POLITITICS & ECONOMY
Farid
Danish
Abdullahi
Ritesh
Vaibhav
Bhavani
Harshith
CONTENTS
• Introduction
• World economy
• Politics and Indian economy
• Politics and economy of Afghanistan
• Politics and...
Introduction
Political economy was the original term used for studying
Production, buying, and selling, and their relatio...
There are various ways in which politics affects the
economy
•Formation of economic policies.
•International trade
•GDP ,...
WORLD ECONOMY
Worldeconomy
• The world economy, or global economy, generally refers to
the economy, which is based on economies of all o...
Factors affecting worldeconomy
 POLITICS
Many industries are regulated by the government in one form
or another.
There ar...
 Environmental Impact.
Environmental changes bring a huge change in economy of a
country. But Economic growth or fall in ...
 Wars and disasters
Wars and disasters can drastically change economy of any
country .
• Wars
Wars within a country or am...
Disasters
For example:-
The devastation caused by torrential rains that
lashed Uttarakhand earlier this month is expected ...
 Price changes for non-renewable resources.
Price change equally contributes in the fluctuation of
economy. The price of ...
INDIAN
ECONOMY
Politics and Indian economy
Politicians have always battered India's economy, they still
do.
• The Indian story has a para...
• The economy was allowed to be stifled under a welfare state
system since 1947, it eventually became a secondary pawn in ...
Results…
• Manufacturing sector in a bad state
• Obsession with food security bill
• Investors, both foreign and Indian, a...
Respondents say the Indian economy – once a darling of foreign
investors — went into a tailspin in 2012 after former finan...
India can't be a ‘Jugaad’ Economy Forever
1) Land
2) Labour
3) Energy
World Bank data suggest that India was ninth in the ...
• The time taken to start a business in India has fallen from 33
days four years ago to 27 days in 2012.
• A Bain & Compan...
Politics helping out Indianeconomy
 Information technology (IT).
Andhra Pradesh has a significant amount of Software expo...
Agriculture and trade
Politics contribute a lot towards the agriculture and trade of India.
Although agriculture contribut...
Politics and the corporate world
Politics has helped in growth of corporate world which leads in
growth of Indian economy....
Measures to be undertaken…
• Improve its governance.
• Improve colleges and universities.
• Innovate in farming.
• Build m...
ECONOMY OF
AFGHANISTAN
Politics and economy of Afghanistan
• Introduction
• The economy of pre-soviet Afghanistan
• Damage to traditional economi...
Introduction
• Afghanistan Landlocked yet situated at the crossroads of Asia,
Afghanistan could serve as a trade crossroad...
The Economyof Pre-Soviet Afghanistan
• The British invasion of Afghanistan in 1838 marked the first of
three Anglo-Afghan ...
• In the early 1970s, however, the economic situation markedly
declined
• By 1978 approximately 80% of the Afghan populati...
Damage to the Traditional Economic Basis
(1978 – 1989)
• In 1978 the World Bank recommended that Afghanistan, with its
com...
Rise of the War Economy (1989-2001)
• The Soviet withdrawal and ensuing civil conflict between the
government and various ...
• Further changes were on the horizon with the emergence of
the Taliban in 1994 and their subsequent takeover of Kabul in
...
Selected economic developments since 2001
• Afghanistan's economy is recovering from decades of
conflict. The economy has ...
• From donor countries to Afghanistan, (United States of
America the greatest, Europe and Great Britain, respectively
the ...
SOMALIA
Politics and economy of Somalia
• Famine is the largest factor affecting Somalia.
• About 2000 people die every year due t...
Political factors affecting Somalia
1) West’s desire to resist the spread of Islamic fundamentalists
2) Effects of civil w...
West’s desire to resist the spread of
Islamic fundamentalists.
• Westerners generally don’t like Islam but are attracted
t...
War and immigration.
• A civil war occurred during 1991 due to political instability
• Every one’s DESIRE TO RULE.
• Many ...
Effects of civil war.
I. Many people died and are still dying as the war continues.
II. Following are few factors that eff...
CONCLUSION
PriceChanges
 Hike in petrol prices
Downfall of Indian
rupee
MISS-MANAGEMENT OFRECOURCES
 Shortage of power
 Scarcity of water recourses.
Lackof propergovernance
 Naxalism
 Civil wars
 Rationalism
Google images
Wikipedia.org
Slideshare.com
Economic survey 2012-2013
University of Pennsylvania
World bank report
T...
Thankyou…
WE CAN AND WE WILL
--BARAK OBAMA
Politics and economy
Politics and economy
Politics and economy
Politics and economy
Politics and economy
Politics and economy
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Politics and economy

Published on: Mar 4, 2016
Published in: Education      Business      News & Politics      
Source: www.slideshare.net


Transcripts - Politics and economy

  • 1. POLITITICS & ECONOMY Farid Danish Abdullahi Ritesh Vaibhav Bhavani Harshith
  • 2. CONTENTS • Introduction • World economy • Politics and Indian economy • Politics and economy of Afghanistan • Politics and economy of Somalia • Conclusion
  • 3. Introduction Political economy was the original term used for studying Production, buying, and selling, and their relations with law, custom , and government In its contemporary meaning, politics & economy refers to different, but related, approaches to studying economic and related behaviors.
  • 4. There are various ways in which politics affects the economy •Formation of economic policies. •International trade •GDP , per-capita income •Regional imbalances •Income inequality •Wars and disturbances •Choice between protectionism and free trade. •Trade agreements •Scams and corruption
  • 5. WORLD ECONOMY
  • 6. Worldeconomy • The world economy, or global economy, generally refers to the economy, which is based on economies of all of the world's countries' national economies.  Factors affecting worldeconomy • Politics •Environmental Impact • Wars and disasters •Famine, which affects the people and international markets directly • Price changes for non-renewable energy, such as oil and natural gas.
  • 7. Factors affecting worldeconomy  POLITICS Many industries are regulated by the government in one form or another. There are industries that are heavily regulated by government and new laws and rules can shakeup an entire industry and depress growth. Toy industriesFor example :- New child toy safety laws implemented under the Consumer Product Safety Improvement Act in 2009 threatened to wipe out many small toy producers as the requirements to test and certify the toys were cost- prohibitive to all but large toy manufacturers
  • 8.  Environmental Impact. Environmental changes bring a huge change in economy of a country. But Economic growth or fall in an industry can be impacted not only by the environmental effect the products or services have but also by consumers' perceptions of that impact. For example :- The market for fur apparel declined drastically over the course of a few years in the 1990s when consumers perceived that raising and killing small animals for their fur was both inhumane and a poor use of land. Although the industry is once again picking up with international demand, the number of fur farmers in the country has substantially declined.
  • 9.  Wars and disasters Wars and disasters can drastically change economy of any country . • Wars Wars within a country or among other country disrupt the economy. Other countries may choose to suspend trade, imports of 'luxuries' will slow down as priority is given to importing raw materials or military equipment. Trading ships may be sunk by the enemy. Raw materials and factories will be turned over to manufacturing war goods like tanks, uniforms etc
  • 10. Disasters For example:- The devastation caused by torrential rains that lashed Uttarakhand earlier this month is expected to cause a loss of Rs 12,000 crore to the state's tourism industry in the current fiscal, says a PHDCCI (Progress, Harmony and Development Chamber of Commerce and Industry) survey Its obvious that economy is affected as a reason to Natural disasters, such as earthquakes, droughts, and floods. Factors like :- 1. loss of lives which brings in loss of man power. 2. less investors are willing to invest in the country . 3. loss of crops if disasters occur in an agricultural country. 4. loss of tourism.
  • 11.  Price changes for non-renewable resources. Price change equally contributes in the fluctuation of economy. The price of oil has more than doubled in the last three years. By contrast, the current run-up has been a more gradual process extended over several years, caused by surging world demand running up against limits to what global producers can supply. One option available to an individual consumer or producer facing higher oil prices is just to go about business as before, saving or spending a little less on other items in order to pay the energy bill.
  • 12. INDIAN ECONOMY
  • 13. Politics and Indian economy Politicians have always battered India's economy, they still do. • The Indian story has a paradox. In 1991 there was no other option but to go for a drastic revision of the economic polices. • Twenty-two years after, the Indian story is about to be running on the same track towards the abyss. • politicians, particularly the rulers of the day, have turned a blind eye towards an impending disaster and busy assuring themselves that all is well. • The separation of the politics from economics in the formative years of the Indian economy is making the nation paying dearly today.
  • 14. • The economy was allowed to be stifled under a welfare state system since 1947, it eventually became a secondary pawn in the hands of the populist politicians, who in the name of welfare, maltreated the economy.
  • 15. Results… • Manufacturing sector in a bad state • Obsession with food security bill • Investors, both foreign and Indian, are disappointed What went wrong? A poll of 20 respondents comprising leading CEOs, bankers, market players and economists paints quite a grim picture. An overwhelming majority of the respondents said the Indian economy was heading for an unprecedented crisis due to mismanagement, lack of reforms, weak political leadership and policy paralysis that had led to infrastructural bottlenecks and stalled projects.
  • 16. Respondents say the Indian economy – once a darling of foreign investors — went into a tailspin in 2012 after former finance minister Pranab Mukherjee came out with the retrospective taxation proposal in his Budget. “Retrospective taxation was the biggest setback. It scared foreign as well as domestic investors,” says Ankit Miglani, deputy managing director, Uttam Galva Steels
  • 17. India can't be a ‘Jugaad’ Economy Forever 1) Land 2) Labour 3) Energy World Bank data suggest that India was ninth in the world in terms of new businesses registered in 2011. The cost of starting up a business is still high but it has steadily fallen from 70.1 percent of per capita gross national income in 2008 to 49.8 percent in 2012.
  • 18. • The time taken to start a business in India has fallen from 33 days four years ago to 27 days in 2012. • A Bain & Company report on luxury has been quoted as estimating the number of people with disposable incomes of over $100,000 to top 132,000 in 2013, up 60 percent since 2006. • Despite all the improvements mentioned above, India ranks a lowly 132 in the World Bank’s list of countries for ‘Ease of Doing Business’. • According to Reserve Bank data, private listed non-finance companies’ sales grew just 4.1 percent in the March quarter. These companies are slowing production and cutting costs. • India has the largest number of young people among major economies but does not have the mechanisms in place to train them or find decent jobs for them .
  • 19. Politics helping out Indianeconomy  Information technology (IT). Andhra Pradesh has a significant amount of Software export in India Hyderabad's IT exports exceeded $1 billion in 2004. There have been extensive investments in digital infrastructure. For example:- In 2007,"Fab City", a silicon chip manufacturing facility, was finalized to be set up in Hyderabad with an investment of 13,300 crore ($3 billion) by the AMD- SemIndia consortium.
  • 20. Agriculture and trade Politics contribute a lot towards the agriculture and trade of India. Although agriculture contributes only 21% of India’s GDP, its importance in the country’s economic, social, and political fabric goes well beyond this indicator. The rural areas are still home to some 72 percent of the India’s 1.1 billion people, a large number of whom are poor. Most of the rural poor depend on rain-fed agriculture and fragile forests for their livelihoods • Enhancing productivity • Improving Water Resource and Irrigation/Drainage Management • Balancing poverty reduction and conservation priorities • Strengthening Accountability for Service Delivery • Improving access to land
  • 21. Politics and the corporate world Politics has helped in growth of corporate world which leads in growth of Indian economy. • SEZ (special economic zones) & EPZ (export processing zone) • SEZ: special economic zones is a geographical region that is designed to export goods and provide employment • EPZ: A free trade zone (FTZ) or export processing zone (EPZ), also called foreign-trade zone, formerly free port is an area within which goods may be landed, handled, manufactured or reconfigured, and re-exported without the intervention of the customs authorities.
  • 22. Measures to be undertaken… • Improve its governance. • Improve colleges and universities. • Innovate in farming. • Build more infrastructure. • Sustainable development.
  • 23. ECONOMY OF AFGHANISTAN
  • 24. Politics and economy of Afghanistan • Introduction • The economy of pre-soviet Afghanistan • Damage to traditional economic basis (1978-1989) • Rise of war economy (1989-2001) • Selected economic developments since 2001
  • 25. Introduction • Afghanistan Landlocked yet situated at the crossroads of Asia, Afghanistan could serve as a trade crossroads and a major supplier of natural resources for the global economy. However, in recent decades, the nation’s vast economic potential has failed to take root. • Local economic developments have fed into national and regional economic processes which, conversely, have influenced Afghan politics and economics at even the lowest levels. • The rapidly-changing nature of these processes has led to a profoundly unstable and volatile “political economy” (that is, the two-way interaction between politics and economics).
  • 26. The Economyof Pre-Soviet Afghanistan • The British invasion of Afghanistan in 1838 marked the first of three Anglo-Afghan wars that would frame Afghanistan’s role as buffer state in the 19th century and later as protectorate of the United Kingdom (UK) in the 20th century. For example: King Zahir Shah, who utilized the national bank and state cartels in pursuit of a “tightly controlled” economic modernization which included industrialization and the spread of education and other social measures. • Afghanistan’s economy from the 1950s onward became closely intertwined with the Cold War.
  • 27. • In the early 1970s, however, the economic situation markedly declined • By 1978 approximately 80% of the Afghan population was dependant on the rural economy agriculture accounted for 60% of GDP ( figures remain constant)
  • 28. Damage to the Traditional Economic Basis (1978 – 1989) • In 1978 the World Bank recommended that Afghanistan, with its comparative advantage vested in Small-scale agricultural production should focus its economy on horticulture and livestock. • Subsequent Soviet involvement would inhibit this economic strategy as the already bleak economy Deteriorated further in the face of mounting conflict. FOR Example:- Soviet period shortages of critical energy supplies led to Afghan industry coming to a virtual standstill and a marked reduction in processed goods.
  • 29. Rise of the War Economy (1989-2001) • The Soviet withdrawal and ensuing civil conflict between the government and various Afghan factions led to a rapid increase in money supply (as competing governments printed their own Currencies), the depreciation of the Afghan currency and a resulting rise in food prices. • The war economy was overwhelmingly informal and highly decentralized. With no central economic authority, provincial capitals and major cities within Afghanistan became integrated into the economies of neighboring countries, turning the borderlands – from Herat in the West, Kandahar in the South or Mazar-e Sharif in the North – into self-regulating economic centers.
  • 30. • Further changes were on the horizon with the emergence of the Taliban in 1994 and their subsequent takeover of Kabul in 1996.
  • 31. Selected economic developments since 2001 • Afghanistan's economy is recovering from decades of conflict. The economy has improved significantly since the fall of the Taliban regime in 2001 largely because of the infusion of international assistance the recovery of the agricultural sector, and service sector growth. • Afghanistan's living standards are among the lowest in the world. The international community remains committed to Afghanistan's development, pledging over $67 billion at nine donors' conferences between 2003-10. In July 2012, the donors at the Tokyo conference pledged an additional $16 billion in civilian aid through 2016 • Most international aid since the fall of the Taliban regime in Afghanistan. Unconditional and open nearly thirty billion dollars is estimated
  • 32. • From donor countries to Afghanistan, (United States of America the greatest, Europe and Great Britain, respectively the second and third categories are)
  • 33. SOMALIA
  • 34. Politics and economy of Somalia • Famine is the largest factor affecting Somalia. • About 2000 people die every year due to famine. • like all the other countries Somalia also has politics that affect the economy of the country.
  • 35. Political factors affecting Somalia 1) West’s desire to resist the spread of Islamic fundamentalists 2) Effects of civil war. 3) Absence of law and order. 4) Unemployment. 5) Political instability.
  • 36. West’s desire to resist the spread of Islamic fundamentalists. • Westerners generally don’t like Islam but are attracted towards the rich resources available in the country . • Westerners utilize these resources for their own good and also stop the spread of Islam just because of their dislike towards the religion. • It is because of this desire that the US has been supporting the Somali government in their fight against the Shabab.
  • 37. War and immigration. • A civil war occurred during 1991 due to political instability • Every one’s DESIRE TO RULE. • Many people flew abroad which lead to lack of labour. • Eventually leading towards drastic fall of economy.
  • 38. Effects of civil war. I. Many people died and are still dying as the war continues. II. Following are few factors that effect economy of Somalia. (a) Loss of infrastructure (b) Loss of livelihood (c) Loss of labour (d) Loss of courtiers image (e) Corruption
  • 39. CONCLUSION
  • 40. PriceChanges  Hike in petrol prices Downfall of Indian rupee
  • 41. MISS-MANAGEMENT OFRECOURCES  Shortage of power  Scarcity of water recourses.
  • 42. Lackof propergovernance  Naxalism  Civil wars  Rationalism
  • 43. Google images Wikipedia.org Slideshare.com Economic survey 2012-2013 University of Pennsylvania World bank report Twitter.com Telugu academy text book -Dr.B.Nagaraja -Sri P.Anjaiah -Dr.C.Sailaja -Dr.K.vijaylaxmi
  • 44. Thankyou… WE CAN AND WE WILL --BARAK OBAMA