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CBSE class 11 commerce Economics Development Experience and Economic Reforms

CBSE class 11 commerce Economics Development Experience and Economic Reforms – These notes are for various topics which are useful in CBSE class 11 commerce Economics Development Experience and Economic Reforms

CBSE class 11 commerce Economics Development Experience and Economic Reforms

CBSE class 11 commerce Economics Development Experience and Economic Reforms contains following details.

Comparative Development Experience of India with its Neighbors NCERT Solutions for Class 11 Indian Economic Development

CBSE class 11 commerce Economics Development Experience and Economic Reforms contains following NCERT Solutions

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Question 1. Mention some examples of regional and economic groupings.

Answer. Every country aims to strengthen its own domestic territory. The nations are forming
regional and global economic groupings such as:
1. SAARC. It has 8 countries of South Asia.
2. EU has 25 independent states based on European Communities.
3. ASEAN. It has 5 countries of South East Asia.
4. G-8 (Group of Eight). It has 8 countries.
5. G-20 (Group of Twenty). It consists of 19 world’s largest economies.
Question 2. What are the various means by which countries are trying to strengthen their own domestic economies?
Answer. Countries are trying to strengthen their own domestic economies by:
1. forming regional apd global economic groupings like SAARC, EU, ASEAN, G-8, G-20, etc.
2. By having economic reforms.
Question 3. What similar development strategies have India and Pakistan followed for their respective developmental paths?
Answer. Similar developmental strategies of India and Pakistan are:
1. India has the largest democracy of the world. Pakistan has authoritarian militarist political power structure.
2. Both India and Pakistan followed a mixed economy approach. Both countries created a large public sector and planned to raise public expenditure on social development.
Question 4. Explain the Great Leap Forward campaign of China as initiated in 1958.
Answer. Communist China or the People’s Republic of China, as it is formally known, came into being in 1949. There is only one party, i.e., the Communist Party of China that holds the power there. All the sectors of economy including various enterprises and all land owned by individuals was brought under governmental control. The Great Leap Forward programme faced many problems. These were:
1. In the earlier phase, a severe drought occurred in China and it killed some 3 crore
people.
2. Soviet Russia was a comrade to communist China, but they had border dispute. As a result, Russia withdrew its professionals who had been helping China in its industrialization bid.
Question 5. China’s rapid industrial growth can be traced back to its reforms in 1978. Do you agree? Elucidate.
Answer. Starting 1978, several reforms were introduced in phases in China. First, agriculture, foreign trade and investment sectors were taken up. Commune lands were divided into small plots. These were allotted to individual households for cultivation. The reforms were expanded to industrial sector. Private firms were allowed to set up manufacturing units. Also, local collectives or cooperatives could produce goods. This meant competition between the newly sanctioned private sector and the old state-owned enterprises.
Question 6. Describe the path of developmental initiatives taken by Pakistan for its economic development.
Answer. The developmental initiatives taken by Pakistan were:
1. In the late 1950s and 1960s, Pakistan introduced a variety of regulated policy framework (for import substitution industrialisation). The policy combined tariff protection for manufacturing of consumer goods together with direct import controls on competing imports.
2. The introduction of Green Revolutioned led to mechanisation of agriculture. It finally led to a rise in the production of foodgrains. This changed the agrarian structure dramatically.
3. In the 1970s, nationalisation of capital good industries took place.
4. In 1988, structural reforms were introduced. The thrust areas were denationalisation and en¬couragement to private sector.
5. Pakistan received financial support from western nations and remittances from emigrants to the Middle East. It helped in raising economic growth of the country.
Question 7. What is the important implication of ‘one child norm’ in China?
Answer. One-child norm introduced in China in the late 1970s is the major reason for low population growth. It is stated that this measure led to a decline in the sex ratio, that is, t
proportion of females per 1000 males.
Question 8. Mention the salient demographic indicators of China, Pakistan and India.
Answer. We shall compare some demographic indicators of India, China and Pakistan.
1. The population of Pakistan is very small and accounts for roughly about one-tenth of China or India.
2. Though China is the largest nation geographically among the three, its density is the
lowest.
3. The population growth is highest in Pakistan followed by India and China. One-child norm introduced in China in the late 1970s is the major reason for low population growth. They also state that this measure led to a decline in the sex ratio, that is, the proportion of females per 1000 males.
4. The sex ratio is low and biased against females in all the three countries. There is strong son- preference prevailing in 11 these countries.
5. The fertility rate is low in China and very high in Pakistan.
6. Urbanisation is high in both Pakistan and China with India having 28 per cent of its people living in urban areas.
Question 9. Compare and contrast India and China’s sectoral contribution towards GDP. What does it in¬dicate?
Answer. Sectoral Distribution of Output and Employment:
1. Agriculture Sector. China has more proportion of urban people than India. In China in the year 2009, with 54 per cent of its workforce engaged in agriculture, its contribution to GDP is 10 per cent. In India’s contribution of agriculture to GDP is at 17 per cent.
2. Industry and Service Sectors. In both India and China, the industry and service sectors have less proportion of workforce but contribute more in terms of output. In China, manufacturing contributes the highest to GDP at 46 per cent whereas in India it is the service sector which contributes the highest. Thus, China’s growth is mainly contributed by the manufacturing sector and India’s growth by service sector.
Question 10. Mention the various indicators of human development.
Answer. Parameters of human development are:
1. HDI— (a) Value—higher the better.
(b) Rank—lower the better.
2. Life expectancy—higher the better.
3. Adult literacy rate—higher the better.
4. GDP per capita (PPP US $)—higher the better –
5. Percentage of population below poverty line (on $1 a day)—lower the better.
6. Infant mortality rate (per 1000 live births)—lower the better.
7. Maternal mortality rate (per 100,000 live births)—lower the better.
8. Percentage of population having access to improved sanitation—higher the better.
9. Percentage of population having access to improved water source—higher the better.
10. Percentage of population which is undernourished (% of total) – lower the better.

CBSE class 11 commerce Economics Development Experience and Economic Reforms

NCERT Notes For Economics Class 11 Economic Reforms Since 1991

CBSE class 11 commerce Economics Development Experience and Economic Reforms – Economic reforms or structural adjustment is a long term multi dimensional package of various policies (Liberalisation, privatisation and globalisation) and programme for the speedy growth, effeciency in production and make a competitive enviornment. Economic reforms are adopted by Indian Govt. in 1991.
Learning objectives
1 Meaning of new economic policy
2 Need for economic reforms
3 Features of new economic policy
(i) Liberalization and its measure
(ii) Privatization and its measure
(iii) Globalization and its measure
4 Positive impact of LPG
5 Negative impact of LPG
Q1.What is economic reforms?
Ans. The new economic policy started by the government since 1991 in order solve the Economic crisis and to accelerate the rate of economic growth is called Economic Reforms. It is also known as new economic policy which consists of Liberalization, Privatization and Globalization (LPG).
Q2.Why there was need for economic reforms?
Ans. 1. Mounting fiscal deficit : Fiscal deficit of the government had been mounting year after year on continuous increase in non-development expenditure. Due to persistent rise in fiscal deficit there was corresponding rise in public debt and interest payment liability there was possibility that the economy might lead to debt-trap situation. Thus it becomes essential for the government to reduce its nondevelopment expenditure and restore fiscal discipline in the economy.
2. Adverse balance of payment :When receipts of foreign exchange fall short of their payments, the problem of adverse balance of payment arises. Despite the restrictive policy adopted by the government till 1990 import substitution and export promotion the desired result could not be meet. Our export could not compete in terms of price and quality in the international market. As a result there was slow growth of export and rapid increase in imports. Accordingly the burden of foreign debt services increased tremendously and leading to depletion of foreign exchange reserves.
3.Gulf Crises: On account of Iraq war in 1990-91 prices of petrol shot-up . Besides india used to receive huge amount of remittances from gulf countries in terms of foreign exchange.
4. Poor performances of PSU’s: Due to poor performances of public sector undertakings degenerated in to a liability. Most of public sector undertakings were incurring loss and their performance was quiet satisfactory. On account of these factors, it becomes imperative for the government to adopt new economic policy or to initiate economic reforms.
5 .Rise in price:Due to rise in prices of food grains there was pressure of inflation Prior to 1991.
Which deepen the economic crisis from bad to worse.
6 .Fall in foreign exchange reserves: In 1990-91 India’s foreign exchange reserves fall to such
a low level that there was not enough to pay for an import bill of even10 days. In such situation the government had to helplessly resort to policy of liberalization as suggested by the World Bank.
Q3 what is New Economic Policy? Briefly explain it.
Ans. New Economic Policy refers to adoption of Liberalisation,Privatisation and Globalization(LPG) which aims at the rendering the economy more efficient, competitive and developed.

CBSE class 11 commerce Economics Development Experience and Economic Reforms

ELEMENTS OF NEW ECONOMIC POLICY
1. Liberalization: It means to free the economy from the direct and physical control imposed by
the government.
Measures adopted for Liberalization:
(i) Abolition of industrial licensing.
iii) Expansion of production capacity
(iv) Freedom to import capital goods
2. Privation: It refers to general process of involving the private sector in the ownership or
management of state owned enterprises. It imply partial or full ownership and management of public sector enterprises by the private sector. Measures adopted for Privatization:
(i) Contraction of public sector
(ii) Disinvestment of public sector undertaking
(iii) Selling of shares of public enterprises
3. Globalization: It men’s integrating the economy of a country with the economies of other countries under condition of free flow trade and capital and movement of persons across borders. Measures adopted for Globalization:
(i) Increase in equity limit of foreign investment
(ii) Partial convertibility of Indian rupees
(iii) Long –term trade policy
(iv) Reduction in tariffs.
Q4. Mention the positive impact of LPG polices
1. a vibrant Economy
2. Stimulant to Industrial production
3. Check on fiscal deficit
4. Check on inflation
5. Improvement in consumers sovereignty
6. A substantial increase in foreign exchange reserves.
7. Flow of private foreign investment.
8. India as an emerging economic power
9. Shift from monopoly market to competitive market
Q5. Mention the negative impact of LPG polices.
1. Neglect of agriculture
2. Urban concentration of growth process
3. Economic colonialism
4. Spread of consumerism
5. Lopsided growth process
6. Cultural erosion
CBSE class 11 commerce Economics Development Experience and Economic Reforms – CBSE Assignment for Class 11 Economics -Reforms Since 1991 . Based on CBSE and CCE guidelines. The students should read these basic concepts to gain perfection which will help him to get more marks in CBSE examination.

Unit (VI) Economic Reforms Since 1991

Factor’s responsible for Economic reforms.

1. Fall in foreign exchange reserve.

2. Adverse balance of payments

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3. Maunting fiscal deficit.

4. Rise in prices

5. Failure of public enterprises.

6. Gulf crisis.

* Stabilisation measures : – These are short run measured. Indroduced by Govt to control rise in price, adverse balance of payment and fall in foreign exchange reserve.

* Structural adjustment : These are longrun policies the goal of structurcal reforms is to abolish controls, eliminate bereocratic hurdus. and redtapism and make the decision making process efficient and transparent.

* In the new economic policy 1991, Structural reforms can be seen with respect to :

1. Liberalisation.

2. Privatisation

3. Globalisation.

Liberalisation means removing all unnecessary control and restriction like permits licenses. protectionist duties quotas ect

Question

1. Economic reforms refers, those measures which are adopted for the speedy growth of economy, efficiency in production and make a competitive environment.

2. Due to increasing fiscal deficit the interest paid by the Govt. for the borrowings become 36.4% of the Govt. expenditure. So economic reforms become essential for the Govt.

3. Liberalisation.

4. Stock of foreign currency held with the Govt. at given point of time called foreign exchange reserve.

5. Prior to liberalisation, tax structure was highly complicated and evasive. Fearing a heavy burden of taxation it promote evade the payment of tax, so tax reforms become essential for the Govt.

6. Direct taxes are those taxes, the burden of which can not be shifted on to other’s eg. Income tax.

7. Indirect taxes are those taxes the burdon of which can be shifted on to other for example sales tax.

8. Devaluation refers to lowering in the official value of a currency with respect to gold or foreign currency.

9. Privatisation is the general process of involving the private sector in the ownership of operation of a state owned enterprises.

10. Globalisation may be defined as a process associated with increasing open ness growing economic interdependence and deepening economic integration in the world economy.

CBSE class 11 commerce Economics Development Experience and Economic Reforms

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