic growth, realization of economic development is dificult. Table 17. 1 India in the World Ecaoomy – – – – Source: . World Development Report Measurement of the level of economic development is dificult, because it does not depend upon a single factor. There are a number of indicators of economic development. These indicators could be quite varied and too many. In Table 17. 1 we have given the per capita GDP along with annual growth rates of some of the economies. In order to make comparison possible we have given these figures in a comparable form (in purchasing power parity US$). You can see that Indian economy is not comparable to developed economies. The per capita GDP in India is much lower than in developed countries. However, it has a higher growth rate compared to others. Note that some of the countries have very low GDP per capita and have experienced decline in it over time (see, Nigeria and Tanzania, Economic Development Apart fiom low per capita income India is far below the developed economies in terms of development indicators. Some of these indicators are consumption of electricity, literacy rate, access to safe drinking water, empowerment of women, etc. United Nations Development Programme (UNDP) brings out a ‘human development index' by combining several indicators of development such as life expectancy, education, per capita income, and empowerment of women. According to Human Development Report 2001, India ranks 1 15 out of 162 countries in terms of human development index A positive feature of the Indian economy is that it is not stagnant; it is developing. It is one of the fastest growing economies in the world. There have been improvements in life expectancy, literacy, and availability of infrastructure. 17. 4 MIXED ECONOMY As mentioned earlier the Indian economy is a mixed economy where private sector and public sector coexist and contribute to the production process. Some of the activities such as law and order, justice and defence have to be performed by the government. However, the government enters directly into production of goods and services which the private sector can also produce. The extent to which the government should involve itself in the production activities is a controversial issue. During the decades of 1960s and 1 970s the Indian government produced whatever it could and intervened in the production decisions (what to prodae, where to produce, what technology to use) of the private sector through a rigorous licensing policy. We will discuss about the economic policy changes in India later in this block. Let us look into the reasons for undertaking production activities by the government. A producer in the private sector (usually motivated by higher profits) takes the risk of setting up an industry, purchases inputs, produces output and sells the output in the market for a price. Imagine a situation where a producer produces a commodity or service but cannot sell it for a price because consumers cannot be excluded fiom its consumption. You may have observed that in certain cases the benefit derived by you is in no way going to obstruct others from deriving its benefit. An example of the above could be the provision of streetlight by the local government. Thus, if your neighbour puts a light in h n t of her house, you enjoy the benefit that the front of your house also gets lighted; and you do not have to pay for it. In this case there is a market failure in the sense that your neighbour cannot charge you for the benefit you derive. Thus she does not have any incentive to put a bulb in front of her house. On similar logic you also do not put a bulb in h n t of your house, which requires street lighting by the government. Secondly, inbtructure such as road, ports, dams, etc. , require huge investment but the rate of return is very low in the short run. Thus no private entrepreneur would be interested in providing roads, which prompts the government to come forward. Thirdly, there are natural monopolies such as electricity generation, railways, etc. , where a single producer can serve the entire market. Fourthly, there are certain production activities which have so much social benefits that the govemment should produce these goods and services (e. g. , schools and colleges, hospitals, banks, etc. ). Fifthly, the government may enter into production activities to fblfil some other social objectives instead ifprofit motive. These objectives could be employment generatiorl, regional balrncc, and social i~plifot f the downtrodden. Thus there is a strong case for public sector production and Indian planners Year Share of Public Sector Share of Private Sector 1 960-61 9. 9 90. 1 1970-71 13. 7 86. 3 1980-8 1 19. 5 80. 5 1990-9 1 25. 1 74. 9 1998-99 25. 1 74. 1 recognized it fbm the very beginning. We observe the presence of public sector Features of the in construction, hotels and restaurants, transport and communication, railways, . Indian ~conomy banks and other services. Share of Public and Private Sector in GDP Let us look into the share of public sector in the GDP of M a (s ee Table 17. 2). In the financial year 1960-6 1 about 10 per cent of GDP originated fiom the public sector. In the Five Year Plans @e government expanded the role of the . government through more and [email  protected] investment in various activities. As a result,. the share of public sector in GDB increased to nearly 14 per cent in 1970-7 1, about 20 per cent in 1980-8 1 and 25 per cent in 1990-91. However, many restrictions on private sector have been removed during the decade of the 1990s. As a result, the private sector has increased rapidly and the share of public sector has remained around 25 per cent. Check Your Progress 1 Note: 3 Use the space given below for your answers. ni Check your answers with those given at the end of the Unit. 1) Bring out the important fbtures of the Indian economy. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 2) Distinguish between growth and development. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 5†¦. .. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ Economic Development 3) What are the reasons for the gov ernment to enter into production activities? †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 17. 5 DEMOGRAPHIC TRANSITION India accounts for 2. 4 per cent of the world surface area but it has 16. per cent of the world population. As per the 2001 census the population of India in 2001 was 102 crore. Thus India is the second country in the world to cross 1 billion mark, the first one being China. However, keeping in view the f act that China has a much lower population growth rate (1. 4 per cent per year) compared to India's 1. 93 per cent per year, India is likely to overtake China within a few decades. Change in the size of population takes place through three demographic events: birth, death and migration. In the Indian economy migration has played a negligible role in population growth. Thus population growth is largely due to higher birth rate than death rate. In an economy there is a pattern in which demographic transition takes place. Such transition can be divided into three stages. It has been observed that when the level of development is low in an economy both birth rate and death rate are high. As a result population growth rate is not that high. This is the first stage of demographic transition. When economic development takes place the economy moves on to the second stage – death rate declines due to availability of health facilities and medicines but birth rate continues to remain high. This is the stage when there is a wide gap between birth rate and death rate, and population increases sharply. With M e r economic development, the economy moves on to the third stage -both birth rate and death rate are low. Consequently, population growth rate is again low in the third stage. All the developed economies are in the third stage of demographic transition. Table 173 I Demographic Transition in India Year. Population Birth Rate Death Rate Population Life (in crore) (per 1000) (per 1000) Growth Rate Expectancy (% per annurn) (in years) 1950-51 36. 1 39. 9 27. 4 1. 5 32. 1 1960-61 43. 9 41. 7 22. 8 1 . % 41. 3 1970-71 54. 8 36. 9 14. 9 2. 20 45. 6 1980-81 68. 3 33. 9 12. 5 2. 22 50. 4 1990-91 84. 6 29. 5 9. 8 2. 14 58. 7 2000-01 102. 7 25. 8 8. 5 1. 93 62. 5 – – In the case of India during the pre-independence period both birth rate and death Features of the rate were quite high. As a result, population grew at a lower rate. As you can Indian Economy see fro m Table 17. 3 population growth rate during 1950-5 1 was only 1. 25 per cent per mum. However, population growth rate accelerated afterwards and 4 i reached a peak during 1980-81. A positive sign is that in the recent census the annual population growth rate has come down below 2 per cent. Some of the states such as Kerala, Tamilnadu and Punjab have reached a reasonably lower birth rate. However, in some of the major states such as Uttar Pradesh, Bihar, Rajasthan and Madhya Pradesh population growth rate is very high. Life expectancy indicates the number of years a newborn child is expected to . . swvive. It has increased from about 32 years in 1950-5 1 to more than 60 years at present. As a result, the percentage of the aged people in India has increased. On the other hand, a decline in birth rate has resulted in a decline in the percentage of children in the country. 4 17. 6 SECTORAL COMPOSITION OF GDP Let us look into the composition of GDP in India and the changes in it over h e . The composition of GDP in India has undergone substantial changes since 1950- 51. The share of agriculture has declined while that of industrial and service sectors has increased. Economic activities can be divided into three categories: primary activities, secondary activities and tertiary activities. Primary activities include i) agriculture, ii) fore and logging, and iii) fishing. Secondary activities include i) mining and quq& ii) d t u r i n g , iii) electricity, gas and water supply, and iv) construction Tertiary activities include i) trade, ii) hotels and restaurant, iii) transport (railways, road, air, waterways), iv) storage, v) communication, vi) banking and imurance, vii) real estate, and viii) public administration and defence. The tertiary activities are also called senrice activities. , Table 17. 4 Sectoral Composition of GDP Source: National Accounts Statistics of India Economic Development On the basis of Table 17. 4 we make the following observations: Agriculture and allied activities (p* sector) contributedmore than half of the GDP in 1950-5 1. The share of agriculture and allied activities has continuously declined over the years and contributed only 24. 2 per cent in the year 2000-01. Of this, agriculture contributed 22. 2 per cent while forestry and logging, and fishing contributed about 1 per cent each. The share of services sector has increased from 28 per cent in 1950-5 1 to 48. 5 per cent in 2000-01. For the year 2005-06 the share of services sector is estimated to be 54 per$ent of GDP. Thus services sector contributes more than half of the GDP at present. The share of secondary sector has increased fiom 14. 3 per cent in 1950-51 to 27. 3 per cent in 2000-01. Subsequently it declined to 26. 1 per cent in 2005-06. The decline in the share of the primary sector in GDP has taken place as the secondary and tertiary sectors have registered higher growth rate than the primary sector. In fact, the government has attempted to promote the secondary and tertiary sectors. If we look into the sectoral composition of GDP of the developed economies, we find that primary sector contributes less than 5 per cent of GDP. Most of the GDP comes fiom the service sector (about 70-80 per cent). So the developments in the Indian economy can be considered to be a positive aspect. A problem area, however, is the composition of employment, as we will see in the next Section. It is worth mentioning that of the 27. 3 per cent share in 2000-01 manufacturing sector contributes 17. 2 per cent to the GDP. The remaining 10. 1 per cent comes tiom mining and quarrying (2. per cent), electricity, gas and water supply (2. 5 per cent) and construction (5. 3 per cent). Remember that manufacturing, and electricity, gas and water supply constitute the industrial sector. In the industrial sector we have both private sector and public sector on the basis of ownership. Very often another distinction is made: organised sector and unorganized sector. In fact, as per the Industrial Act 1 95 1 all the industries employing more than 10 workers if production is through use of power (20 workers if production takes place without use ofpower) are ~lequiredto register with the RegisErar of Indu. These industrial units tidl under the category registered-sector or organized-sector. The remaining industrial units, mostly small scale, are termed unorganized sector. In the year 2000-01 the unorganized sector contributed 6 per cent to GDP compared to 1 1. 2 per cent by the organised sector. In the year 1950-5 1 both organized and unorganized sectors contributed almost equally to GDP at 4. 5 per cent each. Period National Per Capita Income Income First Five Year Plan (1 95 1-56) 3. 6 1. 8 Second Five Year Plan (1956-61) 4. 1 2. 0 Third Five Year Plan (1 96 1-66) 2. 5 0. 2 Fourth Five Year Plan (1969-74) 3. 1 . O Fifth Five Year Plan (1974-79) 5. 0 2. 7 Sixth Five Year Plan 1980-85) 5. 4 3. 2 , Seventh Five Year Plan (1985-90) 5. 8 3. 6 Eighth Five Year Plan (1 992-97) 6. 7 4. 6 Ninth Five Year Plan (1997-2002) 5. 4 3. 5 Features of the . Indian Eeonomy Table 175 Annual Growth Rntes (per cent per mum, 1993-94 prices) Source: Economic Survey 2001-02 From Table 17. 5 we observe that f or the period 1950-75 the average annual growth rate of national income was quite low (around 3. 5 per cent). On the other hand, during thi period 1975-2000 the average annual growth rate has been around 5. per cent. A similar trend is observed in the per capita income of India Per capita income is defined as national income divided by total population of the country. It is obtained by subtrachg population growth rate h m growth rate of national income. We should mention that before 1975 growth rate in national income was relatively lower while population growth rate was higher. As a result, per capita income increased at a very low rate (a little over 1 per cent per annum). On the other hand, after 1975 growth rate in national income was higher while population growth started slowing down. Consequently, per capita income increased at a relatively higher rate. During the period 1W-2002 per capita income h2ls i n d at around 4 per cent per mum. 17. 7 EMPLOYMENT STRUCTURE India being the second largest country in tern of population, it has a large labour – force (people who are able to and willing to work). In the year 1999-2000 there were 39. 7 crore employed workers in the country, which is about 40 per cent of the total population. The remaining 60 per cent population in the country are dependents. Thus for every worker there is 1. dependents. These dependents constitute children, aged and the unemployed. Because of high population growth rate the percentage of children in India is higher than in developed'countries. 13 Economic Devebpmnt Table 17. 6 Sectoral s om pod ti on of~rnployment Sector 1983 1993-94 1999-2000 Primary Sector Secondary Sector Service Sector . Total Total Employment (in crore) Agriculture has been the main source of employment in India. Dur ing the period 1950-70 it provided employment opportunity to more than two-third of the labour force. We mentioned earlier that the share of the primary sector (agriculture and allied activities) in GDP has declined over time in Indian economy. For the year 2000-01 primary sector contributed 24. 2 per cent of the GDP. Compare this with the employment share! In the year 1999-2000 nearly 60 per cent of the labour force were engaged in agriculture. We observe that the decline in GDP share of the primary sector is not accompanied by a corresponding decline in employment share. An implication is that workers employed in primary sector have a very low productivity than in secondary and tertiary sector. In the developed economies less than five per cent of the labour force is engaged in agriculture. It has been made possible by using modem technology and mechanization of agriculture. In some parts of India modem technology is employed in agriculture. However, a majority of farmers in India continue to we obsolete technology. A second implication is that there are too many people engaged in agriculture. In fiwt, agriculture has been a way of life for the households engaged in the agri- – activities. Very few children look for employment outside agriculture. And those who do not get employment anywhere else start working in the family owned land. As a result, often we see a feature termed ‘disguised unemployment' in Indian agriculture. It is a situation where a person is engaged llly in agriculture but his contribution is zero. It implies that if we take away the worlcer agricultural output will not decline. Suppose five pemons &working in a field and the output is 10 tomes of wheat. If we reduce the number of workers to four, then also output will remain the same. Thus the fifth worker worked in the field, but he is as good as unemployed, because his contribution is zero. It has been a policy of the government to shift the additional labour hxce in the ‘ agricultural sector to secondary and tertiary sectors. Recall that service sector contributes more than half of the GDP but provides employment to less than onefourth of the labour force. Thus the productivity of labour is higher in the service sector. 17. 8 INTER-GOVERNMENTAL FISCAL RELATIONS As you are aware India follows a democratic form of government, which is federal in nature. We have diffmt layem of govemment with specific powq and 14 Features of the Indian Economy esponsibilities defined by the Indian Constitution. Taking into account the amendments made so far the Constitution provides for three layers of government: Central, State and Local. In order to carry out its responsibilities the government at each level has been assigned powers to impose taxes on individuals and organizations based on criteria such as income, expenditure, production and certain economic transactions. The majo r source of revenue for the central government is income tax (on individuals and corporations), central excise, and custom duties (on imports of goods). On the other hand, there is a long list of taxes assigned to the states (including taxes on alcoholic beverages, agricultural income, and land) but the major source of tax revenue for the states is the sales tax. The tax base of the local governments is limited to local services and production. We have to keep certain things in mind while analyzing inter-govemmenth fiscal relations. One, there should be no fiscal overlapping so that the same tax should not be imposed by more than one layer of government. The Seventh Schedule of the Indian Constitution specifies the manner in which taxes are to be imposed by the central and state level govemments. Two, taxation power is assigned to a particular level of government keeping in view the geographical area oh which the impact of the tax is felt. Thus the tax categories assigned to the Centre are generally broad-based and their impact is felt beyond state boundaries. Three, the residual power with respect to taxation remains with the central government. While exercising such power the Centre introduced ‘service tax' during 1990s on the provision of specific services. Recall fiom Section 17. 7 of this unit that the share of s e ~ c essec tor in GDP is more than half and its share is increasing over the. Service tax is slated to be an important source of revenue in times to come. Four, imposition of taxes and hation of tax rates is a matter of political economy. In order to fbrther political interests governments have many times in the past waived taxes or excluded certain categories from taxation. A widely debated issue in this context is imposition of taxes on agricultural income, which is a state subject and state governments have invariably avoided taxation of rural rich. It has given rise to widespread tax evasion as individuals take advantage of the concession allowed to fanners and report non-agricultural income as agricultural income. Five, there is a mismatch between the tax base and the responsibilities assigned to different layers of govemments. The states have always complained about inadequate revenue compared to their expenditure. Similarly, there is shortage of funds at local government level compared to the expenditure they carry out. Six, tax base is unevenly distributed across states. For example, rich states have a relatively higher share of people who pay taxes. Similarly, relatively higher amount of excise duties is collected fiom industrially better off areas. In order to tackle the problems of inadequate tax revenue at the state level, the Centre transfers h d to the states. Apart from meeting the gap between revenue and expenditure the devolution of funds to subordinate layers of government has the effect of bringing in regional balance in economic development over time. There are three modes of transfer of h d s fiom the Centre to the states. First, the centre collects certain taxes (particularly, personal income tax and excise duties) and allocates a share of the tax proceeds to the states. In order to streamline such allocation the constitution provides for setting up of a Finance Commission every five years, which suggests criteria of such sharing between the ‘ Centre and the states on the one hand, and amongst different states on the other. So flir twelve Finance Commissions have been set up and each Finance commission Economic Development while suggesting such formulae have been poverty, backwardness, tax effort, fiscal discipline and population. The second mode of transfer of fhds h m the Centre to the states is the grants and loans extended to states for implementing development plans. As you know, while preparing the Five Year Plans the Centre sets targets and investments by different sectors of the economy. Against this backdrop the states prepare their annual plans which is approved by the Planning Commission. The states receive grants and loans h m the Centre which supplement the revenue generated at the state level. The Planning Commission allocates fhds to states as per formula devised by the National Development Council. For major states the ratio of grants to loan is 30:70. The third mode of transfer of h d s h m the Centre to the states is the grants given by central ministries to their counterparts in different states for specified projects. Such projects are wholly M e d by the Centre (under ‘central schemes') or the states are asked to contribute a proportion of the cost (in the case of 1 ‘centrally sponsored schemes'). The devolution of'fhds from the Centre to the states has been a matter of political economy. The allocation of funds across states, particularly by the Planning Commission and Central Ministries, is riddled with bargaining power of the state government, presence of pressure groups, and political interests rather than balanced economic growth. The grants extended to local bodies by the states is mostly discretionary and no set rule is formulated so far. The adoption of value added tax (VAT) by states in lieu of sales tax has opened up fhxh debates on tax base of the state governments. Check Your Progress 2 Note: i) Space given below for your answers. i) Check your answers with those given at the end of the unit. 1) Explain the three stages of demographic transition. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚ ¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 2) What are the changes. observed in the sectoral composition of GDP-in India? ‘ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã ¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 16 3) Explain the concept of disguised unemployment. Features of the IndinEconomy †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 4) What are the modes of transfer of h d s h mth e Centre to the States? 5) State whether the followin g statements are true or false. a) Unorganised sector is also called registered sector. b) In developed economies primary sector contributes a large share in GDP. ) Productivity of labour is higher in the tertiary sector than in the primary sector. 17. 9 LET US SUM UP Indian economy is considered to be a developing economy. At the time of Independence the agricultural sector contributed about 50 per cent of the GDP. Over the years its share has decreased to about 22 per cent of GDP which means that the share of industrial and service sectors is increasing. This is a positive development. But agricultural sector employs about 60 per cent of the labour force and this percentage is not declining which is a matter of concern. India is the second largest in terms of population and it is still growing at a very high rate. About one-third of the population in the country are poor. There is considerable underemployment and unemployment in the economy also. The federal nature of government in India requires interaction among different layers of government according to set rules. It is also desirable to achieve consistency between revenue generation and government expenditure to carry out responsibilities at each layer of government. Keeping in view the shortage of funds at the state level the Centre provides grants and loans to the states. India has made radical changes in her economic policies since 1991. Economic libedzation has resulted in setting up of more industries and the level of technology has improved. The annual growth rate of GDP has increased to about 6 per cent ; during the liberalization period. Its export potential also has improved and India Economic Development has a strong fareign exchange reserve. We will discuss the changes in economic policy, popularly termed ‘economic reforms' in subsequent units. 17. 10 KEY WORDS Constant Prices Disguised Unemployment : Financial Year Gross Domestic Product : (GDP) National Income Per Capita Income Public Sector National income in money terms would increase because of two factors: i) increase in quantity produced, and ii) increase in price of commodities. In order to neutralize the effect of price increase national income is expressed in terms of prices of a particular year, called ‘base year'. When we say that GDP is given in terms of 1993-94 prices, GDP of all the years are adjusted for price changes so that growth in GDP is due to increase in quantity w. A person is considered to be disguisedly nemployed if hisher contribution to total output is zero. Even if we withdraw the worker from work, output will not decline. Let us take an example. For the year 2004, calendar year is from January 1 to December 3 1. On the other hand, financial year 2004-05 is h m April 1,2004 to March 3 1, 2005. It is the total amount of final goods and services produced within the geographical tenitory of the economy. It does no t include intermediate goods and service, i. e. , goods and services that are not consumed directly but used for M e r production. Moreover, it does not include second hand sales ecause it does not reflect production; rather it is a change of ownership of goods produced earlier. It is also called ‘net national product' (NNP). It is the total of final goods and services produced . by Indian nationals (both within the country and residing abroad) minus the amount of dqmiation during the production process. If we add the amount of depreciation to NNP we get GNP. Remember that GNP is different from GDP. In GDP of India we include final goods and sexvices produced within the geographical territory of India (both by Indian and foreign nationals). It is national income divided by total population of the country. , -ha. . It includes the economic activities undertaken by the government. Vicious Circle of Poverty : It reflects a flow of inter-related economic activities that keep an economy under-developed. According to Ragnar Nurkse underdeveloped economies have low rate of saving which gives rise to low rate of investment. Due to low rate of investment, low level technology is employed in production activities. Because of low level of technology, output produced is lower. Consequently, saving is low and the cycle

Many of the characters in ‘Of Mice and Men’ are lonely Essay

Describe the reasons for their loneliness and explore the different ways they seek comfort. Many of the characters in the novel ‘of Mice and Men’ are lonely because they grew up in an unurturing and unfriendly environment. The reason for this type of negative and depressing attitude is due to the ‘Great Wall Street Crash’. This tormenting economic crash took place at the same time when the novel ‘Of Mice and Men’ is set, in the year 1929. Families fell apart as the men were forced to leave behind their roots, and seek employment on ranches in order to bring back stability in their lives again. Relationships were never formed on these ranches as no one had any time nor interest in trying to communicate and bond with the other ranch hands or other residents. The only object the ranchers were attracted to was making money and moving on, therefore there was no stability. Tragically, vast amounts of people committed suicide, as they could not bear to live their lives recounting all their losses. Coincidentally the meaning of the town Soledad is ‘our lady of loneliness’. Loneliness is a spreading disease, which has the power to make the most cheerful people dull and gloomy as they begin to feel isolated. There is no direct cure for loneliness; therefore no one knows how to deal with it. This is the stage where the effected people begin to split into two distinctive groups depending on each individual’s character; the two groups are known as introverts and extroverts. The people that are catogrised in the introvert group suffer the most as they keep all their emotions locked up inside, leading in them taking their anger out on themselves. Whereas the extrovert group has a completely different way of approaching loneliness, they begin to take their anger out on other people in such ways as being aggressive and flirtatious to overcome their feelings. There is a vast comparison between the two groups; if you look at it between characters, which are extroverts and introverts, at one extreme you have Crooks a Negro who is partially crippled, and then you have Curley, a cruel, insensitive extrovert. All humans need to be comforted at the time of need as this is the human desire, therefore, it is not surprising that the characters in this novel also require comfort. Some characters similar to Crooks need friendship-based relationships so that they can communicate with other people. Other characters similar to George and Lennie have their future dream to look forward to and work towards that is their target. The definition of a dream is: ‘Dream n. Train of thoughts, images, or fancies passing through mind during sleep; Conscious indulgence of fancy, reverie, thing of dream-like beauty, charm, goodness, etc.’ (Taken from the Readers Digest Great Encyclopedic Dictionary, Third Edition) A dream is something you indulge in, to escape momentarily from life. This seems to be the context that John Steinbeck intended his characters in Of Mice and Men to dream in. They are all craving for something – in the case of George and Lennie, that something is land. All the dreams in this novel are similar to the Great American Dream, which is that you can achieve anything if you have the mind and desire to do it. However, most of the characters who have dreams know that their dreams may never become reality, but never the less it still provides comfort for them. Crooks is partially crippled, ‘his body was bent over to the left by his crooked spine’, yet self-dependant Negro, he too is very lonely. Crooks’s personality is quite interesting, as he is very defensive and protective of himself: ‘He kept his distance and demanded that others kept theirs.’ Crooks is very cautious about those who approach him, this is as he does not want to be in any more pain than he already is; he is frightened that someone will not only hurt him physically but harm him mentally as well. He is fully aware of his rights, he knows the limitations of what he is allowed to do and what he has not got the right to do. Crooks is lonely as he has not got anyone to talk to due to the colour of his skin, he does not even know how to act around other guys. All he spends his time doing is reading the ‘battered magazines and dirty books’ which were scattered all around his bunk: â€Å"Books ain’t no good, a guy needs somebody – to be near him†¦A guy goes nuts if he ain’t got nobody. Don’t make no difference who the guy is, long’s he’s with you†¦Ã¢â‚¬  Later on in the chapter we realise that all Crooks is longing for is companionship, however, it is evident to see that Crooks is a bad communicator: â€Å"You got no right to come in my room. This here’s my room. Nobody got any right in here but me.† Crooks reacts angrily, his anger is and pride is a defense against the harsh treatment he has been subjected to and experienced for most of his years in life. He has been held back without any real conversation for an eminent amount of time, therefore leading to his language being unwelcoming as it is aggressive and defensive. Loneliness has had a negative effect on Crooks as it has made him verbally aggressive and very protective of what is his and his right. In chapter 4, John Steinbeck does a role reverse, instead of a white man tormenting a Negro, a Negro torments a white man, in this case Lennie. Crooks took a lot of pleasure in torturing Lennie the night George went into town, he had pleasure form teasing Lennie by suggesting that George would not bother to return as he better off without the presence of Lennie: â€Å"I said s’pose George went into town tonight and you never heard of him no more†¦Just s’pose that.† Crooks enjoys having the power over Lennie, he uses persuasive and manipulative language to prove his point, for once in all the time on the ranch he has an advantage over a white man. This inspires him, Crooks is feeling good at this point; he feels self-assured as though he can take on anything: â€Å"†¦Now you jus’ get on out, an’ get out quick. If you don’t, I’m gonna ast the boss not to ever let you come in the barn no more.† Crooks builds up his confidence to such an extent that he forgets his status on the social hierarchy. However, Curley’s wife coldly reminds Crooks of his unsuccessful position as a black man; a ‘nigger’: â€Å"Well, you keep your place here nigger. I could get you strung up on a tree so easily it ain’t even funny.† This racist statement reminds Crooks of his old self, leading to him remembering that he has ‘reduced himself to nothing’, he ‘pressed his body against the wall’, in shame. Crooks achieves comfort from remembering his childhood; Crooks came from a background full of love and care for each other, he knows what the true value of companionship is: â€Å"I remember when I was a little kid on my old man’s chicken ranch. Had two brothers. They were always near me, always there.† Crooks past childhood is full of affection and love in contrast to Crooks now, an isolated and lonely man who is referred to as a ‘nigger’. Crooks is in vast emotional pain as he knows what he is missing out on, however, some people may argue that he is actually quite advantaged as at least he has old memories to refer back to. Crooks also gets comfort from asking to be allowed to join the dream, which George, Lennie and Crooks hold: â€Å"If you would want a hand to work for nothing- just his keep, why I’d come and lend a hand.† Crooks wants things to go back to as he was a child, he wants to revisit the happy days of his life that are now just a vague memory to him. Crooks knows that the only way he can do this is by joining the dream that George, Lennie and Crooks share. However, Crooks soon finds out when George rejects him from sharing the dream that he is destined to be an old isolated Negro. George Milton is one of the main characters in the novel, ‘Of Mice and Men’, he is quiet, modest and clearly a good worker. George is considered as one of the fortunate characters in this particular novel, this is as he atleast had a chance to experience the true value of companionship and unconditional value with his best friend Lennie Small. His companionship with Lennie ‘staves of loneliness’, as well as giving George a role in life; a clear task to look after Lennie. It is evident to see that at the beginning of the novel George feels superior with this role as it gives him a sense of power over Lennie: â€Å" â€Å" George has learnt vastly from his past experiences with Lennie; this allows George to have a two-way relationship with Lennie, one that of a best friend, and another that of a parent. George feels a sense of duty and responsibility towards Lennie as a parent: â€Å"Don’t really seem to be running, though. You never oughta drink water when it ain’t running, Lennie.† However, as the novel progresses George begins to realise what companionship is, ‘we kinda look after each other’, now this role simply makes George feel different from the rest of the ranch hands as it entitles him to a status. Nevertheless, George still recognises that he is still lonely, despite having a companion, it may be more discrete than others may, but he is still lonely. George and Lennie do not interact on an intellectual level; Slim describes George as a ‘smart little guy’, where as Lennie is described by George as ‘dumb as hell’; therefore the comparison on their intellect is eminent. At times George thinks he is talking to himself, as Lennie never really responds to his questions. Therefore Lennie can never really understand George emotionally or physically. George seeks comfort by the companionship with Lennie, they both look out for each other: â€Å"Guys like us, that work on ranches, are the loneliest guys in the world’†¦ Lennie broke in. ‘But not us! Because†¦because I got you to look after me, And you got me to look after you, and that’s why.† George relies on his companionship with Lennie to get through the unurturing and unfriendly environment of Soledad: â€Å"†¦it’s a lot nicer to go around with a guy you know’ George values and treasures his special relationship with Lennie, he loves him so much that he can even sacrifice him for Lennie’s own benefit. George also seeks comfort by his simple dream, he wants him and Lennie to have land of their own, and they want to be their own managers and look after each other until they grow old: â€Å"Some day-we’re gonna get the jack together and we’re gonna have a little house and a couple of acres†¦when it rains in the winter, we’ll just say the hell with goin’ to work, and we’ll build up a fire in the stove and set around it an’ listen to the rain comin’ down on the roof†¦Ã¢â‚¬  George’s dream, although extremely similar to Lennie’s, is probably more detailed and complicated. Lennie due to his child-like mentality only thinks as far as ‘tendin’ the rabbits’, whereas George assesses the situation by asking himself if they have got enough money, or when will they be able to achieve the dream, before accepting the dream to become reality. George had made it perfectly clear that the dream that he and Lennie share will only become successful if they both achieve it: â€Å"†¦I knowed we’d never do her. He usta like to hear about it so much I got to thinking maybe we would.† George realised that he just got carried away, he knew from the start that the dream was unattainable; all dreams are unattainable in Soledad, as it is such a disturbing environment. Curley’s wife is possibly the loneliest of all characters in the novel, ‘Of Mice and Men’, throughout the beginning of the novel John Steinbeck gives the readers the impression that Curley’s wife is a ‘tart’: ‘She put her hands behind her back and leaned against the doorframe so that her body was thrown forward’ She is portrayed as tarty through her provocative appearance and flirtatious actions. John Steinbeck deliberately does not give her a name, she is only known as Curley’s wife; therefore a possession of Curley. Curley’s wife has been forced to recognise that her sexuality is the only weapon, the only thing that will ever get her noticed: ‘She had full, rouged lips and wide-spaced eyes, heavily made up’ This is mainly the reason for why she is dressed in a sexually provocative manner throughout the novel. Curley’s wife’s complaints of loneliness are likely to be sincere, yet she presents them in a manipulative manner that reduces any sympathy for the character. Her ‘craving for contact is immense’, she is longing for someone to have a conversation with her: â€Å"Why can’t I talk to you? I never get to talk to nobody. I get awfully lonely.† However, it seems that everyone is ‘incapable’ of having a faithful conversation with her without it including any ‘sexual content’. John Steinbeck describes Curley’s wife, as so desperate that to experience the true value of a relationship that she would do anything to obtain it: ‘If anyone- a man or a woman- ever gave her a break- treated her like a person- she would be a slave to that person.’ Curley’s wife is prepared to carry out any instructions, or meet any demands for anyone that would for once be able to trust her and become her friend, she would do it to such an extent that she would even follow them as if she was enslaved to them. Curley’s wife has a different type of dream from George and Lennie’s; instead of having something to call her own, she wants fame, fortune and respect: â€Å"Coulda been in the movies, an’ had clothes- all of them nice clothes like they wear. An’ I coulda sat in them big hotels, an’ had pitchers took of me†¦Because this guy says I was a natural.† Curley’s wife’s dream allows her to escape from her tormenting controlled life and seek comfort from what in her point of view could have happened. Curley’s wife is vulnerable, and innocent, she shows her humanity by consoling in Lennie. However, Curley’s wife seems to have a deep regret that she did not take up either of the men on their offers: â€Å"If I’d went, I wouldn’t be livin’ like this, you bet.† Curley’s wife’s vulnerability shows the most at this point, she is so desperate to get away from her usual lifestyle that she takes the words of a complete stranger to be equivalent of that of a gospel: â€Å"He says he was gonna put me in the movies. Says I was a natural.† Curley’s wife’s dream was shattered when the letter that she was waiting for never came, coldly she blamed her mother, accusing her of ‘stealing the letter’. It is understandable that there never was going to be a letter, the men were just taking advantage of the poor innocent girl. Curley’s wife married Curley on impulse; her hasty marriage to Curley proves to be a failed attempt to escape from her own spiral of loneliness, however, it is now that she has come to realise that what she did was immoral; she feels more trapped now then she ever did: â€Å"I don’t like Curley. He ain’t a nice fella.† Curley’s failure to satisfy his wife both emotionally and physically is another reason why Curley’s wife is so lonely and has so much hatred built up towards him. When Lennie kills Curley’s wife in Chapter 5, John Steinbeck offers the readers a disturbing image. He describes her with more life and vitality as a corpse than he did as a living character, her ‘rouged cheeks’ and ‘reddened lips’ now after her death give her the appearance of life. In death the ‘meanness and the plannings and the discontent and the ache for attention’ have gone from her face. This represents John Steinbeck’s first concrete praise for Curley’s wife; he writes for the first time that she appears ‘pretty’ and ‘simple’, a more commendable character as a corpse than as a living human being, as she is not her manipulative self. Therefore, concluding that in a way, some may say that Curley’s wife has achieved her dream as she won her innocence back. Loneliness is a major theme in the novel ‘Of Mice and Men’. It is only the two characters George and Lennie who stave of it by their relationship. However, the disadvantaged characters are the ones who suffer the most, it embitters Candy and Crooks, moreover, it kills Curley’s wife. John Steinbeck describes loneliness as part of a human condition in this particular novel, it is something we as humans are born with leading it to be either something we fight or succumb to all our lives: â€Å"Guys like us, that work on ranches, are the loneliest guys in the world’†¦ Lennie broke in. ‘But not us! Because†¦because I got you to look after me, And you got me to look after you, and that’s why.† However, throughout the novel John Steinbeck does not offer any answers to get rid of loneliness, it only shows how different characters deal with this problem differently.

Gender And Racial Identity Of Film - 2128 Words

Yue Zheng Prof. Aili Bresnahan PHL 324 11/8/2016 Gender and Racial Identity in Film Gender and racial identity was a form of discrimination in the world and they were interrelated that fuelling the injustice social phenomenon and problem. For example, women were a particular group and as a symbol showed the social abuses, acts of violence and biggest discrimination based on the sexual difference and racism. The difference of color, race, gender were the big biases not only to deprive of women’s an equal rights education opportunity, health insurance or care, personal credit, but also to help racist and sexist to deny women get the work, food and shelter equality. On the one hand, everyone has their own identity which was the individuals’ psychological relationships to relate social systems. Based on the Repost of Gender and Racial Discrimination which focused on and pointed out there are some barriers to limit women get the rights or empowerment in daily life and advancement in their career, especially the sexualit y and racial biases. (Zagreb, Croatia). So, the personal value, socioeconomic status, education attainment, age, ethnic and racial, gender and social class identities were the invisible standards to decide and evaluate women should be got what kind of treatment in their life. Also, people almost preferred to create identity based on the gender and racism in the daily life. because it was a part of self-concept for the kind of person, the color of skin and theShow MoreRelatedThe Story Shortcomings On Declining Of Miko s And Ben Relation1178 Words   |  5 Pagesthat impact our sense of identity and our outlook. The author Adrian has done a great work explaining different ways in which ethnic stereotypes can affect an individual mentally. 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