Author: B2B

Ministry of Health and Family Welfare has released Operational Guidelines for Planning and Implementation of Family Participatory Care (FPC) for improving newborn health.

The new guidelines have been released by the government for improving health of babies in special units across the country.

Key facts

1. The guidelines will serve as a guiding document for those intending to introduce FPC in their facility as an integral part of facility based newborn care.
2. The operational guidelines of FPC are for all stakeholders involved in the process of planning and delivering newborn care.
3. Under the guidelines—Operational Guidelines for Planning and Implementation of Family Participatory Care (FPC)—parent-attendants will be trained in newborn care through a structured programme including an audio-visual module and a training guide. The staff at a newborn care unit would provide continuous supervision and support.
4. The guidelines address various aspects of attitudes, infrastructural modifications and practice that will help in establishing FPC at Special Newborn Care Units (SNCU) such as sensitization of State and District Managers on FPC, prioritization of SNCUs for initiating FPC etc.

Background

FPC has emerged as an important concept of health care which provides for partnership between health care staff and families for care of sick newborns. Under FPC, the capacities of parents-attendants are built in newborn care through a structured training programme (audio -visual module and a training guide). The staff at newborn care unit will provide continuous supervision and support. Provisions for infrastructure and logistics strengthening required for implementing FPC are ensured in the annual state Program Implementation Plan (PIP).

Need for family participation

Sick and newborn are highly vulnerable and require careful nurturing in order to survive the neonatal period and first year of life. In recent years, health experts have found that if parents are trained during the stay of their babies in hospital to provide supportive care to sick newborns, it helps in not only improving survival of babies after discharge but also provides for psycho-social and developmental needs of the newborn.

In this regard, Family Participatory Care has emerged as an important concept of health care which provides for partnership between health care staff and families in care of sick newborns admitted in the SNCU. The move is expected to bring down infant mortality.

National Income Accounting in India

National income of a country can be defined as the total market value of goods and services produced in the economy in a year.

The three-important measure of calculating National Income of a country are:

• The sum of the value of all final goods and services produced.
• The sum of all incomes accruing to factors of production, i.e., Rent, Interest, Profit and Wages.
• The sum of consumer’s expenditure, net investment, and government expenditure on goods and services.

Circular Flow of Income in a Three Sector Economy

• The modern economy is a monetary economy. Money changes hand from one sector to another.
• The Household sector supplies their services like labour, land, Capital and entrepreneurial abilities to firms and receives payments in return in terms of money.
• In the first stage of the model, the Household sector provides their services of labour, land, capital and entrepreneurial skills to the Business firms.
• In the second stage, the Business firms pay back in monetary terms to the Household sector in the form of Wages, Rent, Interest and Profits.
• In the third stage, the money received by household is spent on the goods and services produced by the firms in the form of consumption expenditure. At the same time, the Firms provides their goods and services to the Household in return for the money.
• Thus, we see, that money flows from business firms to households as payments for a factor of production (Labour, Land, Rent and Entrepreneurial skills), and then it flows from Household to firms when Household purchased goods and services produced by the firms. This money flow is called circular flow of income.

Saving and Investment in the Circular Flow

• Along with consumption, the household also saves part of their money.
• When Household saves, their expenditure on purchase of goods and services decline. The decline in the purchase will result in a decline in money received by firms. This will result in less money flow to the household as the firms will reduce hiring and production operations. Thus, saving act as a leakage from the economic system.
• But the important question to ask is, where will savings go in the economy?
• The savings in the economy does not lead to any reduction in aggregate spending and income as the savings flows back into the economic system through Financial Markets (Banks, Stock markets, insurance etc.)
• From Financial Markets, the savings flows back to the Business firms who borrow them and invest it into new forms of investments.
• Thus, the saving which is a leakage in the system also flows back into the system through investment by a firm which acts as injections.

Government Sector in the Circular Flow

• Government affects the economy in a number of ways. The main components of government intervention are in the form of taxes, spending and borrowings.
• Government purchase goods and services just as household and firms do.
• Government financed its expenditure through taxes and borrowings.
• The money flow from Household and firms to the government is in the form of taxes.
• The other form of money flow from Household and firms to government is in the form of Borrowings through financial markets.
• The Government pay back to household and firms in the form of provision of public goods like health, education, Policing, National Defence etc.

National Income and National Product

Gross National Product	Gross Domestic Product
GNP is the total market value of all final goods and services produced in a year in a country.	GDP is the value of all final goods and services produced by the normal residents as well as non-residents in the domestic territory of the country but does not includes Net Factor Income from Abroad.
The important thing to remember about GNP is that it is measured at market prices/value.	The important point to remember is whatever is produced in India, whether by an Indian or foreign national is part of Indian GDP.
To calculate GNP, only the final goods and services produced in an economy during in a given year must be counted. No intermediate goods and services should be included in GNP.	The key difference between GNP and GDP is the exclusion of Net Factor Income Abroad from GDP.
GNP includes only those goods and services that are produced by the residents of India whether working in India or Abroad.	GDPMP = GNPMP – Net Factor Income from Abroad.
Net Factor Income from Abroad: The sum of factor incomes like rent, wages, interest and profits generated within the domestic country is called domestic factor income. The domestic factor income includes both incomes earned by residents as well as non-residents/foreigners working in India. At the same time, Indian go abroad to work and earn wages, salaries, profits and rents. Now the Net Factor income abroad= the difference between factor income received by the residents of India working abroad and the factor income paid to the foreign residents for working in India. GNP includes Net Factor Income Abroad	GDP = Consumption + Gross Private Investment + Government Expenditure + Net Exports Net Exports= Exports – Imports. If we want to calculate Net Domestic Product from the GDP, then we just have to minus depreciation from the Gross Private Investment. NDP= Consumption + Net Private Investment + Government Expenditure + Net Exports. Where, Net Private Investment= Gross Private Investment – Depreciation.
GNP= Consumption + Gross Private Investment + Government Expenditure + Net Exports + Net Factor Income from Abroad.

Net National Product or National Income

• In the production of GNP of a year, a country uses some fixed assets or capital goods like Machinery, Equipments and technology etc.
• The capital goods like machinery, building and equipment’s undergo regular wear and tear during the production process, which reduces their value. This fall in the value of capital assets due to regular wear and tear is called depreciation.
• When the Depreciation is deducted from the Gross National Product, then we get Net National Product.
• It simply means to include all market value of goods and services produced in a year after deducting depreciation.
• NNPMP = GNP- Depreciation.

National Income at Factor Cost

• National Income from Factor Cost is also called National Income of a country.
• National Income means the sum of all incomes earned by the citizens in the form of Rent, Wages, Interest and Profits.
• The difference between National Income at Factor Cost and National Income at Market Price (NNPMP) arises from the fact that indirect taxes and subsidies cause the market price to be different from the factor income received by the citizens.
• Example, A mobile handset of Rs10,000 purchased by you includes a GST of 12%. In this case, while the market price of RS 10,000 includes the GST. The factor of production used to produce mobile handset will only get RS 8800. Thus, the difference between market price and factor cost is the tax.
• Similarly, a subsidy results in the market price of a product to be less than the factor cost.
• Therefore, while calculating National Income, we must deduct indirect taxes and add subsidies into Net National Product at Market Price.
• NNPFC = NNPMP – Indirect Taxes + Subsidies.

Personal Income

• Personal Income includes the sum of all incomes actually received by all the individuals or households during a given year.
• The individual pays income taxes, firms pay corporate taxes, individual also contribute towards social securities in the form of Cess etc., and some individuals receive social security benefits (transfer payments) like pension, unemployment allowances from the government.
• In order to move from National Income to Personal Income of individuals and firms, we must deduct all forms of direct taxes and social security contribution by the individuals and must add transfer payment received by the individuals.
• The basic idea here is to subtract all those income from National Income that is earned by an individual but has not been received like taxes and add all those incomes which are received by the individuals but has not been earned like Old age Pensions.
• Personal Income= National Income – (Undistributed Corporate Profits+ Corporate Taxes + Social Security Contribution) + (Transfer Payments).

GNP	GDP	NNPMP	NNPFC	Personal Income
GNPMP= Consumption + Gross Private Investment + Government Expenditure + Net Exports + Net Factor Income from Abroad.	GDPMP = GNPMP – Net Factor Income from Abroad.	NNPMP = GNPMP – Depreciation.	NNPFC = NNPMP – Indirect Taxes + Subsidies.	Personal Income= National Income (NNPFC) – (Undistributed Corporate Profits+ Corporate Taxes + Social Security Contribution) + (Transfer Payments).

 

By
Himanshu Arora
Doctoral Scholar in Economics & Senior Research Fellow, CDS, Jawaharlal Nehru University

 

 

• The Protection of Civil Rights (PCR) Act, 1955: For SC.

• The Scheduled Castes and Scheduled Tribes (Prevention of Atrocities) Act, 1989: For SC and ST.

• The National Commission for Backward Classes Act, 1993: For Backward Classes.

• Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995.

• National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disability Act, 1999.

• Rehabilitation Council of India Act, 1992. : For PWD.

• Maintenance and Welfare of Parents and Senior Citizens Act, 2007: For Social Defence.

• Dowry Prevention Act.

• Protection of women from domestic violence Act 2005.

• Institutions for the Development of Vulnerable Sections

• National Institute of Social Defence.

• Deen Dayal Upadhyaya Institute of Physically Handicapped, New Delhi.

• National Institute for the Orthopedically Handicapped, Kolkata.

• National Institute of Visually Handicapped, Dehradun.

• National Institute of Mentally Handicapped, Secunderabad.

• Ali Yavar Jung National Institute for the Hearing Handicapped, Mumbai.

• National Institute of Rehabilitation Training and Research, Cuttack.

• National Institute for the Empowerment of Persons with Multiple Disabilities, Chennai.

• Swami Vivekanand National Institute of Rehabilitation, Training & Research (SVNIRTAR), Orissa.

• The Indian Sign Language Research and Training Centre, New Delhi.

• The National Scheduled Castes Finance and Development Corporation.

• The National Safai Karamcharis Finance and Development Corporation.

• The National Backward Classes Finance and Development Corporation.

• The National Handicapped Finance and Development Corporation.

• Artificial Limbs Manufacturing Corporation, Kanpur.

• Dr. Ambedkar Foundation.

• Babu Jagjivan Ram National Foundation

• Bodies for the development of vulnerable sections

• National Commission for Scheduled Castes.

• National Commission for Backward Classes.

• National Commission for Safai Karamcharis.

• National Commission for Scheduled Tribes – NCST.

• Statutory Bodies for vulnerable sections.

• The Rehabilitation Council of India.

• The Chief Commissioner for Persons with Disabilities.

• The National Trust for the Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities.

• National Commission for Women, New Delhi, India.

• National Commission for Protection of Child Rights.

• National Consumer Disputes Redressal Commission.

• National Human Rights Commission, New Delhi, India

 

Constitutional Provisions

1. Article 23: Prohibition of traffic in human beings and forced labour.
2. Article 24: Prohibition of employment of children in factories, etc.
3. Article 37: Application of the principles contained in this Part (DPSP).
4. Article 38: State to secure a social order for the promotion of welfare of the people.
5. Article 39: Certain principles of policy to be followed by the State.
6. Article 39A: Equal justice and free legal aid.
7. Article 46: Promotion of Educational and Economic interests of Scheduled Castes, Scheduled Tribes and other weaker sections.

Social Safeguards

1. Article 17: Abolition of Untouchability.
2. Article 25: Freedom of conscience and free profession, practice and propagation of religion.

Political Safeguards

1. Article 330: Reservation of seats for Scheduled Castes and Scheduled Tribes in the House of the People.
2. Article 332: Reservation of seats for Scheduled Castes and Scheduled Tribes in the Legislative Assemblies of the States.
3. Article 334: Reservation of seats and special representation to cease after sixty years.
4. Article 243D: Reservation of seats (in Panchayats).
5. Article 243T: Reservation of seats (in Municipalities).

Agency for Monitoring Safeguards

1. Article 338: National Commission for Scheduled Castes.

Jobless Growth in India: Reasons and Consequences

The Consequences of Jobless Growth in India

Unemployment in India: Causes

Consequences of Unemployment.

 

Unemployment in India

Back to Basics. What is Unemployment?

Unemployment is a phenomenon that occurs when a person who is capable of working and is actively searching for the work is unable to find work.

People who are either unfit for work due to physical reason or do not want to work are excluded from the category of unemployed.

The most frequent measure of unemployment is unemployment rate. The unemployment rate is defined as a number of unemployed people divided by the number of people in the labour force.

Labour Force: Persons who are either working (or employed) or seeking or available for work (or unemployed) during the reference period together constitute the labour force.

Measure of Unemployment in India

Usual Status Approach	Weekly Status Approach	Daily Status Approach
Usual Status approach records only those persons as unemployed who had no gainful work for a major time during the 365 days preceding the date of survey and are seeking or are available for work. The status of activity on which a person has spent the relatively long time of the preceding 365 days prior to the date of survey is considered to be the usual principal activity status of the person.	The weekly status approach records only those persons as unemployed who had no gainful work for a major time during the seven days preceding the date of survey.	In the Daily status approach, current activity status of the person with regard to whether employed or unemployed or outside labour force is recorded for each day in the reference week. The measure adopts half day as a unit of measurement for estimating employment or unemployment.
The Usual Status captures long-term unemployment in the economy.	The weekly status approach captures both the long-term open chronic unemployment and the seasonal unemployment.	The approach is most inclusive than the other two. Since it also captures the days of unemployment of those who are recorded as employed on the weekly status approach.
The Usual Principal Activity status (UPS), written as Usual Status (PS), is determined using the majority time criterion and refers to the activity status on which h/she spent longer part of the year. Principal usual activity status is further used to classify him in/out the labour force. For instance, if an individual was ‘working’ and/or was ‘seeking or available for work’ for a major part of the year preceding the date of the survey then h/she is considered as being part of the ‘Labour Force’. For example, if an individual reports as having worked and sought/available for work for seven months during the year or having sought or available for work for seven months then h/she is classified as being in the Labour Force.	A person is considered to be employed if he or she pursues any one or more of the gainful activities for at least one-hour on any day of the reference week. On the other hand, if a person does not pursue any gainful activity, but has been seeking or available for work, the person is considered as unemployed.	A person who works for 4 hours or more but up to 8 hours on a day is recorded as employed for the full day. A person who works for 1 hour or more but less than 4 hours is recorded as employed for the half day. Accordingly, a person having no gainful work even for 1 hour in a day is described as unemployed for a full day.

Types of Unemployment

Frictional Unemployment	Cyclical Unemployment
The minimum amount of unemployment that prevails in an economy due to workers quitting their previous jobs and are searching for the new jobs is called Frictional Unemployment.	Cyclical unemployment is due to deficiency or fall in effective demand from consumers which leads to fall in production and low demand for labour. Cyclical unemployment is a type of unemployment which is related to the cyclical trends of booms and recessions called as the business cycle. If an economy is doing good, cyclical unemployment will be at its lowest and will be the highest if the economy faces recession.
The major reasons for frictional unemployment are lack of information about the availability of jobs and lack of mobility on the part of workers (it means workers are not willing to travel to a distant place or a new state for employment).	The major reason for this type of unemployment is lack of demand in the economy and slowdown of economic activity. When the demand for goods and services is low, then the firms stop the production due to rise in the unsold stock. As a result of stopping production, the firms lay off workers and unemployment rises.
Frictionally unemployed person remains unemployed for a very short period of time.	This type of unemployment is for a long period of time and worker remains unemployed during the entire phase of slow down or recession.
This type of unemployment is of voluntary nature.	This type of unemployment is of involuntary nature.

Voluntary Unemployment	Involuntary Unemployment
Voluntary unemployment refers to a situation where workers are either not seeking for work or are in transition from one job to another (quitting one job in search of another better job).	Involuntary unemployment refers to a situation where workers are seeking work and are willing to work but are unable to get work.
Voluntary unemployment remains in an economy during all the time. As there will always be some workers, who quit their previous jobs in search of new ones.	Involuntary unemployment happens in an economy during the time of depression and fall in aggregate demand for goods and services.

Structural Unemployment	Seasonal Unemployment
Structural unemployment refers to a situation which arises due to change in the structure of the economy. Example: An economy transforms itself from a Labour intensive economy to a Capital intensive economy. Structural unemployment usually occurs due to the mismatch of skills. Example, due to advance technological progress, the production of cars is done through robotic machines rather than traditional Machines. As a result, those workers who do know how to operate the new and advanced machines will be removed. The unemployment happened because the current workers do not have the required skills as wanted by their employers.	Seasonal unemployment occurs during certain seasons of the year. In some industries and occupations like agriculture, holiday resorts etc., production activities take place only in some seasons. Therefore, they offer employment for only a certain period of time in a year. People engaged in such type of activities may remain unemployed during the off-season.
Technological Advancement, Robotics, Artificial Intelligence, Mechanisation and Automation are the main causes of Structural unemployment.	Seasonal unemployment mainly occurs in Agricultural sector, Tourism sector and in factories producing seasonal goods.

Back to Basics: Disguised Unemployment

• Disguised unemployment is a situation especially prevalent in poor and developing countries.
• Disguised unemployment is when too many people are employed than what is required to produce efficiently. This kind of employment is not at all productive.
• It is not productive in a sense that production does not suffer even if some of the employed people are withdrawn.
• The key point to remember is that the marginal productivity of labourers under disguised unemployment is zero. The labourers are employed physically, but not economically.

Example: In a piece of 5 Acres land, 5 family members are employed to grow 100 Kgs of rice. The maximum rice that can be grown on the land is 100 Kg only. Now, the family decides to employ additional two members of its family on the same land. In such a scenario, the additional two members will not contribute anything in production since maximum production has already been reached. The additional two members will only end up congesting the farm land. Hence, they both are disguisedly unemployed.

Member 1 20 Kg

Member 2 20 Kg

Member 3 20 Kg

Member 4 20 Kg

Member 5 20 Kg

Since maximum output of 100 Kg is already reached.

Member 6 & 7 contribution will be 0 Kg.

The situation of disguised unemployment is most prevalent in the agriculture sector of the underdeveloped countries. The key idea is that the amount of population in agriculture which can be removed from it without any change in the method of cultivation, without leading to any reduction in output.

Back to Basics: Under Employment.

Underemployment is the most dangerous kind of unemployment in an economy. Underemployment is a situation under which People with a higher level of skills are employed in less productive jobs. It simply means that the Labour force of the economy is not fully utilised as per their skills and experience.

Example: an individual with an engineering or management degree working as a clerk or accountant in a firm or a social science graduate working as a pizza delivery boy.

The consequence of Underemployment.

 

The constitution does not describe the term backward classes.

It is up to the centre and the states to postulate the classes that belong to this group. However, it is understood that classes that are not represented adequately in the services of the state can be termed, backward classes.

Further, the President can, under Art. 340 constitute a commission to investigate the condition of socially and educationally backward classes. Based on this report, the president may specify the backward classes. Commission for Enquiring into Conditions of Backward Classes

1. Article 340: Appointment of a Commission to investigate the conditions of backward classes.

Safeguards relating to Educational & Public Employment

1. Article 15: Prohibition of discrimination on grounds of religion, race, caste, sex or place of birth.
2. Article 16: Equality of opportunity in matters of public employment.
3. Art. 15 (4): “Nothing in this article or in article 29(2) shall prevent the state from making any provisions for the advancement of any socially and economically backward classes of citizens or for Scheduled Castes and Scheduled Tribes.” This clause started the era of reservations in India. You may please note that Art. 15(4) talks about backward classes and not backward castes thus caste is not the only criterion for backwardness and other criteria must also be considered.
4. Art. 15 (5): This clause was added in 93rd amendment in 2005 and allows the state to make special provisions for backward classes or SCs or STs for admissions in private educational institutions, aided or unaided.
5. Art. 16(4): This clause allows the state to reserve vacancies in public service for any backward classes of the state that are not adequately represented in the public services.
6. Art. 16 (4A): This allows the state to implement reservation in the matter of promotion for SCs and STs.
7. Art. 16(4B): This allows the state to consider unfilled vacancies reserved for backward classes as a separate class of vacancies not subject to a limit of 50% reservation.

Constitutional Provisions for Women

There are numerous legal provisions to enhance the status of women which is a more susceptible group in Indian society.

1. Art. 15(3): It permits the state to make special provisions for women and children. Several acts such as Dowry Prevention Act have been passed including the most recent one of Protection of women from domestic violence Act 2005.
2. Art. 23: Under the fundamental right against exploitation, flesh trade has been banned.
3. Art. 39: Guarantees equal pay to women for equal work. In the case of Randhir Singh vs Union of India, SC held that the concept of equal pay for equal work is indeed a constitutional goal and is capable of being enforced through constitutional remedies under Art. 32.
4. Art. 40: Provides 1/3 reservation in panchayat.
5. Art. 42: Offers free pregnancy care and delivery.
6. Art. 44: It compels the state to implement unchanging civil code, which will help progress the condition of women across all religions. It has, however, not been implemented due to politics.
7. In the case of Sarla Mudgal vs the Union of India, SC has held that in the Indian Republic there is to be only one nation i.e. Indian nation and no community could claim to be a separate entity on the basis of religion. There is a plan to provide reservation to women in parliament as well.

Constitutional Provisions for Children

• Art. 19 A: Education up to 14 yrs has been made a fundamental right. Thus, the state is required to provide school education to children.

In the case of Unni Krishnan vs the State of AP, SC held that right to education for children between 6 to 14 yrs of age is a fundamental right as it flows from Right to Life. After this decision, education was made a fundamental right explicitly through 86th amendment in 2002.

• Art. 24: Children have a fundamental right against exploitation and it is prohibited to employ children below 14 yrs of age in factories and any hazardous processes.

Recently the list of hazardous processes has been updated to include domestic, hotel, and restaurant work.

Several PILs have been filed in the benefit of children. For example, in MC Mehta vs the State of TN, SC has held that children cannot be employed in match factories or which are directly connected with the process as it is hazardous for the children.

In the case of Lakshmi Kant Pandey vs the Union of India, Justice Bhagvati has laid down guidelines for adoption of Indian children by foreigners.

• Art. 45: Urges the state to provide early childhood care and education for children up to 6 yrs of age.

Age and high levels of economic necessity and/or disability combine to create high levels of vulnerability to long-lasting poverty. While old age pension schemes are in place neither the small amounts made available nor the hassle of accessing them make this a solution to the problem of chronic poverty among the elderly.

With the high occurrence of chronic ailments and health care needs of the elderly, declining family size, migration and breakdown of traditional family structures that provided support, this group of the population is awfully vulnerable to poverty.

Constitutional Provisions for Aged

In Constitution of India, entry 24 in list III of Schedule IV deals with the “Welfare of Labour, including conditions of work, provident funds, liability for workmen’s compensations, invalidity and Old age pension and maternity benefits.

Further, Item No. 9 of the State List and Item No. 20, 23 and 24 of the Concurrent List relates to old age pension, social security and social insurance, and economic and social planning.

Article 41 of the Directive Principle of the State Policy has particular relevance to Old Age Social Security. According to this Article, “the State shall, within the limits of its economic capacity and development, make effective provision for securing the right to work, to education and to public assistance in case of undeserved want.”