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MACROECONOMICS & BHAARAT. Mukund Digambar Apte. Chartered Engineer Retired in Major’s Rank after over 20 Years Service as Commissioned Officer In Indian Army. Prof M. D. Apte. Address - ‘UTKARSH’ 32 Rakshak Society, Aundh Camp Post Office,
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Mukund Digambar Apte Chartered Engineer Retired in Major’s Rank after over 20 Years Service as Commissioned Officer In Indian Army
Prof M. D. Apte Address - ‘UTKARSH’ 32 Rakshak Society, Aundh Camp Post Office, PUNE – 411 027, INDIA Tel – (020)- 2727 0332. (Mob) – 9325598347 E-mail:-<mdapte@gmail.com> Education - BE (Civil) Jun ’58 PUNE U. ME (Civil) May ’82 PUNE U. (Construction Management Specialization)
Certified Teacher in YOGA - 1988. Uday Institute of YOGA. • Studied speed-reading Techniques as proposed by Evelyn White and others while visiting USA during 1995 and 1998-99. • Attended 10-Day Vipassana Meditation Residential Course successfully at Dhamma Giri Igatpuri in 1991. Meditation practice continues. • Underwent Transcendental Meditation (T M) Programme successfully at Maharishi Veda Vidnyan Bhawan in late 1999. • Completed TM-Siddhi course at Maharshi Veda Vidnyan Bhawan in early 2000. Succeeded in experiencing Yogic Flying on 03 Apr 2000. Practicing regularly since then. • Completed 3-year correspondence course in Dasbodh and received ‘Prabodh’ certificate in 2004.
AFFILIATIONS. • 1. Member - Institution of Military Engineers. • 2. Fellow - Institution of Engineers (India). • 3. Fellow - Indian Institution of Industrial Engineering. • 4. Member - Indian Society for Training & Development. • 5. Member - Indian Concrete Institute. • 6. Member - India Chapter, American Concrete Institute. • 7. Member – Association of Consulting Civil Engineers (India). • 8. Fellow - Indian Institution of Bridge Engineers
He has conducted many Training Programs and Seminars for Pune Industry on topics like CPM/PERT, Project Management, ISO 9000 Certification, SQC, SPC and other techniques. • National HQ IIIE recognized his contribution to the Profession and awarded him the Institutional Memento for the purpose in Jun 1985. • Since 1988 he guided Candidates for the Semi-annual examinations for entry into National Defence Academy Khadakwasla-Pune at Maharashtriya Mandal Pune. • In 1995 American Biographical Institute (ABI) has recognized him as an International Leader. • In 1997 ABI declared him as "Man of the Year". • The ABI nominated him for their Gold Record of Achievement for 1998. • The ABI intimated him in Jan '99 that his name has been included in the ninth edition of their "International Directory of Distinguished Leadership". • The ABI nominated him for the prestigious title ‘Man of the Year –1999’ • The ABI announced his nomination for award of “The 2000 Millennium”.
Since 1998 he has been included in the Editorial Advisory Board of the Technical Magazine, “New Building Materials & Construction World”, New Delhi • International Publishing House New Delhi has given him "Best Citizen of India" award for 1998 as well as for 2002. India International Society for Unity, Delhi awarded him ‘Rashtriya Ratna Award’ for excellent achievements in his field and Selfless Service to the Nation on 23 Feb 2002. • Prominent Citizens of India , New Delhi has chosen his name for the “Prominent Citizens of India Award” vide their letter dated 26 Nov, 2003. • He has conducted Introductory YOGASANAs courses at WALPOLE MA-02081 USA in Jan-Feb and Apr 1999.
In Nov '98 he participated in the 3-days’ International Operations Management Conference "OPSCON '98" on Supply Chain Management by reading a paper. The Conference was held in Management Development Institute at Gurgaon (Haryana State) near Delhi. • He has participated in International Indology Conference in Goa in Feb ’07 where he presented his idea about Education System in India. • He participated in ‘WAVES 2008’ Conference at Orlando, USA in Jun 2008. He read a Paper “Science of Psychology” there. • He has participated and read papers in many National Seminars/Conferences/Conventions arranged by professional bodies He also has published more than 60 articles on technical and general topics in Professional Journals and Literary magazines, both in English and in Marathi.
MACROECONOMICS & BHAARAT Prof M. D. Apte
DEFINITIONS . GDPValue of annual domestic products in a country NDPGDP corrected by depreciation of assets created\used. In case the production is with FDI, then GDP has to be further reduced by the refund of Investment including interest credited to the foreign country. NNPNow the NDP needs to be further reduced due to the depreciation of intangible assets like natural resources and pollution of nature etc. in the host country resulting from production processes. ECONOMIST – The ‘Finance Man’ who can suggest with confidence suitable economic measures to change the existent economic situation (of a country) to desired conditions at a future (predetermined) date.
MACROECONOMICS-1 This is the Operation of policies of the Government for Economic development of a country. It involves the transactions of MONEY. In reality Economy means ARTHASHAASTRA as mentioned in Bhaarateey culture. Arthashaastra means the policies by which the basic needs (Rotee, Kapadaa & Makaan) of all citizens are fulfilled, they are healthy and happy and thereby in the correct path of (natural) Development to Godhead. Government has to remove any likely obstacle/s in the path of their citizens’ development
MICROECONOMICS-2 Thus first the Government has to assess requirement of resources for their need to fulfill responsibility. Some money also will be required for this. That money is collected from rich people in the form of taxes. The people must be mentally happy and prepared to undertake suitable activity/ies to sustain themselves comfortably. Army needs to be also maintained for the people to feel secure. Money is needed for this as well.
EXPERT ECONOMIST The economist who can suggest with confidence some economic measures so that the existent condition of money market (in a country) can change to desired conditions at a future (predetermined) date and can justify with equal confidence the economic situation as obtained at that future date when it is quite different than desired.
ECONOMIC PROGRESS Economic progress (EP) is measured as percentage of change in GDP of current year from that of previous year. In the year 2005-06 economic progress of India was 8.5%; this includes agricultural progress which was only about 1.5%. (Government is bent upon establishing Special Economic Zones (SEZs) with financial concessions for large industries on lands purchased from farmers. Are farms essential or the Industry for the public? Can we sustain on industrial or farm products? Is economic progress preferable to agricultural progress?. Proposed EP during 2006-07 is expected to be 10%, which is quite high. If we take into account FDI refund as well as depreciation of created and used tangible/intangible assets (including damage to nature and environmental pollution) during the year, the Net EP for 2006-07 will fall well below 3%-4%. 3%-4% is derogatively named ‘the Hindu Rate’ (very low) of Progress by the Indian (modern) economists. The Hindu rate of progress is meant to be sustainable over long. The current (proposed) rate may finally become even negative after a few years. Do we want FDI for economic progress? Improvement seen after borrowing is not strength but only swelling!
NEW STANDARD OF ECONOMIC PROGRESS Shri Joseph Stiglitz is the former chairman of the Council of Economic Advisers and a Nobel Prize-winning economist. He has written a book – ‘Making Globalization Work. He says that under the current Globalization processes and results, the parameter ‘Gross Domestic Product’ (GDP) is not a correct measure. Due to the FDI and faster consumption of Natural Resources in a country, the progress may be retarded in the long run. New parameter to be adopted should be ‘Net National Product’. This comes after deducting the refund to the Investing country as well as depreciation of assets created and under use from the Gross Domestic Products of the host. In case due to the production, any decrease in natural resources and increase in environmental pollution to the host country is resulting, their cost of restoration also needs to be deducted from GDP to arrive at NNP. Comparison of NNP will give more reliable figures. This is likely to be sustainable.
INDIAN FDI OUTSIDE People especially Indian Government appears to be elated that Tatas, Mittals, Birlas, Ranbaxis, Dr. Reddys etc are investing in foreign companies and helping those countries to develop. Actually what is being done is the speedy depletion of natural resources there and Indian capital refund will reduce their NDP more. For the world progress, FDI, whether incoming or outgoing is bad unless it is GIFT.
MONEY AND SOCIAL RELATIONS Prof Cathleen Vohs of the University of Minnesota tested and found correct that establishing larger (financial) gap between ‘have’s and ‘have not’s creates mental barrier between the two groups. Do we want to have it here in India?
MONEY IS A SOCIAL BARRIER BETWEEN PEOPLE. Prof Kathleen Vohs of the University of Minnesota has tested positive the hypothesis that thinking about money can create social barriers. If Government of a country started encouraging some people to earn more money (at the cost of others who cannot afford it) the result will surely be conflict between moneyed and poor people in the country. Money is not a means of progress but a curse on human behaviour. Quantity of money has to be maintained under control (just enough for fulfilling needs of everybody but no more for satisfying greed of anyone) by the Government.
EXAMPLE Papua New Guinea is a poor Asian country. The Government was elated when Anglo-Australian mineral company BHP Billiton opened the OK Tedi gold and copper mine there in 1984. The value of extracted ore showed up in Papua New Guinea’s GDP (which became quite impressive), but all the income from the mine went to the foreign owners. Worst still, the mining inflicted huge environmental damage. Its operators discharged 90 million tons of tailings into the local river system, polluting the main source of livelihood for the 40,000 people living in 120 villages downstream. Indigenous land owners sued BHP and settled for few millions of dollars, but the agreement had indemnified BHP from further damages in early Nineties. Papua New Guinea had to attend to the pollution aspect. Moreover due to speedy mining the ore deposits of the country were depleted thereby the economic progress was unsustainable. The country slid back in regression. Time has therefore come to change GDP from being used as Economic Progress measure. (The example is from Joseph Stiglitz, a Nobel Prize-winning economist and former chairman of the Council of Economic Advisers in his column ‘Brainstorm’ in ‘Fortune’ 02 Oct ’06)
INPUTS BY INDIAN CULTURE Indian culture has told us forcefully that expenditure should be planned to fit in the income known. For consumption never borrow from anybody. If borrowed for consumption, you will be working for the lender only. This is the best suited advice to India since their saving rate is found to be around 30%. In Seventies, there was one Industrial Consultant in Pune (Shri De’Souza, I think) who used to advise his clients to progress with their own internal accruals only (without borrowing from FIs). This advise is ideal for everyone from individual to Nation. Economic Progress should be measured by comparison of NNP only. Doing so with GDP is not correct.
Money is a Means Man is in Natural mode of Development in this life. To become happy he desires to fulfill the needs of his senses as indicated by his mind. He needs money in order to get the desires fulfilled. As they grow he requires more money. The money earning becomes an end in itself. He acquires money ‘anyhow’. But since the needs are never-ending, he is never happy. As a consequence he realizes that to become happy no external help is needed. He reduces his needs as well as money earning desire. He becomes happy and reaches salvation. He is expected to earn money by ethical means (Dharma). He should have his desires/needs (Kaam) as least as possible. By this way he reaches Moksha. Dharma, Artha, Kaam and Moksha are the four Purusharthas he needs following as his aim in this life. He realizes that Money is a means to fulfill minimum essential needs in order to become happy. Otherwise he can never be happy.
BASIC INDIAN ADVICE There are four PURUSHARTHs essential for a person to be in natural Development route Dharma –Ethical and Moral Behaviour at all times. Artha – Artha is means of happy family life and they consist of money for fulfilling necessities like nourishing food, clothing to cover the bodies and shelter for the family, Mental and Physical Health for all and comfort & happiness in domestic life. If we concentrate only on money other aspects will surely suffer. Kaam – Desires to become happy. Our desires must be such that their fulfillment will not be damaging to others in the Nature or the environment. Every person tries to fulfill the wants of his senses (to get happiness) as indicated by his mind. Soon he realizes that the fulfillment of them cannot make him happy as they are never ending and get converted into greed. Greed cannot be satisfied by any effort. Greed is insatiable ever. Moksha – By earning sufficient money by ethical means to fulfill limited and essential needs will lead one to Kaivalya or Mukti (which is his aim) by the end of this life. Dharma is to support throughout the life. Artha and Kaam are to be of controlled quantity for happy life so that Moksha can be ensured at the end. Artha and Kaam should never supersede Dharma. They will only give you KLESHs..
PRACTICE OF MICROECONOMICS Establishment of Special Economic Zones (SEZs) for Industry is bad since they will produce only unessential goods for the public and will consume natural resources at a faster rate than the Nature can sustain. They will give employment to few persons as compared to the oustees from the location. The SEZs will be established in farmland; this will reduce the agricultural land and result in reducing (essential) agricultural produce. Only few (rich industrialists) will become richer and general public poorer. Contradictions in the National consciousness will increase. This is against the Dharmic advice and hence against national interest. Urbanization, Industrialization, Modernization and all such concepts are nothing but the move of Man away from Nature and physical labour and thereby towards destruction. Proponents of these want more money to enable themselves to ‘Purchase’ the natural resources and physical labour (for their comforts) from others. Nearness to Nature and physical labour are essential for happiness.
MAIN CAUSE OF MACROECONOMICS Moneyed (advanced?) states like USA have pushed ‘Globalization’ mainly to have all nations under their (economic) control. That is why developing countries like INDIA desire to become economic Superpowers. In this thought there are two main problems as pointed out by the two world famous professors during their visits to India in Dec 2006. What did they say? :- “(Economic) Superpower USA is forcing developing countries to surrender their markets to American goods which are being given plenty of subsidies to stand in the competition. USA is currently surviving on a debt of US$ 3b a day” – Prof. Stiglitz, Nobel Laureate economist. “INDIA needs money for fast progress only because of Urbanization. Unless it is controlled, she cannot become economic Powerhouse, since cities cannot stand without money whereas the villages do not need it. Thus a large gap is being created between them and it is a dangerous situation” – Prof. Shreepad Tuljapurkar from Stanford University, USA
CONCLUSION It must be ensured that the rate of depletion of any Natural Resource does not exceed the rate of creation of the same (in nature). Pollution creation by human activities must be within the rate at which the Nature can neutralize it. Best way to do any wealth creation from Natural resource is to do so without assistance of machinery or equipment or borrowed capital. Then the progress is likely to be sustained. National consciousness will be compatible. Human Development will be as Nature provides. Non-essential needs should not be planned for fulfillment before essential ones of all citizens are fulfilled. Artha and Kaam must never be given priority over Dharma in National life.
