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Volume II Issue I January 2014

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SCHOLARS WORLD-IRMJCR Online: ISSN 2320-3145, Print: ISSN 2319-5789

www.scholarsworld.net [email protected] Volume. II, Issue. I, January 2014

CONTENTS

1.

Social Science

SECULAR HUMANISM V/S. SOCIAL CONSERVATISM:ANALYZING CANADIAN

HOUSE OF COMMONS DEBATESON SAME-SEX MARRIAGE MANON TREMBLAY,(Canada)

01-18

2.

Finance

A STUDY ON FINANCIAL STABILITY ANALYSIS OF TOKUMMA AGRICULTURAL

PRIMARY MULTIPURPOSE COOPERATIVES HORO GUDURU WOLLEGA ZONE,

OROMIA REGIONAL STATE, ETHIOPIA KIDANE MENGISTU , DR.A.TAMILARASU (Ethiopia)

19-24

3.

Chemistry

EFFECT OF RATE OF DYEING ON THE FASTNESS PROPERTIES OF INDIGO DYED

COTTON FABRICS

JABAR. J. M., (Ondo State)

25-29

4.

Management

OCCUPATIONAL STRESS AND COPING IN MAHARASHTRA POLICE PERSONNEL:

A COMPARATIVE STUDY BAL RAKSHASE, (India)

30-37

5.

Marketing

MARKETING MIX OF LIFE INSURANCE COMPANIES IN THRISSUR DISTRICT – A

STUDY DR.E.MUTHUKUMAR, DR.G.ALEX RAJESH, M.SATHISKUMAR, (India)

38-47

6

Mathematics Medicine

AN EPIDEMIOLOGICAL STUDY ON CLINICALLY SUSPECTED RHEUMATOID

ARTHRITIS RURAL PATIENTS OF EASTERN UTTAR PRADESH, INDIA AUSAF AHMAD,T.B. SINGH, USHA, (India)

48-54

7.

Business Administration

FACTORS AFFECTING ENTREPRENEURIAL APPROACH: DOES RELIGION

MATTER? IRFAN AHMED,DR. GHAZALA SHAHEEN, HAMAYU, SYED MUHAMMAD ALI,(Pakistan)

55-63

8. Management

GROWTH OF APPAREL INDUSTRY IN INDIA: PRESENT AND FUTURE ASPECTS NAMRATA ANAND, VANDANA KHETARPAL, (India)

64-70

9.

HRM

EMBRACING DIFFERENTLY-ABLED MANPOWER TO BOOST TALENT AT

WORKPLACE TANIA MAHAPATRA, (India)

71-76

10.

English Literature

EFFECTS OF TRADE ACTIVITIES ON LEXICAL VARIATION AT THE ALGERIAN/

MOROCCAN BORDER MRS. ASMAA BOUCHEKIF, (Algeria)

77-80

11.

Philosophy

REVISITING THE VALUES OF HISTORICAL RESEARCH-POST MODERNISTIC

APPROACH PROF. DEBASHRI BANERJEE, (India)

81-85


www.scholarsworld.net [email protected] Volume. II, Issue. I, January 2014

12.

Buddhist Studies

THE SIGNIFICANCE OF PEACE IN BUDDHIST PERSPECTIVE DR. MANISH MESHRAM, (India)

86-93

13.

Economics

IMPACT OF EURO ZONE CRISIS ON INDIAN GROWTH (CONSUMPTION,

INVESTMENT, NET EXPORTS AND GOVERNMENT SPENDING) SIDDHANT GOEL, (India)

94-105

14.

Commerce

THE INTERNATIONAL DEBT CRISIS AND ITS IMPACT ON INDIA MS. D. ANNETTE CHRISTINAL, S. DINESH, (India)

106-110

15.

Industrial Management

WOOL & WOOLLEN TEXTILE INDUSTRY DR. L. SATHEESKUMAR, MRS.S.RADHA, (India)

111-115

16.

Commerce

MEDICAL TOURISM IN INDIA – IT’S STRENGTH, WEAKNESS, OPPORTUNITIES

AND THREATS (SWOT) S. S. ROSE MARY, (India)

116-120

17.

English Literature

THE IMPACT OF MGNREGS ON THE MIGRATION OF LABOUR FROM RURAL

AREAS DR.D.BHASKAR, (India)

121-126


www.scholarsworld.net [email protected] Volume. II, Issue I, January 2014 [1]

SECULAR HUMANISM V/S. SOCIAL CONSERVATISM:

ANALYZING CANADIAN HOUSE OF COMMONS

DEBATESON SAME-SEX MARRIAGE

MANON TREMBLAY,

Professor. University of Ottawa, Faculty of Social Sciences, School or Political Studies,

University Street, Ottawa, Canada

ABSTRACT

In 2005, Canada became the fourth country in the world to open civil marriage to lesbian and gay couples. This victory occurred when social conservatism was at its peak in Canada and its message was being advocated in parliamentary debates mainly by the Conservative Party of Canada (CPC). In this paper, I analyze House of Commons debates on same-sex marriage that took place in 2005. My objective is to identify the main arguments advanced in these debates and assess their meaning in the light of broader discourses. I suggest that three discourses stood behind these debates: the charter discourse, the family discourse, and the psycho-societal discourse. Each of these discourses draws on two broad ideological perspectives: secular humanism and social conservatism. One conclusion of this research is that, over the short term, social conservatism does not threaten the right to equal marriage for lesbians and gays in Canada. Keywords: Canada; Homosexuals; Parliamentary Debates; Same-Sex Marriage; Secular

Humanism; Social Conservatism



INTRODUCTION:

Lesbians and gays can marry in a handful of countries around the world. Canada opened this option to same-sex couples in July of 2005 by adopting the Civil Marriage Act (Bill C-38). This victory for the lesbian and gay movement can be seen in the context of a long history of struggle for lesbian and gay equality in Canada. Smith (1999) has shown that lesbians and gays demanded equality long before the Canadian Charter of Rights and Freedoms was promulgated, as eloquently illustrated by the “We Demand” demonstration held on 28 August 1971 on Parliament Hill (for an overview of the ten demands made at the time, see Jackson & Persky, 1982: 217–20). This said, in Smith’s (2008: 20) view, “Lesbians and gays were the unintended beneficiaries” of the Canadian Charter of Rights and Freedoms. Indeed, Canadian courts made a number of rulings, especially starting in the mid-1990s, in favour of equality for lesbians and gays. Thus, without minimizing lesbian and gay political activism in the field of civil society, the fight to open civil marriage to same-sex couples was measured against the yardstick of the Charter and waged in the courts. Although these rulings have generated a number of analyses (among others, Bala, 2006; Smith, 2000, 2005, 2007), the debates in Parliament over Bill C-38 have not received similar scrutiny. In this paper, I hope to fill that gap. My objective in this paper is to identify the main arguments made during the debates on Bill C-38 in the House of Commons in 2005 and assess their meaning in the light of broader discourses. I posit that these arguments were based on three discourses: the charter discourse, the family discourse, and the psycho-societal discourse. Although they are distinct, each discourse draws on two broad ideological perspectives: secular humanism and social conservatism. First, I describe the context that led the Canadian Parliament to adopt Bill C-38. Then I explain the methodology used to analyze the parliamentary debates and present the results of my analysis. I conclude with a reflection on the significance of the results of this research.

THE CIVIL MARRIAGE ACT (BILL C-38): (BACKGROUND)

The decision to open civil marriage to lesbian and gay couples was part of a larger context of litigation strategy and social movement activism. Adoption of Bill C-38 may be broadly interpreted as the consequence of a series of battles in judicial arenas regarding the constitutionality of limiting civil marriage to opposite-sex couples in light of the equality rights grounded in section 15 of the Canadian Charter of Rights and Freedoms (the Charter). From 2001 to 2005, eleven of the twelve provincial and territorial courts that heard Charter challenges put forward by same-sex couples invalidated the traditional (e.g., opposite-sex) definition of civil marriage (Hurley, 2005: 7–12; Larocque, 2006: 109–126; Smith, 2008: 152–59). In addition, the courts suggested a new definition of civil marriage based on equality rights grounded in section 15 of the Charter, making no reference to the sex of those who wed. In other words, civil marriage is no longer exclusive to opposite-sex couples in Canada. According to Matthews (2005), the decisions made in the courts helped to create public opinion favourable to opening civil marriage to lesbian and gay couples. In fact, in 2004, shortly before Bill C-38 was adopted, 58% of Canadians said that they were in favour of same-sex marriage (Langstaff, 2011; see also Bannerman, 2011). Since the responsibility of defining who can marry is a federal power, the consensus of provincial and territorial court decisions about the constitutional need to extend the right to civil marriage to lesbian and gay couples forced the federal government to change the definition of civil marriage to “the lawful union of two persons to the exclusion of all others.” In the second half of 2003, the federal government asked the Supreme Court of Canada to render an opinion on whether its plan to open civil marriage to same-sex couples complied with the Constitution of Canada. In December 2004, the Supreme Court issued a favourable opinion. Not only did the Supreme Court confirm that Parliament has the jurisdiction to define capacity to marry, but it invoked the “living tree” doctrine to justify its position that marriage can no longer exclude same-sex couples: “One of the most fundamental principles of Canadian constitutional interpretation [is] that our Constitution is a living tree which, by way of progressive interpretation, accommodates and addresses the realities of modern life. Read expansively, the word ‘marriage’ in s. 91(26) does not exclude same-sex marriage” (Reference re Same-Sex Marriage, 2004: 3). Aside from this activity in the judicial arena, the plan to open civil marriage to same-sex couples provoked social movement activism by both supporters and adversaries of same-sex marriage (Farney, 2012: 120–21; Malloy, 2009). Although there was no consensus among lesbians and gays on the opening of civil marriage to same-sex couples (notably among those who Smith [2007] identified with the queer cultural frame), a number of entities defended the bill, including Canadians for Equal Marriage, EGALE, the United Church, unions, and human rights groups. On the other side of the fence were organizations such as the Campaign Life Coalition, the Canada Family Action Coalition, the Catholic Civil Rights League, the Evangelical Fellowship of Canada,



Focus on the Family Canada, and REAL Women. In the view of Malloy (2011), these anti-same-sex marriage groups did not coordinate with each other simply because it was unnecessary to do so with such a clear objective in their sights: opposing the opening of civil marriage to same-sex couples (but see Haskell, 2011). In February 2005, the federal government introduced Bill C-38 in the House of Commons. The political parties were generally quite polarized in the debates on lesbian and gay marriage. In fact, 158 Members of Parliament (MPs) voted for the bill and 133 voted against it, including 32 Liberal MPs. However, the main opposition was driven by the Conservative Party of Canada (CPC), which encompassed a strong religious constituency (Farney, 2012: 119–28; McDonald, 2010: 13–49; Rayside, 2011): all but three Conservative members voted against the bill. Two more parties—both left-leaning—were represented in the House of Commons at this time, the Bloc Québécois (BQ) and the New Democratic Party of Canada (NDP); most of their members supported the bill. Bill C-38 was adopted by the House of Commons on 28 June 2005 and by the Senate on 19 July 2005, and it received royal assent a day later.

METHODOLOGICAL DETAILS:

To identify the main arguments made during these debates and assess their meaning in the light of broader discourses, I analyzed the House of Commons debates on Bill C-38, which lasted from February to June 2005. However, considering the major constraints that frame parliamentary debates (for example, political parties’ control over the speeches given by their members in the House), what can we learn from such a research question, notably on questions as politically sensitive as that of sexuality? First, public debates on sexuality in Canada have largely been impermeable to religious arguments, as politicians have preferred a liberal, secular approach based on positive law at least since the partial decriminalization of homosexuality in 1969 (Chambers, 2010; Herman, 1994). Yet, Bill C-38 broke with this tradition, as a number of MPs justified their objection to same-sex marriage with religious arguments. Does this presage a greater influence of religion on public decision making with regard to sexuality in Canada, or even a change of paradigm? Second, this research is intended to help us better understand a category of electors who, until recently, were not in the habit of practising such obvious activism on the federal legislative scene. In fact, in Malloy’s (2009, 2011; see also McDonald, 2010: 36–37, 80, 74, 341; Pettinicchio, 2010; Warner, 2010: 146–87) view, the issue of same-sex marriage provoked unprecedented activism among social conservatives, for several reasons: first, there was consensus on opposition to opening civil marriage to lesbian and gay couples; second, the CPC conveyed their message in the political and parliamentary arenas; finally, the issue of same-sex marriage reaches to the core of the Evangelical identity with regard to marriage and family (Cox, 2005; Malloy, 2011). This study not only sheds light on a little-studied aspect of Stephen Harper’s CPC electoral base, but also gives an idea of the degree of influence that social conservatives seem to exercise within the party—at least at the time of the lesbian and gay marriage debates. Third, relatively few studies have dealt with same-sex marriage in Canada, only a handful of these have explored arguments for and against (Bannerman, 2011; Dickey Young, 2006; Ménard, 2003; Mulé, 2010; Smith, 2007; Young & Boyd, 2006), and none—to my knowledge—have analyzed Bill C-38 from the angle of the parliamentary debates that it generated. Even though these debates were heavily controlled, they are nevertheless significant for discerning dominant discursive models—in other words, what is acceptable and what is unacceptable in a society—with regard to sexuality. For example, Young and Boyd (2006) have shown that the debates in the Canadian House of Commons Standing Committee on Justice and Human Rights on the Modernization of Benefits and Obligations Act in 2000 and on same-sex marriage in 2003 were conducted according to a strict paradigm of equality and was devoid of any criticism of marriage and the family, or of the power relations inherent to these institutions (see also Mulé, 2010). Similarly, in a study on one court ruling in Canada (Halpern) and one in the United States (Goodridge), Smith (2007) showed that the queer cultural frame used to interpret same-sex marriage is rarely expressed in a legal discourse dominated by the liberal rights frame. All indications are that parliamentary debates on Bill C-38 did not include rebel voices critical of marriage and the family as patriarchal and heteronormative institutions (Auchmuty, 2004; Cossman & Ryder, 2001; Ettelbrick, 1997; Marso, 2010; Mulé, 2010; Onishenko & Caragata, 2010; Richardson, 2005; Robson, 2002; Young & Boyd, 2006). From another angle, this study will bring to light the discourses developed by the MPs who were in favour of same-sex marriage to make it acceptable and respectable. Following the approach developed in grounded theory (Charmaz, 2006), I first read all debates that took place in the House of Commons of Canada on Bill C-38 and separated out the arguments for and against same-sex marriage. Second, using the method that Strang and Meyer (1993: 492) call “theorization”—that is, “self-conscious development and specification of abstract categories and the formulation of patterned relationships



such as chains of cause and effect,” I grouped the different arguments into a small number of general categories (which, in the analysis, I call “discourses”). In other words, each category is articulated around a theme and contains a group of arguments that, together, offer a coherent and meaningful reading of lesbian and gay marriage. To discern these general categories, or what Goffman (1974: 21) has called “schemata of interpretation,” I consulted works that analyze the framing of the positions used in the debates on same-sex marriage (Eskridge & Spedale, 2006: 20–31; Paternotte, 2011: 21–41; Tadlock, Gordon, & Popp, 2007). Bannerman (2011) identified two frames used by the Canadian media to report on same-sex marriage: a frame describing lesbian and gay marriage as “a symbol of fracture, of a split in the country over core values,” and a frame in which it is “an affirmation of a Canadian identity and the high value Canadians place on equality and diversity” (p. 600). Studying the American Goodridge and Canadian Halpern court decisions, Smith (2007) distinguished three frames that proponents and opponents mobilized during the debates over lesbian and gay marriage: the rights frame, mainly used by those supporting the same-sex marriage; the queer cultural frame, articulated by some lesbians and gays opposed to marriage; and the morality frame, deployed by those rejecting the scenario of opening civil marriage to same-sex couples. Pettinicchio (2010) argues that two frames have dominated the debates on lesbian and gay marriage: equality (related to rights and constitutional issues) and morality (concerned with values, tradition, family, and religion). Although this material offers an excellent basis for analysis of the parliamentary debates on lesbian and gay marriage in Canada, it does not take account of many of the arguments advanced by MPs, as is demonstrated when the Canadian Hansard on same-sex marriage is read using the grounded theory method. Indeed, after reading debates in light of this method, I argue that three discourses—the charter discourse, the family discourse, and the psycho-societal discourse—structured House of Commons debates on same-sex marriage in 2005. These discourses find their justifications in two broad ideological perspectives: secular humanism and social conservatism. It is worth noting that the discourses were not monopolized by one camp in particular; rather, each was mobilized by both supporters and adversaries of lesbian and gay marriage—although to different degrees. Taking the family discourse as an example, some opponents argued that if lesbians and gays could marry it would devalue the institution of marriage, whereas some proponents argued, on the contrary, that same-sex marriage would strengthen the institution. The mobilization of a single discourse by both sides is not uncommon in the dynamic of parliamentary debates. In effect, unlike court rulings (e.g., Bala, 2006; Smith, 2007) or news reports (e.g., Bannerman, 2011), in which the protagonists did not confront each other directly but dialogued through go-betweens (via judges or journalists), in the parliamentary debates those supporting and those rejecting lesbian and gay marriage confronted each other in real time and face to face. The sides were in an even more confrontational position because the discourses from which they drew their arguments were two broad ideological perspectives (secular humanism and social conservatism) that, although essentially irreconcilable, have also been intrinsically linked, especially since the 1970s, and were expressed, respectively through the lesbian and gay movement and the social conservatism movement (Fetner, 2008; Herman, 1994). Farney (2012: 12–27) identifies three currents of Canadian conservatism: traditionalist, which sees the traditional (that is, heterosexual) family as a natural institution that must be supervised not by the state but by civil society institutions such as the church; laissez-faire, which holds the position that the state should not interfere in private life—or in any sphere of life; and social conservative, which emerged essentially in the 1960s and 1970s in reaction to movements associated with the sexual revolution—the women’s movement and the gay liberation movement. Both of these movements have challenged traditional gender roles and advocated for sexual morals emancipated from traditional conservative morality based on the heterosexual family dedicated to reproductive sexuality. Because they blatantly question traditional gender roles, the issues of abortion and social acceptance of homosexuality have passionately mobilized social conservatives. Essentially, social conservatism sets out to protect and promote traditional (heterosexual) morals and family, because they arise from natural law. Unlike traditionalist and laissez-faire conservatisms, social conservatism sees the government not only as an important actor in regulating the private life of citizens according to moral principles held up as superior and inviolable, but deems that there is a duty to defend and promote the traditional morality that, up to now, has served humanity well and is the guarantor of its perpetuation. Many social conservatives are religious churchgoers who see religion as having a legitimate role in politics, notably to protect the (heterosexual, of course) family, the basis of social order. Far from violating the principle of separation of church and state, social conservatives see religion as a counterweight to secular humanism which, in their view, has for too long undermined the state, and even as an essential tool for diversifying the perspectives that influence public decisions—whence the state’s obligation to protect freedom of religion



(including the ability to express dogmas without fear of reprisals). That said, social conservatism may also be thought of in secular terms. Claiming that the virtues of the traditional family form the essential fertile ground for the re/production of workers whom the economy needs to prosper not only oversteps religious engagement, but makes it possible to reconcile social and laissez-faire conservatisms. The argument that a family formed of a woman and a man (preferably married, even in a civil marriage) constitutes the ideal environment for raising a child because it offers stability and crystallizes the universal law of difference between the sexes is another example of secular social conservatism. As my analysis will show, certain arguments expressed in favour of same-sex marriage were inspired by this current. For its part, the lesbian and gay movement reflects secular humanism and positive law, as well as the principles that they embody: rejection of all metaphysical truth and use of critical reasoning; the valuing of the individual and her or his intrinsic capacities with a view to making a better, more tolerant and plural world, focused on human wellbeing; and the right for all to seek happiness and autonomy with regard to how they conduct their life and control their fate. According to this ideological perspective, each human being is endowed with a series of inalienable and intrinsic rights and freedoms guaranteed by liberal democracies, of course, but also more qualitative or substantial rights necessary to her or his self-realization and happiness. Notions such as “human rights,” “human dignity,” “substantive citizenship,” “respect for the individual and her or his choices,” and “personal development” are the hallmarks of secular humanism. In this perspective, lesbian and gay marriage is positioned not only as a consequence of legal status (e.g., the equality for all before the law), but also as an attribute of the human condition on the individual and collective scales: marriage must be accessible to all, not only because of the intrinsic equality of human beings, but because it can contribute to personal happiness and a better society. I will now examine the debates on same-sex marriage that took place in 2005 in the House of Commons of Canada in the light of the three discourses uncovered through the methodological approach described above. From time to time, I leave the parliamentary debates and make links with extra-parliamentary advocacy groups in favour of or against lesbian and gay marriage, and with academic works. This approach has two goals: to show how the debates on same-sex marriage fit within a broader societal dynamic, and to put the observations of this research into perspective with the results obtained by other researchers.

ANALYZING SAME-SEX MARRIAGE IN THE HOUSE OF COMMONS DEBATES IN CANADA:

As stated above, my assumption in this paper is that the numerous arguments put forth for and against opening civil marriage to lesbian and gay couples during the House of Commons debates in 2005 may be synthesized into three discourses—the charter discourse, the family discourse, and the psycho-societal discourse. These discourses draw upon two broad ideological perspectives: secular humanism and social conservatism. I will now present each of these discourses, and give some examples of their use in excerpts from parliamentary debates. THE CHARTER DISCOURSE:

The charter discourse was without a doubt the most frequently used in Canadian parliamentary debates on lesbian and gay marriage. This is not surprising, as the legislative debates were a response to a series of court decisions regarding the constitutionality of excluding lesbian and gay couples from civil marriage in light of the equality rights guaranteed by the Charter. This discourse was used by both supporters and adversaries of same-sex marriage; it contains arguments that draw on both secular humanism and social conservatism. The secular humanism perspective fits within a larger international discourse on human rights (Kollman & Waites, 2009; Lalor, 2011; Paternotte, 2011: 22–31). It promotes a liberal conception of citizenship that encompasses a series of inalienable and intrinsic rights and freedoms for every human being: equality, freedom of conscience and of religion, freedom of expression, and so on. A key principle of this discourse is that all human beings are equal before the law and no one should suffer discrimination on the basis of her or his personal attributes (sex or gender, religious faith, language, sexual orientation, and so on). As for social conservatism, few weeks before the parliamentary debates on opening civil marriage to lesbian and gay couples began, the Supreme Court of Canada issued an opinion on the protection of religious freedom as guaranteed by section 2a of the Charter (Reference re Same-Sex Marriage, 2004: 5). If both—those who opposed and those who favoured lesbian and gay marriage—interpreted this ruling as mandating the government to protect freedom of religion, the interpretations of each side regarding the nature of this governmental protection differed.As mentioned above, the Charter was at the heart of the debates on Bill C-38. Yet, proponents and opponents of lesbian and gay marriage did not



emphasize the same rights and freedoms to defend their respective positions: the former gave priority to equality rights and the latter to freedom of religion and, to a lesser extent, freedom of expression.

EQUALITY RIGHTS:

The legal principles of equality and identical treatment—and, more precisely of equality interpreted in terms of non-discrimination—have constituted the fundamental arguments of those demanding the opening of civil marriage to same-sex couples. According to this reasoning, since the state should not discriminate, it should treat same-sex and opposite-sex couples exactly the same. Thus, equality means applying the same rule to all cases, including both opposite- and same-sex couples, notwithstanding any other consideration:

. . . our Canadian Charter of Rights and Freedoms . . . guarantees that every individual is equal before and under the law and has the right to equal protection and equal benefit of the law without discrimination. I believe this bill [C-38] follows that principle. I believe anything less than the right to marriage and the right to use the name marriage would be unlawful and would be unjust. (Michael Savage, Liberal, 21 March, 17H32)

Arguments based on equality, identical treatment, and non-discrimination placed opponents to lesbian and gay marriage in a delicate position, to say the least. In fact, what opposition could they bring to bear? They generally supported the Charter, yet they were challenging the wider philosophical framework inspiring its equality rights provisions—that is, the human rights rhetoric and the argument that the right to marry is a human right to which lesbians and gay should have access. Stephen Harper, leader of the Conservative Party and of the Official Opposition at the time, explained,

Fundamental human rights are not a magician’s hat from which new rabbits can constantly be pulled out. The basic human rights we hold dear: freedom of speech, freedom of religion, freedom of association, and equality before the law. . . . Same sex marriage is not a human right. This is not my personal opinion. It is not the opinion of some legal adviser. This reality has already been recognized by such international bodies as the United Nations Commission on Human Rights. (16 February, 16H26)

Furthermore, those who opposed lesbian and gay marriage argued that it was not an issue of rights (whether human rights or Charter rights) but of society, as it involved redefining a social institution: “The debate is not about human rights. It is about marriage. It is not just about redefining the word marriage. It is about reconstructing a historically heterosexual social institution that has served as the cornerstone of human society for millennia” (Randy Kamp, Conservative, 24 March, 13H49). As mentioned above, social conservatism aims to protect and promote traditional (heterosexual) morals and family. That said, opponents of lesbian and gay marriage pled for the creation of an institution that would be identical in rights and obligations to marriage, but reserved exclusively for couples formed of same-sex partners. According to the separate but equal doctrine—which, in the House of Commons debates, did not receive as much attention as it has in the United States because the civil rights movement has had few influence in Canada—equality does not necessitate identical treatment. In fact, profound natural differences (the interpretation of which served to construct the traditional gender roles regime) justify differential treatment, without overly sullying equality or resorting to discrimination. Jason Kenney (an MP identified with the social conservative wing of the CPC) thus explained that excluding same-sex couples from marriage is not discriminatory at all, because of the intrinsically different nature of heterosexual and homosexual unions, the former pursuing a reproductive goal and the latter not: “. . . the social, cultural and historical evidence leads to one conclusion: that marriage is tautologically a heterosexual institution. It therefore cannot constitute, in my view, unjust discrimination to limit the application of the word ‘marriage’ to those relationships which it essentially describes” (21 February, 17H30). The separate but equal option was rejected by the proponents of lesbian and gay marriage, which used the reasoning that separate, is not equal. MP Bill Siksay (NDP) elucidated this view:

Separate or new institutions or legal arrangements will not meet the test of the value of our citizenship. Civil union applied only to gay and lesbian couples is not an answer because separate is not equal. Separate water fountains, separate sections on the bus, separate beaches, none of these are acceptable in societies that value the full equality of their people. I and my party believe the same is true of civil marriage. (16 February, 17H18)



Although a number of countries have created regimes to recognize same-sex unions without opening the door to civil marriage (see ILGA website), the federal government did not take this route, essentially because the Constitution of Canada does not confer on it the power to create such institutions (Reference re Same-Sex Marriage, 2004: 14–15, 20–22). Another reason for which supporters of lesbian and gay marriage rejected the separate but equal doctrine is that it crystallizes the tyranny of the majority over minorities: it legitimizes the idea that the majority can create a parallel institution in which to ghettoize a minority. After all, such an approach comes into conflict with the principle of equality of individuals so dear to secular humanists. In fact, it was to prevent such abuse that the Charter was adopted: “We adopted a Charter of Rights and Freedoms and enshrined it in our Constitution to protect minorities against arbitrary treatment, even from Parliament and the legislature” (Marlene Catterall, Liberal, 21 March, 17H50). The protection of minorities argument was the subject of a fascinating war of words between proponents and opponents of opening civil marriage to lesbians and gays as it took the debate into the terrain of multiculturalism. It was the eve of a federal election, and both the Conservative and Liberal parties were courting minorities. The Conservative leader was seeking to broaden his party’s electoral base, up to then limited to rural areas of western Canada, to the urban and suburban areas of central Canada. The debate on same-sex marriage offered the potential to attract certain socially conservative immigrant communities (Flanagan, 2007: 200–201; Langstaff, 2011). In fact, Stephan Harper’s strategy was to draw socially conservatives of all religious faiths and political convictions into the CPC (McDonald, 2010: 36–37, 39, 210). As for the Liberal Party, its association with the Charter and minority rights only highlighted the Conservative Party’s antagonism toward the rights liberalism that had inspired the Charter, accordingly stirring up the fears that the CPC provoked with regard to social conservatism (Pettinicchio, 2010; Rayside, 2011). Multiculturalism having conferred constitutional recognition and protection—that is, a quasi-sacred status—on the ethnocultural identity, it is not surprising to observe that many MPs in favour of opening civil marriage to same-sex couples portrayed lesbians and gays as a minority whose rights the Charter should protect and who contribute to the multicultural identity of Canada, even the Canadian identity itself. As secular humanism suggests, the idea is to protect and value the individual with a view to the collective wellbeing. Prime minister Paul Martin eloquently illustrated this reasoning:

The charter was enshrined to ensure that the rights of minorities are not subjected—are never subjected—to the will of the majority. The rights of Canadians who belong to a minority group must always be protected by virtue of their status as citizens, regardless of their numbers, and these rights must never be left vulnerable to the impulses of the majority. . . . When we as a nation protect minority rights, we are protecting our multicultural nature. We are reinforcing the Canada we cherish. We are saying proudly and unflinchingly that defending rights . . . is at the very soul of what it means to be a Canadian. (16 March, 15H30 and 15H38)

As Smith (2007, 2008: 158-159) notes, by making itself the advocate for lesbian and gay marriage, the Liberal Party not only created a closer association with the Charter and with Canadian identity, but it held up recognition of lesbian and gay rights as a source of pride for a country composed of minorities. Altman (cited by Epstein, 1999: 43; see also Eskridge & Spedale, 2006: 14; Murray, 1979) observes that in the United States, another country with many minorities, it is widely accepted that lesbians and gays can be defined according to a quasi-ethnic, essentialist identity approach, which he explains by the fact that ethnicity constitutes an identitary marker that is more significant than class in that country. If all minorities enjoy Charter protection, it is because noncompliance with this principle for one minority could trigger a domino effect: if, today, lesbians and gays have their rights violated, tomorrow the rights of other minorities might suffer the same fate. The issue is one of rights rather than morals, as Liberal Paul DeVillers explains:

I am a member of the franco-Ontarian linguistic minority. If we can successfully make the argument to set aside the charter on the issue of civil marriage because it is a moral rather than a legal question then, in the case of minority language rights, we could suggest dropping official languages policies in this country because they are too expensive. It is a question of savings. That is the risk. (24 March, 13H39)

This is why those in favour of Bill C-38 vigorously rejected the idea that a national referendum and the notwithstanding clause should be used before Parliament could abolish the heterosexual monopoly on marriage. The leader of the BQ, Gilles Duceppe, stated, “Some people are talking about a referendum. That proposal,



although it is cloaked in the appearance of democracy, is thoroughly anti-democratic. The rights of a minority cannot be left to the discretion of the majority. It is contrary to common sense and contrary to the spirit of justice” (16 February, 12H51). Prime Minister Martin explained why he could not use the notwithstanding clause:

But there is a reason that no prime minister has ever used it [the notwithstanding clause]. For a prime minister to use the powers of his office to explicitly deny rather than affirm a right enshrined under the charter would serve as a signal to all minorities that no longer can they look to the nation’s leader and to the nation’s Constitution for protection, for security, for the guarantee of their freedoms” (16 February, 15H35).

On the other hand, without denying that lesbians and gays constitute a minority, opponents to opening marriage to same-sex couples interpreted the notion of “minorities” in the religious sense. Stephen Harper stated,

The Liberals may blather about protecting cultural minorities, but the fact is that undermining the traditional definition of marriage is an assault on multiculturalism and the practices in those communities. All religious faiths traditionally have upheld the belief that marriage is a child-centred union of a man and a woman, whether Catholic, Protestant, Jewish, Hindu, Sikh or Muslim. All of these cultural communities, rooted in those faiths, will find their position in society marginalized. (16 February, 16H34)

According to this social conservative–inspired reasoning, if lesbians and gays could marry, it would collide with the values of cultural communities defined from a religious viewpoint, even marginalize them socially, thus going counter to Canadian multiculturalism. Seen from another angle, not only did those opposed to opening civil marriage to same-sex couples not think that lesbians and gays belong to the multicultural fabric of Canada as a quasi-ethnic-identity minority group, but they maintained that same-sex marriage is contrary to multiculturalism because it infringes on the values and beliefs of religious communities resistant to opening civil marriage to lesbians and gays. Yet, as the next section shows, although the dominant message conveyed by religious groups was a rejection of lesbian and gay marriage, religions did not form monolithic blocs, and some religious currents pronounced themselves in favour of opening marriage to lesbians and gays, also in the name of religious freedom.

FREEDOMS OF RELIGION AND OF EXPRESSION:

Whereas the equality right was the component of the charter discourse most widely used by those in favour of opening civil marriage to same-sex couples, betraying their secular humanist ideological position, protection of freedom of religion (and secondarily of expression) was the main warhorse of those opposed. The emphasis placed by those rejecting same-sex marriages on the basis of freedom of religion also reflected unprecedented activism by Christian Evangelicals in Canada, notably because lesbian and gay marriage reaches to the core of the Evangelical identity with regard to marriage and family (Malloy, 2009, 2011; Pettinicchio, 2010). A number of MPs opposed to Bill C-38 in fact underlined the scope of this activism during their speeches in the House, evoking the large number of calls, letters, and e-mails received in opposition to the government’s bill. A major argument used by MPs opposed to opening civil marriage to lesbians and gays was that the Charter and Bill C-38 do not sufficiently protect freedom of religion and its concomitant freedom of expression. Several reasons were mentioned. The first was constitutional: the guarantees that Bill C-38 provides regarding the freedom of religion are voided, because the federal Parliament does not have jurisdiction over the solemnization of marriage—which is a provincial responsibility:

The Supreme Court of Canada clearly stated that the section [2] is utterly ultra vires, which is that it is beyond the power of the federal Parliament to indicate what it would do, how it would act or how provinces should act in matters within their own exclusive jurisdiction and that the solemnization of marriage is within the sole jurisdiction of the provinces. . . . That section should not even be there because it is beyond the legislative capacity and competence of the Parliament of Canada. (Tom Wappel, Liberal, 21 February, 12H07)

In a dialogue of the deaf, those in favour of lesbian and gay marriage responded, on the contrary, that the Supreme Court had ruled that the Charter protects freedom of religion: “We have here the clearest statement of the highest court of the land saying that the charter protects religious liberties and religious institutions will make their own choice” (Bill Graham, Liberal, 21 February, 16H03).



A second argument was that in case of conflict between, on the one hand, equality rights for lesbians and gays and, on the other, freedom of religion, the latter has bowed to the former: “In case after case after case, when religious freedoms clashed with so-called gay rights, the courts in this country caved in to the gay rights lobby” (Pat O’Brien, Liberal, 21 February, 15H25). Those in favour of opening civil marriage to same-sex couples denied this reading, claiming instead “that religious protections already in some cases take priority over other charter rights. [For instance] the Catholic Church continues to refuse the ordination of women in a post-charter world” (John Maloney, Liberal, 21 March, 17H00). A third argument was that protection of freedom of religion requires more than the basic option for religious officials to refuse to perform marriages that conflict with their beliefs. Indeed, this protection implies a larger array of practices:

Protecting religious freedom goes far beyond just protecting the rights of churches and other religious bodies to maintain the traditional definition of marriage. It also means preserving the right of churches to publicly preach and teach their beliefs related to marriage. It means preserving the rights of religious schools to hire staff who respect [sic] their doctrines and practices. It means protecting justices of the peace and civil marriage commissioners who do not want to solemnize marriages that are not in accordance with their beliefs. It means preserving their charitable and other economic benefits as public institutions. It means preserving the right of any public official to act in accordance with his or her beliefs. (Myron Thompson, Conservative, 21 April, 13H32)

According to this interpretation, freedom of religion (and expression) generates a large set of rights and benefits, such as the capacity to publicly express convictions regarding lesbian and gay “lifestyles.” Yet, this possibility also opens the door to public slander of lesbians and gays under the cover of freedom of religion and of expression. In fact, Art Hanger (Conservative, 27 June, 17H13), an MP identified with the social conservative fringe of the CPC, was uneasy about this prospect. Taking as an example the Epistle to the Corinthians (which provides that homosexuals, among other lost sheep, will not be admitted to the kingdom of God), he wondered if the preachers who read it would now be safe from lawsuits (and, if so, how) or would end up in front of a human rights tribunal (see Haskell, 2011 on this core argument against same-sex marriage). His colleague Brian Jean (Conservative) believed that if Bill C-38 were adopted, “it will affect the ability to preach sacred text and ultimately force the change to the text itself, including the Bible and the Quran” (27 June, 16H08). In fact, these examples raise the question of what degree of latitude religious institutions have to discriminate with complete impunity—that is, under the cover of freedoms of religion and expression. It is possible that there is great latitude: in Trinity Western University v. British Columbia College of Teachers (2001), the Supreme Court of Canada recognized the right of a private Evangelical Christian university to teach in its master’s program that homosexuality is sinful, even if this might constitute discrimination against lesbians and gays (Moon, 2011). On this subject, Wintemute (2002: 134) asks, “Should we permit religious expression about LGBT persons that would be considered hate speech if it were about a racial minority?” As for the possibility of civil registrars (that is, laypeople) refusing to marry lesbian and gay couples in the name of freedom of religion, MPs in favour of opening civil marriage to same-sex couples considered that they simply could not do so, because of the lay nature of the state itself:

It is something else, however, to lead people to think that even secular public officials, whose job it is to apply the law, could fail to do so in the name of their personal religious convictions. All are equal before the law. From the moment that Parliament passes legislation . . . this legislation applies everywhere in Canada and there is no room for people who refuse to apply it. People who do not agree with the interpretation of the law will have to do something else. (Réal Ménard, BQ, 27 June, 15H49)

The principle of separation of church and state, and thus of the latter’s lay nature, has been at the top of the list of responses by those in favour of same-sex marriage. However, opponents and supporters of lesbian and gay marriage comprehended this principle in different ways. For the former, “[t]he concept of the separation of church and state is to protect religion, not to allow the state to coerce religious organizations” (Vic Toews, Conservative, 24 March, 11H35). Proponents of same-sex marriage, rather, understood freedom of religion as meaning that religions do not impose their views on society. This perspective arises from secular humanism’s rejection of any metaphysical truth. As Gilles Duceppe (BQ, 16 February, 16H46) explained, “…the religion of some should not become the law for others. While the right to freedom of religion exists and ought to remain a basic principle of our societies, religion must not impose its own principles on society at large and serve as the foundation for the law governing us all.”



Still on the subject of the lay nature of the state, a number of MPs in favour of lesbian and gay marriage argued that because Bill C-38 deals with civil and not religious marriage, it preserves the line between church and state:

It strikes me, on the civil side, that this is exactly what the role of the state is really about. It is our job and the job of the provinces to declare when people are married legitimately from a civil point of view. The religious part, whether it is legitimate to recognize same sex marriage in a church, mosque, temple or synagogue setting, is not up for debate, at least not by us in this place. Each religion is currently being challenged by this issue as each government on the civil side. It is not for us legislators to determine what religious institutions can or cannot do; in fact this bill explicitly protects religious institutions for that reason. (John Godfrey, Liberal, 21 March, 15H56)

Opponents of same-sex marriage, however, denied such a distinction between civil and religious marriage. For Jason Kenney (Conservative), “[t]here is no foundation in law, practice, tradition or history for a distinction between civil as opposed to any other kind of marriage, including religious marriage” (27 June, 12H14). Borrowing from the discourse of libertarian liberalism, he argued that because marriage is related to religion and not to the state, the state simply does not have the power to modify it: “I submit that this Parliament does not have the power to change the meaning of essential social institutions which predate this Parliament itself. Marriage predates the Canadian state. It predates the modern state itself. It is a natural institution” (27 June, 12H09). The underlying idea is that civil law on marriage draws its philosophical roots from canon law; consequently, there is no distinction between civil and religious marriage simply because marriage is religious by definition: “Marriage vows are a bond with God. Marriage is more than just two couples uniting. God is part of it, and joining the union according to His will. God is present and part of the marriage. Marriage is a religious institution” (Mark Warawa, Conservative, 21 March, 13H05). On the other hand, those approving of the right of lesbians and gays to marry civilly presented the freedom of religion argument to promote same-sex marriage. In fact, the opening of civil marriage to same-sex couples would recognize the right of churches to marry lesbians and gays should they wish (and not simply to bless their union). In other words, religious freedom also implied that religious communities that wanted to marry same-sex couples, and that were unable to at the time because marriage was an institution reserved exclusively for couples formed of a woman and a man, could now do so. BQ MP Richard Marceau explained this point:

. . . is it not true that today, if the bill does not pass, and same sex marriage remains illegal, religious groups . . .who want to marry same sex couples, will not be able to do so because same sex marriage is illegal. If Bill C-38 does pass, it would permit these people—meaning these groups—who want to marry same sex couples to do so, while also protecting the right of the Catholic Church, the Baptist Church and other religious groups not to marry same sex couples if they so choose. In other words, will we not achieve the appropriate balance by protecting the right of some to perform marriages if they so choose and the right of others to not perform such marriages, if that is their choice? (16 February, 17H03)

Not all religions reject lesbian and gay marriage categorically. For instance, some churches in Canada support same-sex marriage, including the Canadian Unitarian Council, the Metropolitan Community Church, and the United Church of Canada. What is more, Dickey Young (2006) notes that individuals and groups within most religious organizations in Canada have supported equality for lesbians and gays with regard to civil marriage. NDP MP Tony Martin offered an excellent example of this: he assessed his religious convictions in the light of secular humanism to justify his endorsement of lesbian and gay marriage:

I have not dissociated myself from the church. I cannot because it is that same church, whose leadership disagrees with me today, that inspires me to say this. It is the right thing to do [to support Bill C-38]. It was the spirit of Vatican II that challenged me to inform my conscience and that informed conscience says that we must reach out to [MPs] Bill [Siksay], Scott [Brison], Libby [Davies] and Réal [Ménard] and all members of the gay and lesbian community and say that they are as whole and as wholesome as all humanity and worthy of all the gifts life has to offer . . . (24 March, 15H09)

In sum, the charter discourse honed the weapons of both supporters and adversaries of same-sex marriage by mobilizing the legal principle of equality interpreted in terms of non-discrimination (a component of the secular humanism ideology), for the former, or liberties of religion and expression (pointed out by several social



conservatives), for the latter. The influence of religion, furthermore, was not limited to the charter discourse, but also coloured the family discourse, at least for opponents to lesbian and gay marriage. THE FAMILY DISCOURSE:

This discourse is articulated around the historical, anthropological, and sociological significance of marriage and the family. For opponents of lesbian and gay marriage, marriage is the prelude to family, composed of a married woman and man with children, whereas for proponents a family is defined as two individuals committed to each other, married or not, with children or not. Such polarized visions of marriage and family were expressed in the debates on same-sex marriage, with a “traditional” model promulgated by one side and a myriad of other family structures by the other side. It is interesting to note that in the family discourse, secular humanism and social conservatism seemed to inspire positions that were less diametrically opposed, because a number of supporters of same-sex marriage made arguments that, although secular in nature, were in full agreement with social conservatism. The “traditional” model, which draws on the theological perspective on marriage (Dickey Young, 2006), was promulgated largely by social conservatives who opposed lesbian and gay marriage. Seen by this group as prevalent since time immemorial and in all societies, the “traditional” model consists of the union of a woman and man, to the exclusion of all other people, with the goals of procreating and ensuring the future of society: “Marriage has been a fundamental concept of societies for thousands of years across all continents and cultures involving the union of men and women for the implicit purpose of generating children and establishing the family as one of the building blocks of society” (Gordon O’Connor, Conservative, 21 March, 15H47). Furthermore, MP O’Connor continued, it is because heterosexual marriage—that is open to procreation—serves not only the interests of two people but also of their children and of society that “through a series of administrative privileges, states choose to support heterosexual couples that marry” (21 March, 15H47). This is a good example of heterosexism, a “system that favours opposite-sex sexuality and relationships and presumes that everyone is heterosexual or that heterosexual attraction and relationships are the only norm, and therefore superior” (Knegt, 2011: 53). The difference between the sexes and their complementary nature is a founding principle of the “traditional” model of marriage and family; in this regard, same-sex marriage may be perceived as threatening the symbolic order of society (Butler, 2004: 40–56). By its very nature, marriage is a heterosexual institution, based on the difference between the sexes and their complementarity in procreation, which only a woman and a man can naturally accomplish. What is more, by combining the two versions of the human being, the female and the male, the married heterosexual couple not only guarantees the right of children to know and be raised by their biological parents, but offers a complete model for the balanced development of children. In this sense, marriage carves out a space whose mission is essentially altruistic, in which a woman and a man unite and pool their respective resources to raise their children, the citizens of tomorrow (for a theoretical explanation of this argument, see Eskridge & Spedale, 2006: 28–31, 179–88). The fact that two women or two men cannot create life through their sexual relations not only justifies definitively closing the doors to an institution devoted to procreation (even if these same-sex couples are responsible for children born of a previous heterosexual union, or have adopted, or, in the case of lesbians, have had artificial insemination), but labels these relationships as being of a lesser social value than heterosexual unions: “It is quite a stretch to suggest that a same sex relationship, which can never result in procreation without the unnatural involvement of a third person, is as socially valuable to us as heterosexual relationships” (Pat O’Brien, Liberal, 21 February, 12H44). In the end, MP O’Brien stated, he feared that the opening of civil marriage to lesbian and gay couples would lead only to a “devaluing of marriage, such as the increase in common-law unions and more lax divorce laws” (21 February, 13H52). In a more apocalyptic vision, Stockwell Day (Conservative, 27 June, 20H29), an MP identified with the social conservative wing of the CPC, evoked the spectre of Pandora’s box (Eskridge & Spedale, 2006: 170, 188–189): he wondered how, once civil marriage was opened to same-sex couples, it would be possible not to recognize bigamous and polygamous unions, especially since, in his view, arguments for all of these causes were similar (see also Haskell, 2011). Yet, proponents of same-sex marriage saw a strategy for fortifying the institution of marriage, which had been undermined by heterosexuals, according to BQ MP Richard Marceau: “I would say that giving homosexuals, who have fought so hard for it, the right to marry means opening the door to people who believe in marriage and in this institution . . . That would strengthen this institution, which has been quite badly treated by heterosexuals over the last 50 years” (27 June, 13H21).



But this was not the only response given by supporters of same-sex marriage to the social conservative–inspired historical and essentialist arguments of the opposing camp. Another consisted of questioning the causality link postulated between marriage and procreation. In fact, marriage is not a prerequisite for procreation, as non-married people have children, and not all marriages result in children. To this, those who opposed same-sex marriage replied, “The very nature of marriage is that it is a procreative relationship. Homosexual unions lack this defining feature. Therefore, the inability to have children for heterosexual marriages because of age or physical dysfunction are [sic] exceptions to an established norm. The inability procreate [sic] is a norm for homosexual relationships” (Jeff Watson, Conservative, 27 June, 17H45). Furthermore, the links between marriage and family are complex, and without a doubt more diverse than how adversaries to same-sex marriage posed it:

If married couples want to have kids, that is wonderful. There are also couples who are not married who choose to have children. The problem I have, and I put it back to the member, is why he is so intent on creating this little box and either one fits in it or one does not. It seems to me that marriage is also about diversity. It is about different kinds of relationships, whether it is between a man and a woman who have children or do not, or adopt children or whether it is between two women who have children or do not. (Libby Davies, NDP, 21 February, 16H55)

To this plea for individual diversity and autonomy in terms of lifestyle, opponents of same-sex marriage claimed that procreation outside of traditional marriage has harmful consequences for children: “Children born outside of marriage have poor socio-economic outcomes and require far greater intervention by the state to compensate for parenting shortfalls” (John McKay, Liberal, 21 March, 12H54). In fact, “Time and time again, studies have confirmed that our children benefit most when they are raised in a home with both a mother and a father” (Garry Breitkreuz, Conservative, 2 May, 13H21). Yet, results of studies come to the conclusion that heteroparental families do not have an advantage over their homoparental counterparts (see, among others, Crowl, Ahn, & Baker, 2008; Eskridge & Spedale, 2006: 117–88; Gelderen, Bos, Gartrell, Hermanns, & Perrin, 2012). The consequences for children of opening civil marriage to same-sex couples also concerned supporters of lesbian and gay marriage. They expressed the fear that failure to give lesbians and gays access to civil marriage would have the consequence of making children who grow up in homoparental families second-class citizens compared with children raised in heteroparental families:

. . . by denying same sex couples with children access to marriage, we are creating a second class of children in this country. We have done away with the old days when we had illegal children, bastard children who had no rights. What we are now creating is another group of children. The children of a same sex couple will not be equal under the law to the children of a heterosexual couple because their parents cannot get married . . . (Hedy Fry, Liberal, 24 March, 15H45)

This opinion is an example of a social conservative–inspired argument advanced by those in favour of same-sex marriage, in that the equality of children living in a homoparental family is realized by their parents’ capacity to live in compliance with the heterosexual norm. Another response by proponents of same-sex marriage to the opponents’ arguments of a historical and essentialist nature was to moderate the idea that marriage everywhere has always had a religious and heterosexual nature. In fact, some authors have shown that marriage has followed a much more motley course over the centuries (Coontz, 2005: 10–11, 24–28). According to Liberal Paul Harold Macklin (21 February, 12H50), the history of civil marriage is that of an institution that has evolved over time, notably by gradually opening its doors to groups previously excluded. MP Marlene Jennings (Liberal, 24 March, 11H16) saw in legislation enabling previously banned unions, notably between blacks and whites in the United States, more evidence of the capacity of marriage to evolve. Following the secular humanist perspective, several supporters of lesbian and gay marriage have argued that the essence of marriage has evolved from an institution devoted to procreation to one consecrating the legal and social recognition of the love connection civilly uniting two consenting adults engaged in a relationship of interdependence, mutual aid, and holistic wellbeing, in the framework of a shared and lasting life together (Paternotte, 2011: 27–29). Since marriage is no longer devoted exclusively to procreation but now includes the holistic wellbeing of two people, it can no longer be limited to a woman and a man and should be opened to same-sex couples. This notion of wellbeing is at the centre of the psycho-societal discourse.



THE PSYCHO-SOCIETAL DISCOURSE:

The psycho-societal discourse, which draws fully on secular humanism, is nevertheless not completely rejected by social conservatives. Defined very broadly, the psycho-societal discourse is based on a guiding idea that individuals’ wellbeing is a consequence of a policy of recognizing the equal dignity of identities in a liberal society (Taylor, 1992: 25-73). To justify his support for Bill C-38, Liberal MP John Godfrey cited the decision rendered in 2003 by Justices McMurtry, MacPherson, and Gillese of the Ontario Court of Appeal (e.g., Halpern decision), a judgment that describes the essence of the psycho-societal discourse:

Human dignity means that an individual or group feels self-respect and self-worth. It is concerned with physical and physiological integrity and empowerment. Human dignity is harmed by unfair treatment premised upon personal traits or circumstances which do not relate to individual needs, capacities or merits. It is enhanced by laws which are sensitive to the needs, capacities, and merits of different individuals, taking into account the context underlying their differences. Human dignity is harmed when individuals and groups are marginalized, ignored, or devalued, and is enhanced when laws recognize the full place of all individuals and groups within Canadian society. Human dignity within the meaning of the equality guarantee does not relate to the status or position of an individual in society per se, but rather concerns the manner in which a person legitimately feels when confronted with a particular law. (21 March, 15H54)

As it does in the charter discourse, the notion of equality lies at the very heart of the psycho-societal discourse, with the noticeable difference that this discourse adopts a more practical approach. In effect, equality is posed in a less abstract and procedural manner than is the case with the charter discourse—that is, as a right enshrined in the Charter—and more as a principle of life in society that is conveyed by tangible manifestations. The opening of civil marriage to lesbian and gay couples constituted not only a concrete public decision to recognize the equal dignity of lesbian and gay identities, but a response to social exclusion. In other words, it is not only because of simple humanity that lesbians and gays must be able to accede to the institution of civil marriage on the same footing as heterosexuals, but also because of a history of intolerance toward them that has undermined their potential for equal accomplishment as human beings (Taylor, 1992: 41):

Gay bashing still exists. Gays are still attacked and killed. There is a high rate of suicide among gays and lesbians in our country. Hate propaganda still exists. I mention that because it is so very important for us to look at our country’s history and a vulnerable group that has been stigmatized and victimized in the last 40 years has been allowed to come out of the shadows. We all know members of this House who are gays or lesbians. We know they are essentially the same kind of people as we are. We know they have the same kind of dreams that we have. We know that they have the same kind of love that we have, whether we are heterosexual or not. (Andrew Telegdi, Liberal, 21 February, 17H08)

Since Egan v. Canada (1995), sexual orientation has been considered an illegal reason for discrimination analogous to other criteria listed in section 15(1) of the Charter; yet, discrimination toward lesbians and gays has not disappeared in everyday life. As those who support same-sex marriage point out, and in the spirit of justices McMurtry, MacPherson, and Gillese of the Ontario Court of Appeal cited above, homophobia seriously infringes on a policy of recognition of the equal dignity of lesbian and gay identities. Homophobia consists of an attitude of rejection of, or even hate for, homosexuality, but also toward lesbians and gays, encouraging them to hide their sexual preference for fear of physical reprisals, referred to by NDP leader Jack Layton: “In 1989 Alain Brosseau, a waiter leaving the Chateau Laurier, was killed because some people thought he was gay. In the shadow of this Parliament building he was thrown from a bridge directly behind the House because who he was believed to be was deemed unequal” (5 April, 13H25). Opening the doors of a major social institution—civil marriage—to couples formed of two people of the same sex would contribute not only to the wellbeing and happiness of lesbians and gays who get married, but also to building a better society by making homosexuality acceptable to the public and by turning same-sex marriage into an effective tool for fighting against homophobia (Takács & Szalma, 2011). These goals are squarely in line with the secular humanist perspective. Some opponents of lesbian and gay marriage cast doubt on the extent, or even the existence, of homophobia in Canada (for example, see Jason Kenney, Conservative, 27 June, 12H09), whereas others claimed that opening civil marriage to lesbians and gays would not guarantee that they would be better accepted in society: “For



some same sex marriage advocates, the issue is acceptance, which is what they think they will get if their union is called marriage. I am sorry to say that I think they are mistaken. Government simply cannot legislate acceptance” (Monte Solberg, Conservative, 5 April, 13H38). Moreover, the adoption of such a statute might even exacerbate homophobia: “I find it very challenging to see how expanding the definition of civil marriage will benefit homosexuals. On the contrary, the public reaction to the redefinition of marriage could lead to a rejection much more profound than what this minority has experienced thus far” (Raymond Bonin, Liberal, 27 June, 19H46). This excerpt is somewhat reminiscent of the story of Sodom and Gomorrah, which inspires one of the main arguments used by social conservatives to claim that God condemns homosexuality. But homophobia is not only external; it may also mark lesbians and gays from within, and ultimately cause them to commit suicide: “When a man or a woman realizes that he or she is a homosexual and faces discrimination, rejection and denial of rights, they suffer. This can end in tragedy, driving some to suicide” (Gilles Duceppe, BQ, 16 February, 16H45). Belonging to a minority due to a physical trait or identity feature may mean living on the margins of society, which has psychological consequences—a psychosocial phenomenon that Riggle, Thomas and Rostosky (2005) call “minority stress”: the denigration and rejection associated with a socially stigmatized group increase the stress of daily life, thus limiting the individual’s psychological and physical development (giving rise, for example, to eating disorders such as anorexia and bulimia, anxiety, substance abuse, decreased self-esteem, self-mutilation behaviours, and so on). This notion is particularly interesting because it fits with the increasing use of health as a standard for public policymaking. It would therefore be pertinent for future research to explore how arguments about health support a growing “health-ization” of public decisions. Moreover, such arguments enjoy strong appeal in that no one—not even those who oppose lesbian and gay marriage—can legitimately argue against public decisions that contribute to citizens’ wellbeing. Opponents of same-sex marriage recognized that marriage contributes to the psychological, social, and economic wellbeing of all family members (see, for example, Pat O’Brien, Liberal, 21 February, 13H47), and that the state and society profit from encouraging stable relationships that involve interdependence and mutual support. But, paradoxically, they do not see this as a reason to open civil marriage to lesbian and gay couples. The notion of citizenship, that is a core value of the secular humanist perspective, forms a bridge between the psychological and the societal. On the one hand, citizenship consists of a group of rights and duties that the state confers, under certain conditions, on all citizens in their intrinsic quality as human beings and is grounded in the principles of equality and non-discrimination. On the other hand, citizenship bears the more qualitative substratum of “reciprocal recognition among equals” (Taylor, 1992: 50): it implies that an individual, although endowed with all the rights to equality, must be recognized by her or his peers as a full citizen. Thus, if lesbians and gays cannot access the same important institutions of civil society (including civil marriage) as do other citizens, it is possible that they are not considered to be full citizens:

This issue is more than just the consideration of civil marriage. It is actually about the full citizenship of gay and lesbian people, our full citizenship. Gay and lesbian people cannot be considered full citizens if key institutions of our society are considered out of bounds to us. We cannot be considered full citizens if civil marriage, one of those central institutions, is seen to be outside our experience and our reach. (Bill Siksay, NDP, 16 February, 17H18)

Furthermore, citizenship also implies that a person feels at ease within a society, that she or he can be fulfilled and happy, which, in turn, will contribute to the wellbeing and development of the society. Bill Graham (Liberal) explains:

. . . one of the benefits of being open and tolerant to people with diverse points of view and cultural backgrounds is precisely what being modern is all about. The city of Philadelphia in the United States has been seeking recently to create a sense of itself as being gay friendly. If we read the literature, it tells us that being gay friendly is not just about trying to attract a certain group of people to go to the city. It is a signal about being open, the fact that it can bring anybody into the city, somebody who will go there to work because they feel comfortable, are not discriminated against and can contribute, whether they be a computer programmer, an artist, a lawyer or anything else. (21 February, 16H09)

This utilitarianist perspective reflects that opening civil marriage to same-sex couples would result in a set of material and immaterial gains for Canadian society, such as improving political representation and strengthening democracy, promoting a forward-looking image for Canada on the international scene, and affirming the country’s resolutely modern character.



Those who oppose lesbian and gay marriage did not see any positive effects to opening civil marriage to lesbian and gay couples; rather, they saw the contrary. Some MPs claimed that adoption of the Civil Marriage Act would cast a shadow on Canadian democracy. Nina Grewal (Conservative), for instance, opined, “In a genuine democracy, the courts do not legislate. Enacting laws is a legislative function that is properly exercised only by elected representatives of the people” (24 March, 15H58). Other MPs fear that the international community would severely judge Canada for its moral arrogance:

It is in the court of international opinion that Canada may find itself subject to a rather rude awakening. . . . Often forgotten in these relativistic debates is that there are globally held moral views that are broadly shared and that it is the height of arrogance to assume and presume that changes to these long held views would be accepted based on some sort of subservience to the enlightened thought of industrial nations. Imposing a relativistic view of marriage on such countries is certainly little more than the folly and fancy of those whose sense of moral self-absorption leaves them blind to the morality of the rest of the world. (Peter Goldring, Conservative, 2 May, 12H18)

The Conservative leader is following a similar line of thought when he wonders whether Canadian society would be one in which “even our most basic structures can be reinvented overnight for the sake of political correctness” (Stephen Harper, 21 February, 16H38) Both Goldring and Harper make a clear criticism of what they perceive to be the undue relativism of secular humanism. As mentioned at the beginning of this article, court rulings in Canada have contributed greatly to the equality of lesbians and gays (Smith, 2008: 20); as it happens, these rulings have been framed by a constitutional state based on secular humanism.

CONCLUSION:

My objective in this article was to identify the main arguments made in House of Commons debates on same-sex marriage that took place in 2005. An analytical approach of the debates guided by the grounded theory method revealed three discourses that structured these debates: the charter, the family, and the psycho-societal discourses. These discourses draw upon two broad ideological perspectives: secular humanism and social conservatism. My research has led to three findings. First, concurring with the conclusions of Mulé (2010), Smith (2007) and Young and Boyd (2006), my research showed that House of Commons debates on same-sex marriage in 2005 were conducted largely according to a strict paradigm of equality, quashing any criticism of marriage and the family and of power relations inherent to these institutions. Such silences appear less disturbing in parliamentary committees and in the courts, as these public decision-making spaces do not have a representative mandate. This is not the case in the House of Commons, whose mission is to represent—at least in theory—all Canadians and their needs, demands, and interests. What is more, some theoreticians have posited that groups with a minority social status should be represented by their own in politics because they have experiences of discrimination in common and are therefore better positioned to understand and represent these constituents (Klein, 1984: 105–122; Mansbridge, 1999; Phillips, 1995; Williams, 1998). Yet, the few lesbian and gay MPs who took part in the debates on same-sex marriage did not reflect what Smith (2007) calls the queer cultural frame; instead, they promoted the rights frame and thus refused to represent voices that were critical of marriage. As a consequence, my research forces me to nuance the idea that representatives from minority groups are better representatives of their respective communities’ interests. It also suggests that a second look should be taken at the representative mandate of elected lesbians and gays. Second, my research has shown that although public debates on sexuality in Canada have been largely impermeable to religious arguments, at least since the partial decriminalization of homosexuality in 1969, the arrival in the House of Commons of a larger contingent of MPs identified with social conservatism forces us to recognize that this ideological current has now a voice in Canadian politics. In fact, the debates on lesbian and gay marriage revealed not only that Canadian conservatism has a social component, but also that it is influential within the CPC. A recent study, however, suggests that this influence may be unevenly exerted. In their analyses of the vote on Bill C-38 in June 2005, Marvin Overby, Raymond and Taydas (2011) noted that social conservatism may have had a greater influence on rookie and electorally insecure Conservative MPs. Finally, since it formed the federal government in 2006, Stephen Harper’s Conservative Party has not shown an inclination to implement its social conservative agenda—at least, with regard to sexuality issues. According to Farney (2012: 126–28), since the end of the saga surrounding lesbian and gay marriage in 2005, social conservatives have not been as influential within the CPC, and this has somewhat allayed apprehension regarding



the increasing influence of religion on the public decision-making process with regard to sexuality in Canada, or even a change of paradigm on the matter. In fact, recent developments seem to indicate that there is tension between social conservatives and Prime Minister Harper with regard to sexuality issues. In December 2006, Harper’s minority government introduced a convoluted motion “asking the House to call on the government ‘to introduce legislation to restore the traditional definition of marriage without affecting civil unions and while respecting existing same-sex marriages’” (quoted in Farney, 2012: 125). After this motion was defeated, Harper promised not to reopen the debate on same-sex marriage. In January 2012, he reiterated this promise following an imbroglio in which the federal Department of Justice implied that marriages of same-sex couples who do not reside in Canada may not be legal. Therefore, all indications are that social conservatism does not pose a threat to the rights of lesbians and gays in Canada, at least in the foreseeable future.

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A STUDY ON FINANCIAL STABILITY ANALYSIS OF

TOKUMMA AGRICULTURAL PRIMARY MULTIPURPOSE

COOPERATIVES HORO GUDURU WOLLEGA ZONE,

OROMIA REGIONAL STATE, ETHIOPIA

KIDANE MENGISTU

M.A., Cooperatives Accounting,

Ambo- Ethiopia

DR.A.TAMILARASU

Assistant Professor in Cooperatives

Accounting, Ambo University

ABSTRACT

Analyzing cooperatives financial statement is significant for members, government, other

non-governmental organizations and researchers to understand the strengths and

weaknesses in their operational system. The study unit and area is selected purposely,

based on the year of establishment and availability of financial statements for the five

years (2008-2012). To attain the objectives of the study the researcher was considered

five years audited report with regard quantitative data analysis by using the ratio analysis;

over a period of 2008-2012 years; for showing the problem areas and for improving the

financial stability by taking remedial action.

Keywords: Financial Statement, Financial Stability, Ratio Analysis



INTRODUCTION:

Cooperative is an autonomous association of persons united voluntarily to meet their economic, social and

cultural needs aspirations through a jointly-owned and democratically controlled enterprise (ICA, 1995).

Financial planning is important to maintaining a stable financial household. Good financial planning and

achieving financial stability will also help to prevent financial crisis. Financial stability analysis will interpret

and converts raw data from the financial statements into useful financial indicators. This research should be

conducts simulation on how the financial stability and strategies should be applied to influence the ultimate

financial stability of the cooperative.

STATEMENT OF THE PROBLEMS:

Finance is the blood of every business organization, needed to run their starting and operational activity. There

are number of constraints in all aspects of the agricultural cooperatives, include; difficult in mobilization of

finance, high rate of interest, very low possible for utilizing the funds, high transaction cost, poor financial

management are the problems of an agricultural cooperatives..

This is why the present study takes up on financial stability analysis focusing on their financial condition and

identifying those factors influencing financial efficiency, financial growth, financial strength, and operations of

Tokuma Agricultural Primary Multipurpose Cooperative.

SIGNIFICANCE OF THE STUDY:

The study should be the base for improvement of cooperative effectiveness and efficiency to investigate their

financial stability. It reveals to the management the strength and weakness of the financial position of the

cooperative society in order to take corrective action on the weak point. The study is find out the financial

position of the cooperative and the problems that hinders in achieving a good financial stability in detail and

provide them possible suggestions, conclusions and recommendations at the end of the study. The finding of the

study also helps as a source of information for further academic and application of research.

OBJECTIVES OF THE STUDY:

General Objective:

� The general objective of the study is to analysis the financial stability of Tokumma Agricultural Primary

Multipurpose Cooperative.

Specific Objectives

� To analyze the financial efficiency of TAPMPC.

� To study the strengths and weaknesses of financial position of TAPMPC.

� To recommend the possible solutions to overcome the financial stability problems of TAPMPC.

RESEARCH QUESTIONS:

1. Has the TAPMPC has good financial stability?

2. What are the strengths and weaknesses of financial position of TAPMPC?

3. How the cooperative can have the sound of financial position to run successfully?

SCOPE AND LIMITATIONS OF THE STUDY:

Scope of the study:

It is a case study in Tokumma Agricultural Primary Multipurpose Cooperative in Jima Ganati district, Horo

Guduru Wollega Zone,Oromia Regional state, Ethiopia. Analysis of the financial stability in past five years

(2008 to 2012) based up on examining the annual report, financial report, audit report, balance sheet, income

statement, funds flow and cash flow statement. The finding of the study does not generalize for the whole

activities of the cooperative in the district but focuses on the financial stability of the cooperative only.

Limitations of the study:

The main limitation of this study will be the constraints of financial support and the data will be the problem,

especially since the research concern of secondary data (financial statement) on which the organization



suspected to give full pledge sources. Beside that there is the difficulty to get necessary information in

administration and management area of the cooperative. Since there was no research conducted in the area

before, the researcher has faced the problem of experience and empirical studies. These all were problems or

limitations influenced the efficiencies and effectiveness of the researcher.

RESEARCH METHODOLOGY:

Sampling Technique:

Tokumma Agricultural Primary Multipurpose Cooperative has been selected as a study area purposively,

because it has started in 1977, availability of five years financial documents to evaluate financial efficiency,

financial growth, to study strength and weakness, and profitability and there is no similar research conducted to

investigate the financial stability analysis of cooperatives.

It provides different services such as input supply fertilizer and selected seed to increase members’ productivity

provide credit service to purchase members produce, gathering market information for their produce, supplying

farm tools and commodity goods in order to improve the life standard of the members and social community.

TABLE1.1 .STATUS OF AGRICULTURAL PRIMARY MULTIPURPOSE COOPERATIVES

S. No

Name of

Cooperatives

Year of

established

Members Capital in Birr

Male Female Total

1 Tokumma 1977 4,278 368 4,646 401,732.32

2 Gudane 2004 1,554 104 1,658 129,994.76

3 Ifa Bate 2004 1,241 109 1,350 264,554.33

4 Gembo 2005 610 57 667 181,909.60

5 Aba Jana 2006 187 6 193 8,761.30

6 Bikiltu Gidami 2008 231 21 252 6,565.00

7 Tulu Guracha 2008 91 2 93 5,638.43

8 Gudina 2008 103 12 115 17,282.47

9 Kalala 2009 196 22 218 12,866.49

10 Abdi Boru 2010 134 6 140 7,999.75

11 Mul’ata Boru 2011 81 3 84 7,375.00

Total 8,706 710 9,416 1,044,679.45

Source: Annual Report of Jima Ganati Cooperative Promotion office, 2012

SOURCES OF DATA:

The sources of data for the study would be mainly secondary sources. So, it has collected from board and

management minutes, audited financial reports basically from balance sheet, income statement, funds flow

statement and cash flow statement results from the cooperative and Jima Ganati cooperative promotion office,

published and unpublished document shows the past financial and operational performance for the past five

fiscal years (2008-2012) of cooperative.

METHOD OF DATA COLLECTION:

The data were collected quantitatively from secondary sources from TAPMPC for the past five consecutive

years (2008-2012). The data requires for analyzing the financial stability of the cooperative regarding to their

financial position, financial efficiency, profitability and sign of growth of cooperative.

METHOD OF DATA ANALYSIS:

A systematic approach involving quantitative methods used. The quantitative method that involve the

generation of data in quantitative form which is subjected to rigorous quantitative analysis in a formal and rigid

fashion to assess the financial stability of the cooperative. The data from audited balance sheet, income

statement, funds flow statement and cash flow statement of the cooperative were analyzed by using ratio

analysis, to assess the financial stability of cooperative.



TABLE 1.2 FINANCIAL RATIO ANALYSIS IN THE YEAR ENDED SEPTEMBER 30, 2008-2012

Group of

Ratios

Ratios

Years

2008 2009 2010 2011 2012 Standard

ratios

Liquidity

Ratios

Current Ratios 1.37 1.36 1.43 1.31 1.24 2:1

Quick ratios 1.21 1.12 1.37 1.22 1.06 1:1

Absolute liquid ratios 0.23 0.63 0.34 0.27 0.30 0.5:1

Cash ratios 0.25 0.63 0.34 0.27 0.30 1:1

Net working capital rations 707951.29 783,983.17 823,410.10 849,001.90 767,824.82 CA > CL

Solvency

Ratios

Debt-to-asset 92% 90% 89% 90% 91% 78%

Debt-to-Equity 11.49 9.22 7.70 9.21 9.92 1:1

Proprietary ratios 0.08 0.10 0.11 0.10 0.09 1:1

Current assets to equity ratio 10.90 9.02 7.63 9.20 9.71

Fixed assets to net worth ratios 1.48 1.06 0.95 0.89 1.09 0.75

Total assets to net worth ratios 12.49 10.22 8.70 10.21 10.92

Efficienc

y Ratios

Inventory turnover ratios 6.41 5.20 8.28 18.35 5.13 8 times

Debtor turnover ratio 0.61 0.71 1.03 0.70 0.68 5 times

Average debt collection period ratios 599.10 378.75 457.79 597.26 514.65 45 days

Creditors turnover ratios 1.01 1.20 1.40 1.76 1.03 5 times

Average accounts payable ratios 459.49 390.99 340.65 369.56 542.49 30 days

Working capital turnover ratios 3.10 3.13 3.59 4.53 3.29

Profitabil

ity Ratios

Gross profit margin ratios 8.80% 12.37% 11.00% 8.86% 14.13% 25%

Operating profit ratios (3.19%) 6.885 4.87% 4.37% 4.40%

Net profit margin ratios 3.92% 4.56% 5.65% 4.85% 3.86% 7%

Return on net asset ratios 2.89% 3.53% 5.15% 5.25% 2.33% 2 - 3%

Return on equity 36.05% 34.13% 46.47% 47.95% 24.25% 15- 20%

Source: Audited Report of TAPMPC from year 2008-2012



FINDINGS:

The current ratio standard is 2:1, but the cooperative has secured below the standard all the five years

Quick ratio of the cooperative is 1.21:1 in year 2008, 1.12:1in year 2009, 1.37 in year 2010, 1.22 in year 2011

and 1.06 in years 2012, which is better for the cooperative to meet its short-term obligation. The standard is 1:1.

Absolute liquid ratio of the cooperative was 0.63:1, in the year 2009 only, it is satisfactory to meet current

obligation. The standard ratio is 0.5:1.

The cash ratio of the cooperative was very poor with the standard ratio of 1:1

Net working capital ratio of the cooperative was increased from year to year in the past five consecutive years,

excluding the last year of the study period. In addition to it’s positively that implies as the cooperative can meet

short term obligations and the management has able to generate cash from operating activity, indicating the

strengths of management.

Debt-to-asset ratio was 92%, 90%, 89%, 90% and 91% from year 2008 to 2012 respectively. This illustrates the

cooperative asset is financed by creditors fund during the study period. The average is 78%.

The Proprietary ratio of the cooperative was very low under the study period. This indicates that the share

capital of the cooperative was financed by outside creditors.

Total current assets to equity ratio and total assets to equity ratio proportion shows high ratio in the study

period. So, the cooperative will face a problem of getting short term loans.

The fixed asset to net worth ratios are 1.48 in year 2008, 1.06 in year 2009, 0.95 in year 2010, 0.89 in year

2011, and 1.09 in year 2012. So, this shows that the ratio is excessive amount tied up in fixed assets to

generate little returns. The average is 0.75.

Debtor turnover ratio was 0.61 times in year 2008, 0.71 times in year 2009, 1.03 times in year 2010, 0.70 times

in year 2011 and 0.68 times in year 2012, which is good because it tells us that the cooperative was managed

debtors in better ways and money from debtors were collected soon. The standard is 5 times.

Creditors’ turnover Ratio of cooperative was 1.01 times in year 2008, 1.20 times in year 2009, 1.40 times in

year 2010, 1.76 times in year 2011 and 1.03 times in year 2012, which is less than the average ratio. This

indicates that the cooperative pay its account payable was well-built because it decreased the average payment

period. Since standard ratio is 5 times.

Working capital turnover ratio shows high ratio but this result did not show efficiency because working capital

was fewer amounts in proportion to net sales.

The study also reveals that gross profit margin ratio of the cooperative was 8.80%, 12.37%, 11.00%, 8.86% and

14.13%, which is below the standard, it indicates inefficiency of management due to unfavorable purchasing

price of COGS. The standard ratio is 25%.

The operating profit margin ratio was (3.19%), 6.88%, 4.87%, 4.37% and 4.40%. This shows that the

cooperative operating profit margin ratio was very poor; by this value of ratios it is difficult for the cooperative

to fulfill the needs of the concern.

Net profit margin ratio expresses the relationship between net profits after taxes to net sales. This ratio is widely

used as a measure of overall profitability. The net profit margin ratio of the cooperative was relatively in

declined trend from year 2010 to year 2011 and year 2012. In all the years values are under standard ratio.

The return on net asset ratio of the cooperative was better during the study period because in all years it is above

and between the standard ratios.

Return on equity ratio was 36.05 in year 2008, 34.13% in year 2009, which is in decreasing trend, but it

increased to 46.47% in year 2010, 47.95% in year 2011 and decreased to 24.25% in year 2012. So the

management of the cooperative utilizing the equity share capital efficiently and the return for the investor was

better during the study period. The average is 15-20%.

RECOMMENDATIONS:

In view of the findings and the conclusions of the study, the following recommendations are suggested to

analysis the financial stability of Tokuma Agricultural primary Multi-Purpose Cooperative.

To improve the liquidity position of the cooperative, the cooperative shall maintain adequate cash reserves from

operating activities,

In order to improve the financial leverage the management shall build equity capital by collecting shares from

existing and new membership; retain profits or converting cash dividends to shares. Members of the cooperative



should increase their own capital to finance fixed assets in order to reduce leverage ratio, this can be enhanced

by selling additional share capital and unproductive fixed assets.

Gross profit margin ratio is very low this shows it could not cover its fixed charges, and then the management

must follow pricing policy which says higher price for produce and lower price for inputs and commodities.

The management of the cooperative must pay its liabilities on time to minimize the financial charge paid to

creditors as interest for the amount borrowed.

The cooperative shall allocate part of its equity capital for current assets and working capital in order to run the

business operations smoothly, attract short term creditors and minimize risks of long term investment.

The cooperative should revise its credit policy to speed up collection of receivables and minimize associate d costs.

The management bodies of the cooperative should design and plan in paying dividend to its members in every year.

The management should give attention to decreasing administrative expenses and improve their working

efficiency to gain enough profit and save accumulated profit for capital growth.

Continuous and sustainable support and supervision by cooperative promotion office should be given to

strengthen service offered by the cooperative.

To progress the productivity of the cooperative, the cooperative has to improve qualified professional

employees in addition to existing personnel.

CONCLUSION:

From the above study, it is concluded that the values of liquidity ratios such as quick ratio and net working

capital ratio are above the standard. This indicates the cooperative financial position was good (or sound

enough) to meet its current obligations, But current ratio, absolute liquid ratio and cash ratio of the cooperative

are below the industry average, standard, that shows the financial position of the cooperative is not satisfactory

to meet its short-term obligations.

Finally, still there is a scope and hope for the betterment to maintain the optimum level financial stability in

future, if the cooperative operate the activity in efficient manner, try to maintain the optimum level of financial

stability in future, there is no doubt, it is clear Cristal that it will get the great success among the public and

other cooperatives also, the day is not for off.

REFERENCES:

1. James C. Van Horne and John M. Wachowicz.2001. Fundamentals of Financial Management. Eleventh

edition. prentice. Hall, Inc. U.S.A.

2. Duller Eberhard , 1974. Operational efficiency of Agricultural Cooperatives in Developing countries,

Food and Agricultural organization(FAO),Roma, Italy)

3. E.Eldon Reversal and Beverly L.Rotan,1997.Analysis of Financial Statements; local farm supply,

marketing cooperatives, Rural business cooperative service U.S department of Agriculture

4. Allen, W. and Wood, G.(2006), “Defining and achieving financial stability”, Journal of financial

stability,June,pp.152-172.

5. David S.Chesnick.(January 2000).Financial management and ratio analysis for cooperative

enterprises: Research report.175.Rural business cooperative service: U.S. department Agriculture

6. Financial statement analysis(2005). (compatibility mode) understanding and interpreting financial

statement analysis. 7. http://www.compac.org.ia/files/ Ethiopian cooperative movement by G.Veerakuman.pdf October

21,2010 http://www.compac.org.ica

8. James C. Van Horn ( 2002, Financial management policy, prentice Hall of India private limited, twelfth

edition.

9. M.E.Thukaram Rao(2003), Management Accounting , New Age International (p) limited publishers.

10. Fraser,M.L.and Ormiston A.(2003) Understanding financial statements. Prentice-Hall India private

limited. NewDelhi.sixth edition

----



EFFECT OF RATE OF DYEING ON THE FASTNESS

PROPERTIES OF INDIGO DYED COTTON FABRICS

JABAR. J. M.

Department of Industrial Chemistry,

Federal University of Technology,

Akure, Ondo State

ABSTRACT

Indigo dye is a natural dye that is insoluble in water, which needs to be converted to soluble form

in an alkali medium for it to be used for dyeing cotton fabrics with marked fastness properties.

Dyeing of cotton fabric by the exhaustion method depends on nature of fabric, nature of dye, rate

of dyeing and affinity of dye molecules to the fabric. Pretreatment of the grey fabric and

reduction of indigo dye to its leuco-form before dyeing improved the levelness and dye uptake of

the indigo dye on cotton fabric. The work reported in this study showed that the percentage dye

exhaustion increased as time of dyeing increased from 63.90 % to 71.8 % for the time of dyeing

of 15 min to 75 min and oxidation of the dye in fibre to water insoluble blue coloured cotton

fabric matrix as a result of exposure to atmospheric oxygen after dyeing, gave excellent fastness

properties to the dyed cotton fabric.

Keywords: Dye-uptake, Fabric matrix, Fastness, Leuco-form, Levelness, Pretreatment



INTRODUCTION:

Cotton fibre occupies the first position in terms of world production and sales level of cellulosic fibres because

of its unique hydrophilic property which gives comfortability to the consumers, especially during the summer

[1]. The cotton fibre can be spun into yarn (thread), which can be finally woven into fabric for 100 % cotton

fabric and it can equally be blended with other classes of fibres to enhance desired properties of such fabric [2].

The cotton fabric, like any other fabric needs to be pretreated [3-6] before dyeing or printing to promote its

dyeabilty and appealing look for market acceptability [7]. Traditional dyes employed in exhaustion dyeing of

fibres are water soluble and have strong intermolecular interactions with the fibres [8]. The intermolecular

interactions between dye molecules and surfaces of fibres serve as a driving force for the absorption of the dye

molecules by the fibres through diffusion [9].The key to indigo dyeing of cotton fabric through exhaustion

process is to make indigo dye soluble in water by reducing it to its leuco-form using sodium hydrosulphite

(Na2S2O4), followed by diffusion and absorption onto the fibre matrix. Diffusion of dye into cotton matrix

occurs under infinite dye bath condition, during the dyeing process, the dye concentration in the bath decreases

continuously while that at the fibre surface continuously increases during the adsorption process, until

equilibrium is achieved between the dye concentration in the cotton fabric and in the bath [1, 10].

Consequently, reduction of indigo dye to its water soluble leuco-form using Na2S2O4 makes its diffusion and

absorption into the fibre matrix easy [11, 12] and these are followed by fixation of dye to the fibre by oxidation

through exposure to atmospheric oxygen [9]. These steps enhance dyed fibre fastness properties due to strong

chemical bond formation between the dye molecules and fibre polymer matrix [9]. In this present study,

attention was focused on the effect of rate of dyeing on fastness properties of indigo dyed cotton fabric by

dyeing 5 g of pretreated cotton fabric with 100 ml dye liquor of 0.10 g dye concentration at 15 minutes interval.

EXPERIMENTAL:

Materials:

The grey fabric was purchased at Oke-odo market in Lagos, while the indigo dye was purchased from a dyestuff

marketer in Lagos, Nigeria. Chemicals and equipment used were of analytical grade.

METHODS:

Pretreatment of Cotton Fabric:

DESIZING: 40 g of grey cotton fabric was immersed in the 1000 mL solution containing 80 mg of dissolved

heat stable yeast, 2.5 mg of magnesium sulphate, 10 mg of soda ash, 40 mg of sodium chloride and 2 mL

wetting agent in a beaker, while proper absorption was ensured after immersion in a liquor ratio of 25:1, the

sample was then kept at the temperature of 80 oC for a reaction period of 60 minutes while stirring continually.

At the end of 60 minutes, the specimen was removed, rinsed in hot and cold distilled water and dried by hot

ironing [5, 6, and 13].

SCOURING: 40 g of desized cotton fabric was immersed in the 1000 mL solution containing 0.5 g of sodium

carbonate and 2 g of non-ionic detergent (Labolene) at 40-45 oC for 30 min, keeping the material to liquor ratio

at 25:1 . The scoured material was thoroughly washed with distilled water, dried at room temperature and

soaked in distilled water for 30 min [1].

BLEACHING: 40 g of desized, scoured fabric was immersed in 1000 mL solution containing 0.6 g

magnesium sulphate, 14 g sodium silicate, 25 cm3 of hydrogen peroxide, 2.0 cm

3 of wetting agent and 80 cm

3

of caustic soda (4 % NaOH ) solution in a beaker and stirred for 30 minutes. The fabric was then steamed at 80-

100 oC for 1 hour. After steaming, the specimen was rinsed with soap solution at 100

oC. It was then dried by

hot ironing after proper water rinsing [14].

MERCERIZATION: 40 g of the desized scoured, bleached fabric was immersed in 1000 mL solution

containing 5 cm3 of 40 % ethanol, 5 cm

3 wetting agent and 23 % caustic soda in a beaker for 45 sec of stirring.

The mercerization was completed after 45 sec and the sample was rinsed with distilled water and dried by hot

ironing [9].



DYEING: Reduction of an accurately weighed 1.00 g Indigo dye (Scheme 1) was done by making dye paste

with 20 mL of 96 % ethanol in 250 mL conical flask, followed by addition of a solution containing 1000 mg of

Na2S2O4, 100 mg of NaCl and NaOH, stirred and heated to 60 oC for total dissolution and reduction of the dye

to its leuco-form. The yellow coloured leuco dye was then made up to 1000 mL marked point in the flask with

distilled water [12]. The λmax of the dye liquor was determined to be 410 nm with the use of UV-Visible

Spectrophotometer (Pharmacia LKB Biochrome 4060). Serial dilution of the dye liquor was done and this λmax

was used to measure the absorbance of various concentrations (0, 0.2, 0.4, 0.6, 0.8, 1.0 g) of the dye to ascertain

compliance with Beer-Lambert’s law [15]. Subsequently, absorbance of the dye solutions used for dyeing the

fabrics and the residual dye baths (effluent) were measured to provide means of evaluating the amount of dye

absorbed by the fabrics [2]. 2% dyeing depth of the fabric was carried out using 100 ml of prepared dye solution

of liquor ratio 20:1 [14] in each of the 6 cups of the Roaches dyeing machine that was operated at 60 oC and 100

rpm. 5 g each of the 5 pretreated fabrics introduced, dyed and removed one after another for analysis every 15

min interval [17]. The dyed cotton fabrics were washed with cold distilled water and air dried for oxidation of

the dye (Scheme 1) [10, 18].

Na2S2O4/O2

NH

HN

O-Na+

+Na-O

INSOLUBLE VAT INDIGO SOLUBILISED LEUCO INDIGO

Scheme 1: Reduction of the Indigo dye to its leuco-form

FASTNESS TO WASHING: Each of the five 6 x 2 cm indigo dyed cotton fabrics (specimens) was placed

between 3 x 2 cm undyed cotton and wool fabric (one piece each) and sewed round the four sides to combine

the specimen and cloths in such a way that a portion of the specimen was uncovered. The sewed specimen was

introduced into the 600 mL of soap solution 5 g/L, keeping specimen at liquor ratio 1:50 and temperature 40 oC

for 30 min with continuous stirring. At the end of 30 min, the specimen was rinsed with distilled water,

squeezed and stitch removed along one short and two long sides to open the specimen out. The specimens were

then hung up to dry with 3 parts touching only at the line of stitching. The above was repeated for the washing

liquor containing no soap [1].

FASTNESS TO RUBBING: For dry fastness rubbing, each of the five 6 x 2 cm indigo dyed cotton fabrics

(specimens) was rubbed 10 times in 10 sec with dry white cloth fixed over a wooden figure on the crockmeter

apparatus, while the wet fastness rubbing was done by rubbing the specimens with wet white cloth fixed over

crockmeter [6].

FASTNESS TO LIGHT: Each of the five 6 x 2 cm indigo dyed cotton fabrics (specimens) and 8 standard blue-

dyed wool fabrics of variable fast (rated 1-8 on fast scale to produce a visually detectable change in colour)

were exposed to day light under standard conditions (including protection from rain, heat from fire etc) for 4 h

per day for 4 months from January to April 2009 [13].

FASTNESS TO HOT IRONING: For dry hot ironing, each of the five 6 x 2 cm indigo dyed cotton fabrics

(specimens) was positioned on a dry white cotton cloth and pressing iron at an appropriate temperature placed

on top for 15 sec [13].

FASTNESS TO PERSPIRATION: For fastness to alkali perspiration, each of the five 6 x 2 cm indigo dyed

cotton fabrics (specimens) was rubbed 10 times in 10 sec with dry white cloth fixed over a wooden figure on



the crockmeter apparatus, after it had been sprinkled with 5 % aqueous ammonia while fastness to acid

perspiration was done by sprink ling of the specimen with 5 % hydrochloric acid [6].

RESULTS AND DISCUSSION:

The calibration curve used for this study is shown in Figure 1. It was prepared at wavelength of maximum

absorption (λmax) 410 nm which was reproducible and linear over the calibration range. It agrees with the

findings of Ncibil et al., (2007) in adsorptive removal of textile reactive dye using posidonia oceanic (L) fibrous

biomass.

Figure 1: Calibration curve

Table 1 reports time – dependent behavior of the indigo dye exhaustion by the cotton fabric which showed that

dye-uptake and percentage dye exhaustion of 5 g cotton fabric increased from 12.78 mg/g and 63.90 % to 14.36

mg/g and 71.80 % for time of dyeing from 15 min to 75 min.

TABLE 1: INITIAL CONC. = 1000 MG, LIQUOR RATION =20:1 AND DYEING DEPTH = 2 %

Weight of

Fabric (g)

Time of

Dyeing(Min)

Absorbance

(A)

Conc. Of dye in

solution C (mg)

Qty Of dye

absorbed by

fabric C (mg)

DyeUptake

(mg/g)

(%) Dye

exhaustion

5.00 15.00 0.137 36.10 63.90 12.78 63.90

5.00 30.00 0.128 33.70 66.30 13.26 66.30

5.00 45.00 0.123 32.40 67.60 13.52 67.60

5.00 60.00 0.116 30.50 69.50 13.90 69.50

5.00 75.00 0.107 28.20 71.80 14.36 71.80

The undyed white cloth was assessed against the appropriate gray scale and the uncovered portion of the

specimen assessed for colour change [6, 13]. The fabrics dyed with indigo for 15 to 75 min subjected to fastness

to water washing gave no stain to undyed cloth and its

uncovered portion showed no visual colour change, hence, assessed at scale 5, while the fabrics dyed with

indigo for 45 to 75 min subjected to fastness to soap washing also gave no stain to undyed cloth and its

uncovered portion equally showed no visual colour change, hence, assessed at scale 5 but those dyed between

15 to 30 min gave very little stain to the undyed white cloth and assessed at scale 4 (Table 2).

In fastness to rubbing, the degree of staining of the undyed white cloth (both dry and wet) was rated 5 against

the standard grey scale in all (Table 2). For light fastness, it was observed that at the end of 4 months exposure

of the specimen and 8 standard blue-dyed wool fabrics of variable fast to light, the specimen were visually

compared with the standard wool fabrics and dyed for 15 to 30 min had their hue matched with that of the wool

standard of fastness rating 7 while those dyed for 45 to 75 min had their hue matched with that of the wool

standard of fastness rating 8, then the indigo dyed cotton fabrics light fastness was assessed at 7-8 (Table 2).

Fastness to hot ironing showed that degree of staining of the white cotton cloth was thereafter rated 5 against

the standard grey scale in all (Table 2).

It was observed in fastness to perspiration that degree of staining of the white cloth rubbed on

specimen sprinkled with 5 % aqueous ammonia was thereafter rated 3 for fabrics dyed with indigo dye between

15 to 30 min, 4 between 45 to 60 min and 5 at 75 min, while that of the white cloth rubbed on specimen

sprinkled with 5 % hydrochloric acid was rated 4 for fabric dyed between 15 to

30 min and those dyed between 45 to 75 min were rated 5 as against the standard grey scale in all (Table 2).

0

1

0 500 1000 1500Ab

s

Conc. (mg/ L)



TABLE 2: FASTNESS PROPERTIES FOR INDIGO DYED COTTON

Time of

Dyeing (min)

Washing Rubbing Light

Hot

ironing

Perspiration

alkaline Acidic

water soap dry wet 15.00 5 4 5 5 8 5 3 4

30.00 5 4 5 5 8 5 3 4

45.00 5 5 5 5 8 5 4 5

60.00 5 5 5 5 8 5 4 5

75.00 5 5 5 5 8 5 5 5

Key: 1-Poor; 2-Below average; 3-Average; 4-Good; 5-Excellent and 8-Excellent

CONCLUSION:

From the results obtained, it can be inferred that the percentage dye exhaustion of the indigo dye applied to the

cotton fabric increases with dyeing time. This demonstrates the importance of dyeing time generally.

Pretreatment of the grey fabric and reduction of indigo dye to its leuco-form before dyeing improved the

levelness and dye-uptake of the indigo dye on cotton fabric and its oxidation to insoluble colourant on cotton

fabric matrix as a result of exposure to atmospheric oxygen after dyeing, gave excellent fastness properties to

the dyed cotton fabric.

REFERENCES:

1. Rakhi. S. and Padma. S.V. (2007), “Dyeing cotton, wool and silk with Hibiscus Mutabilis”, Dye and

Pigment. Vol. 74, pp. 464 – 469.

2. Adetuyi. A. O., Jabar. J. M., Obaseki, A. O. and Popoola, A. V. (2009), “Adsorption of C. I. Vat Blue 1

(Indigo) from stimulated dyeing effluent on some prepared activated bio-solids”, Asian Dyers, 6, pp. 42-49.

3. Banerjee. S.K., Day. A., Bag. S.C., Sengupta. P. and Deb. S.N.L. (1985), “Textile chemical finishing of

jute yarn and fabric”. Colourage, Vol. 32(3), pp. 23-28.

4. Lewin. M. and Pearce. E.M. (1985) “Hand book of fibre science and technology”, Vol. IV, Marcel

Dekker, Inc. New York.

5. Mahapatra. N.N. (2010), “Use of enzymes in textile processing”, Asian Dyers, 7, pp. 53-56.

6. Sankar. R. M. and Sunindita. R. (2009), “Dyeing of polyester with natural dyes”. Asian Dyer, 6, pp. 23 - 28.

7. Lipika. C., Prabir. K. and Supriyo. C. (2010), “An insight to natural dyes”, Asian Dyers, 7, 30- 34.

8. Kamel. M. M., El-Shishtaway. R. M., Yusuff. B. M. and Mashaly. H. (2005),” Dyeing of wool with lac as

natural dye”, Dye and pigment, Vol. 65, 103-110.

9. Burkinshaw. S.M. and Gotsopoulos. A. (1999), “Pretreatment of cotton to enhance its dyeability”, Dye

and Pigment, 2, pp. 197-195.

10. Dapeng. L. and Gang. S. (2005), “Colouration of textile with self-dispersible carbon black nanoparticle”,

Dye and pigment, Vol. 72, pp. 144-149.

11. Marcinci. A., Ujheliyova. A., Macincinova. T. (2001), Macromolecular Symposia, Vol. 176, 65-72.

12. Peters. R.H. (1975), “Physical chemistry of dyeing: In Textile Chemistry”, Vol. III. Elsevier Scientific

Publishing Company.

13. Prof. A.V. Popoola. (1989) “Fastness properties of textile and dyes: In Fundermental of Nigeria Textile

Handicraft”, FUTA.

14. Thomas. B., Amalid. M. and Rita. M. ( 2007), “Natural dyes for textile dyeing: A comparison of methods

to assess the quality of Canadian golden rod plant material”, Dye and Pigment, Vol. 75. Pp. 287 - 293.

15. Nasia. F. A. and El-Mohamedy. R. S. R. (2007), “Dyeing of wool with natural anthraquinone dye from

Fusarium oxysporum”, Dye and pigment, Vol. 75, 550-555.

16. Anna. U., Eva. B., Janka. O. and Radovan. T. (2007), “Kinetics of dyeing process of blend

polypropylene/polyester fibres with disperse dye”, Dye and Pigment, Vol. 72, pp. 212-216.

17. Mitsuhiko. H. (1994), “New analytical method of dye aggregation using PCA method”, Dye and pigment,

Vol. 27(2), pp. 123-132.

18. Ncibi. M. C., Mahjoub. B. and Seffen. M. (2007), “Adsorptive removal of textile reactive dye using

posidonia oceanic (L) fibrous biomass”, Int J. Environ. Sci. Tech., 4, 433-440.

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OCCUPATIONAL STRESS AND COPING IN MAHARASHTRA

POLICE PERSONNEL: A COMPARATIVE STUDY

BAL RAKSHASE,

Centre for Health Policy, Planning and Management

School of Health System Studies

Tata institute of Social Sciences, Mumbai (India)

ABSTRACT

The ranking of the crime rate in Maharashtra is changing at ascending direction and this many

internal as well as external reasons. Majority of the analysts are interpreting these causes in life

style, odd working hours, changing pattern of the crime etc but all these analysts are agreed on

one cause that is the level of stress among police personnel. In present investigation, efforts have

been made to study the occupational stress and coping in Maharashtra Police personnel. The level

of occupational stress and coping is assessed and compared among officers and constables

knowing the level of authority, autonomy and other work related factors. For assessing the level

of occupational stress and coping style of Maharashtra police personnel, researcher used

Occupational Stress Inventory- Revised by Osipow (1998. The sample was divided on the basis

of their job status and tenure, i.e. officers and constables and above sixteen years of service and

below fifteen years of service. It is found that there was no significant difference on the score of

occupational stress between officers and constables. There was significant difference on the score

of coping style between officers and constables. Further it was found that there was significant

difference on the score of occupational stress between those who are below fifteen years of

service and above sixteen years of service. Finally investigator concluded that the job status and

tenure of service are important factors which affect the level of occupational stress and coping

style among police personnel.

Keywords: Occupational Stress; Coping; Police Personnel



1.0 INTRODUCTION:

The police personnel, in India, are facing number of occupational problems. Maharashtra police force is no

exception to this. Maharashtra police have to perform risky duties. At the same time the hours of work, as

compared to other types of labour, are more in number. They have to work with limited man power resources. The

organizational hierarchy is such that they have to work under tension. In such situation policemen have to

maintain law and order in the state. All these things lead to occupational stress. This has resulted into number of

problems such as depression, somatic complaints and mental disturbances and in some extreme cases suicide also.

In view of the above situation, it is felt that the occupational stress of the police officers in Maharashtra must be

studied. What resources can be used to solve the problems of police officers and their personal strain level is an

essential part of the study. The concept of stress, coping and selected reviews are given below.

1.1 Stress:

Stress is the psychological factor that is harmful to physical and psychological health and dangerous to quality

life concept. In an organization this term operates in different manner and moreover it has different sources.

SOURCES OF STRESS:

Basically there are three important sectors of life in which stress originates, i.e. i) job and the organization, ii)

social sector, and iii) intra-psychic sector. The job and organizational sector refers to the work environment.

The social sector refers to the social and cultural context of one’s life. The intra-psychic sector encompasses

those things which are intimate and personal. The present study has focus only on the job and the

organizational sector. Human behaviour in the organization is influenced by number of factors, such as

physical, social and psychological. It is one of the important factors that what type of relationship the individual

has with the organization. Every individual in the organization has assigned the role. Through the role an

individual interact and get interacted with the system. According to Pestonjee (1999) organization is the system

of the roles. Pareek (1993) defined the role as any position a person holds in the system (organization) as

defined by the expectations of various significant persons, including himself/herself have from the position.

Occupational stress can be defined as the physiological and emotional responses that occur when workers

perceive an imbalance between their work demands and their capability and /or resources to meet these

demands. Psychological pressure in the work place derives from cultural, organizational and management

environments as well as the work tasks that staff is asked to perform.

As pressure build up, a person is said to be under stress when he or she runs out of resources to manage them. If

the amount of pressure become to great then individuals may begin to show physical or psychological

symptoms that cannot only impede their work capabilities but also result in physical and / or mental illness

(Brown, Cooper, and Kirkcaldy, 1996).

Stress reactions vary by characteristics of the personality, social support structure, life experiences, years of

service, level of education, use of coping strategies, the intensity of the stressful situation and any unique

features of the organization. Many of time police stress considered as an employee problem, not an

organizational problem.

1.2 Coping:

Coping refers to attempts to meet environmental demands in order to prevent negative consequences (Lazarus

& Folkman, 1984). Coping strategies can be grouped into two main types. Problem focused coping and emotion

focused coping. The first main approach includes any strategy to deal directly with the stressor through overt

action or through realistic problem solving mental activities. In these strategies, our focus is on the problem to

be dealt with and on the agent that has induced stress. We acknowledge the ‘call to action’, we appraise the

situation and our resources for dealing with it, and we undertake a response that is appropriate for removing or

lessening the threat. In second approach, we do not look for ways of changing the stressful situation; instead we

try to change our feelings and thoughts about it. This strategy is called emotion regulation (Zimbardo, 1988). It

is a remedial, rather than a problem-solving strategy, because it is aimed at relieving the emotional impact of

stress to make us feel better, even though the threatening or harmful stressor is not changed. Relying on this

approach, people may take alcohol, cigarettes, tobacco or tranquilizers; these may work for a while. Such

approach towards stress has its drawbacks. In a study conducted by Coyne et al., (1981) on depressed and non-



depressed middle-aged people over a one period, it was found that those who were depressed were using

appraisals and coping patterns that created problems and perpetuated their depression. They were as likely as

non-depressed to feel that something could be done about the situations they faced, and even to focus on

problem solutions, but they diverged in their tendency to accentuate the negative. They spent more time seeking

emotional support for their feelings of distress.

2.0 OPERATION DEFINITION OF THE CONCEPTS USED IN PRESENT STUDY:

Occupational stress:

Occupational stress can be defined as the physiological and emotional responses that occur when police officers

perceive an imbalance between their job demands and their capability.

According to Osipow and Spokane (1998), the following important factors are involved in occupational stress:

1. Role Overload

2. Role Insufficiency

3. Role Ambiguity

4. Role Boundary

5. Responsibility

6. Physical Environment

COPING:

Coping refers to attempts to meet environmental demands in order to prevent negative consequences. Coping

strategies can be grouped into two main types. i.e. Problem focused coping and emotion focused coping. The

first main approach includes any strategy to deal directly with the stressor through overt action or through

realistic problem solving mental activities. In second approach, we do not look for ways of changing the

stressful situation; instead we try to change our feelings and thoughts about it. This strategy is called emotion

regulation (Zimbardo, 1988). According to Osipow and Spokane (1998), the following personal coping

resources are used.

Recreation (RE): In recreation occupants take the advantage of the recreational/leisure time coming to them and engage in

varieties of activities that they find relaxing and satisfying.

Self Care (SC):

Regular exercise, sleeps eight hours per day, careful about diet, practice relaxation techniques, and avoid

harmful substances.

Social Support (SS):

Social support refers to instrumental assistance and emotional supportiveness as perceived by the police officers

(Ganster, Pagon, & Duffy, 1996).These resources can include material aid, socio-emotional support and

informational aid.

Rational / Cognitive Coping (RC): A systematic approach to solving problems, thinking through the consequences of their choices, and are able to

identify important elements of problems encountered.

Tenure: police personnel having less than sixteen years and more than sixteen years were considered in this variable.

The purpose behind selecting tenure of sixteen years is that police personnel get settled during this period.

Position: Being police officers received more power than police constables. Hence, position is also considered

as a one of the determining variable in this paper.

3.0 METHOD:

3.1 Research Design:

In present investigation 2X2 research design is being used. Job status and length of service has been taken into

consideration. In job status is police constable and police officers are considered whereas in length of service

less than 16 years and more than 16 years are taken into consideration. The structure of design is given below

the table number 01.



TABLE 1 STRUCTURE OF THE RESEARCH DESIGN

Job Position

Length

of Service

Police Constable

Less than 16 years service

(n=100)

Police Officer

Less than 16 years service

(n=100)

Police Constable

More than 16 years service

(n=100)

Police Officer

More than 16 years service

(n=100)

3.1 Hypothesis:

1. Police constable experiences more stress than police officers.

2. Police personnel having more than sixteen years of experience experiences less stress as compare to the

police personnel having less than sixteen years of experience.

3.2 Sample:

The present study is conducted on total 400 police employees. For the present study only male sample was

considered. Out of 400 police employees 200 were constables and 200 were officers from the area of Nashik

range which consists of five districts, viz. Nashik, Dhule, Jalgaon, Nandurbar and Ahemednagar. Thus, the

design is as follows.

3.3 Tools:

To assess the extent of occupational stress among Maharashtra police personnel, the Occupational Stress

Inventory-Revised (OSI-R) standardized by Osipow and Spokane (1998), has been used. The reliability of the

test is .88, and validity is .63.

3.4 Procedure of data collection:

Police department has different functional hierarchy due to it functions and security is concerned. The authority

of the Nashik division i.e. IGP (Spl.) has been met personally and discussed the present research topic with him.

After seeking his permission different police stations has been visited by the investigator for the purpose of data

collection. The officers and constables were requested to respond to this questionnaire and after their consent

questionnaires has been filled by them followed by the rapport.

3.5 Nature of the Data:

Looking at the word limits in present investigation total score of occupational stress and coping has been

discussed. Sub-scales were not discussed in detailed.

4.0 DATA ANALYSIS AND RESULTS:

Descriptive Statistics: In the present work the variable occupational stress, coping resources and mental health

are covered. The scoring procedure of these variables was carried by following the directions given in the test

manuals. The occupational stress inventory has the six aspects of occupational stress, but in the present study

they were not considered separately. The score of the occupational stress was calculated by adding scores of six

subscale of the Occupational Stress Inventory-Revised by Osipow (1998), namely, 1) Role Overload 2) Role

Insufficiency 3) Role Ambiguity 4) Role Boundary 5) Responsibility and 6) Physical Environment.

The coping resources have four domains, viz. 1) Recreation 2) Self care 3) social support and 4)

Rational/Cognitive coping. The score of these four domains was calculated separately.

4.1. Stress among Police Personnel:

Taking in consideration the occupational stress as a Dependant variable among personnel of different position

and having length of services following table is given herewith.



TABLE 2 TABLE SHOWS OCCUPATIONAL STRESS AMONG POLICE PERSONNEL

Position

Length of Service Officers Constables

Above Sixteen Years 201.70 (M); 4.324 (SD)

100(N)

204.90 (M); 3.279 (SD)

100(N)

Below Sixteen Years 202.470 (M); 4.257 (SD)

100(N)

200.61 (M); 3.287 (SD)

100(N)

Dependant variable: Occupational Stress

The above table provides the mean scores, standard deviations and N for each subgroup of the two independent

variables and here occupational stress is treated as dependent variable. The table shows Police officers those

have experience of above sixteen years have 201.70 mean and 4.324 standard deviation whereas officers have

below sixteen years experience have 202.470 mean and 4.257 standard deviation score. However, Police

constables those have experience of above sixteen years have 204.90 mean and 3.279 standard deviation;

whereas, officers have below sixteen years experience have 200.61mean and 3.287standard deviation score. It

means police constables have above sixteen years of experience have more occupational stress whereas police

constables have below sixteen years experience have lowest occupational experience.

For the purpose of estimating significance of differences on stress among the constables and officers and with the

length of service ANOVA test is administered on the data and the results are given in below the table number 03. .

TABLE3. RESULTS OF ANOVA TEST ON STRESS LEVEL

Source Type III Sum of Squares Df Mean Square F Sig. Partial Eta Squared

POSITION 44.890 1 44.890 3.075 .080 .008

TENURE 309.760 1 309.760 21.220 .000 .051

TENURE *

POSITION 640.090 1 640.090 43.849 .000 .100

In the above table the results of the Two-way ANOVA showed that there was significant difference (F (1, 396 =

21.22, p < .01) between the police personnel of above sixteen years of service and below fifteen years of service

on occupational stress. The eta square, the measure of effect size, associated with the main effect of tenure is

.051, indicates large effect and explains thereby 5.1 variance in the dependent variable stress.

It is also interpreted from the above table that the main effect of Variable position (F (1, 396) = 3.075, p < .05)

is not significant. This means that there is no significant difference in scores of stress according to position

(officers and constables) of police personnel. The eta square, the measure of effect size, associated with the

main effect of position is .008, indicates small effect and meaning thereby that 0.8 % of the variance is

explained in dependent variable stress.

4.2 Coping among Police Personnel:

Taking into consideration the coping as a dependent variable mean score and standard deviation is given below

the table number 04.

TABLE 4 SHOWS COPING AMONG POLICE PERSONNEL

Position

Length of Service Officers Constables

Above Sixteen Years 134.82 (M); 2.797 (SD)

100(N)

130.82 (M); 3.993 (SD)

100(N)

Below Sixteen Years 138.650 (M); 3.508 (SD)

100(N)

134.180 (M); 3.465 (SD)

100(N)

Dependant variable: Occupational Stress

The above table provides the mean scores, standard deviations and N for each subgroup of the two independent

variables and here coping is treated as dependent variable. The above table shows among police officers having more

than sixteen years of service score 134.82 mean and 2.797 as standard deviation score whereas officers having less



than sixteen years of service score 138.650 means and 3.508 as a standard deviation score. However, in case of

constables those have above sixteen years of service score 130.82 mean and 3.993 standard deviation whereas

constable those have below sixteen years of service score 134.650 mean and 3.465 as a standard deviation.

Whether these scores are differing significantly or not is understood by using ANOVA and results are given

below the table number 05.

TABLE 5SHOWS RESULTS ANOVA ON COPING (a R Squared = .394 (Adjusted R Squared = .389)

Source

Type III Sum

of Squares Df Mean Square F Sig.

Partial Eta

Squared

Tenure 1292.403 1 1292.40 107.49 .000 .213

Position 1793.523 1 1793.52 149.17 .000 .274

tenure * position 5.523 1 5.52 .45 .498 .001

Error 4761.030 396 12.02

Total 7256601.000 400

Corrected Total 7852.478 399

In the above table the results of the Two-way ANOVA showed that there was significant difference (F (1, 396 =

107.49, p < .01) between the police personnel of above sixteen years of service and below fifteen years of

service on coping. The eta square, the measure of effect size, associated with the main effect of tenure is .213,

indicates large effect and explains thereby 21.30 variance in the dependent variable coping.

It is interpreted from the above table that the main effect of Variable position (F (1, 396) = 149.17, p < .05) is

not significant. This means that there is no significant difference in scores of coping according to position

(officers and constables) of police personnel. The eta square, the measure of effect size, associated with the

main effect of position is .274, indicates small effect and meaning thereby that 27.4 % of the variance is

explained in dependent variable coping.

5.0 CONCLUSION:

1. The level of stress do not differs significantly among constables and officers. It means position do not

work as a determinant of level of stress.

2. The level of stress differs significantly among personnel having above sixteen years and below sixteen

years of service. It means the tenure of service is the significant determinant of stress.

3. The level of coping differs significantly among constables and officers. It means position is the

significant determinant of using coping mechanism.

4. The level of cope differs significantly among personnel having above sixteen years and below sixteen

years of service. It means the tenure of service is the significant determinant of use of coping mechanism.

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MARKETING MIX OF LIFE INSURANCE COMPANIES

IN THRISSUR DISTRICT – A STUDY

DR.E.MUTHUKUMAR,

Associate Professor in MBA, Nehru

College of Management, T.M. Palayam,

Coimbatore Tamilnadu, India.

DR.G.ALEX RAJESH,

Professor in MBA, Nehru College of

Management, T.M. Palayam,

Coimbatore Tamilnadu, India.

M.SATHISKUMAR,

Assistant professor in MBA,

Nehru Institute of Information Technology and Management,

T.M. Palayam, Coimbatore Tamilnadu, India

ABSTRACT

Life insurance plays a significant role, in the individual lives as well as the society. For the

individuals, life insurance is a life saver since it offers protection and extends a hand of protection

to those who feel depressed and are left without any support due to the sudden, unexpected

demise of the breadwinner of the family. It has an element of saving for investment in future. It

offers a safe and secured future, by providing financial assistance at times of need that is for

meeting the educational expenses of the children or marriage and so on. It provides loan facilities

which improve the credit worthiness of the policy holder. A life insurance policy may be used to

avail loan facility, directly from the life insurance company or can be given as a collateral

security for obtaining financial assistance from banks and other financial institutions. In case of

death, life insurance provides security for the family and provides guaranteed payment when

there is reduction in the earning power, due to old age, sickness, accident and so on. Life

insurance is a means of savings and the relief given by the government towards the savings,

promotes the habit of thrift and savings among the people.

Keywords: Life Insurance, Safe and Secured Future, Financial Assistance, Savings



INTRODUCTION:

The most important aspect of human life is its uncertainty. In the modern industrialized era, human life and

property are inevitably exposed to different kinds and varying degrees of risks and uncertainties. Human beings,

to protect themselves and their property from total disaster, resort intelligently to protection coverage extended

by the insurance companies which act as a trustee to the amount collected through premiums and provide

certainty in the place of uncertainty. A very prominent step taken by human beings to mitigate the eventualities

of life is investment in insurance companies which act as protectors of future ambitions and aspirations of the

people. Insurance is a co-operative device which safeguards financially both longevity of human life or

premature mishaps when man, out of genuine concern for his dependants, insures his life taking into account

the various unforeseeable risk factors that are prevalent everywhere. The maturity amount takes care of not only

the dependants of the insured, but also of self, when he is neglected or forsaken by his family members. Middle

income groups certainly resort to insurance companies for their future financial needs and commitments. The

salaried group depends upon insurance for saving for the future as well as for tax purposes.

The proper channelizing of the insurance companies funds have benefited the community at large. The

utilization of people’s money invested in life insurance for planned economic development has helped the

country march forward. The amount amassed through premium is invested in socially desirable and societal-

oriented projects like housing, electricity, water drainage systems and infrastructure development. Capital is

provided for capital accumulation, increase in production and job opportunities. The much-needed capital

requirements of business and commerce are provided by means of these investments. All these aspects highlight

the importance of insurance companies in the modern economic scenario and they are an integral part of our

investment portfolio, not only for the salaried class but also for anyone who can pay a minimum premium in his

own capacity for his future security. Even the families from the marginalized class now invest in life insurance

policies to protect themselves from unwanted mental stress and financial risks. Life insurance facilitates

disciplined savings, protects against untimely demise, guarantees asset protection, steady growth of investment

and planning for retirement. Life insurance is civilization’s partial solution to the problems caused by death.

The insurance companies have come to the doorstep of every family today, especially after the financial sector

reforms. With the advent of private sector players in the field, there is great competition in the mode of operation and

each company employs its own unique marketing strategy for the best results. As indicated in the report, the

insurance companies have started focusing on the rural markets, as competition has become acute in the urban

markets. There is a felt need to concentrate on the security as well as the health aspect of the policy holders.

Moreover, the insurance companies have been concentrating on all sections of society including the marginalized and

the destitute irrespective of their status. The captivating captions of advertisements that promise the fulfillment of

various dream visions from rags to riches, illustrate the companies varied marketing strategies.

The elements of marketing strategy adopted by the insurance companies vary considerably and it is worth

examining the marketing mix adopted by the insurance companies both in the private and public sectors to

analyze and gauge their effectiveness and suggest further modifications needed, for the best results. In addition

to product, price, physical distribution and promotion, there are a few more elements such as customer-care and

location advantages that comprise the marketing mix. These factors constitute the agents of success for these

companies and hence the present study.

MARKETING MIX OF INSURANCE SERVICES:

Marketing mix is an important tool used by the marketing manager in formulating the marketing planning to

suit the requirements of the customers. It is a tool used to ascertain the needs, tastes and preferences of the

customers. The strategies of marketing mix require some modifications, when applied to service sector

undertakings. Due to the special features of the services namely intangibility, inseparability, perish ability and

heterogeneity. Customer service lies at the heart of service industries and therefore marketing has become far

more customer oriented than ever before. The marketing mix of the services industries comprises of nine P’s

namely Product, Price, Promotion, and Physical distribution, People, Process, Physical Evidence, Packaging

and Public Relations.

Services can be classified on several bases such as nature of service act, type of relationship between the service

providers, scope of customization and so on. Considering the nature of services, insurance is one of the essential

services categorized under financial services. Along with financial services real estates and business services

insurance contributes nine point seven per cent to the GDP of our country.



INDIAN SCENARIO:

Life Insurance in its existing form came to India from the United Kingdom with the establishment of a British

firm, Oriental Life Insurance Company in Calcutta in 1818 followed by Bombay Life Assurance Company in

1823, the Madras Equitable Life Insurance Society in 1829 and Oriental Government Society Life Assurance

Company in 1871. On January 19, 1956, The Management of the Insurance Business of 245 Indian and foreign

insurers and provident societies, then operating in India, was taken over by the Central Government and then

nationalized on September 1, 1956. The Life Insurance Corporation (LIC) was formed in September 1956 with

a capital contribution rupees five crores from the government. The mission given to Life Insurance Corporation

at the time of nationalization can be summarized as follows:

Providing protection of insurance to people in every nook and corner of the country; mobilizing savings for the

development of the country and responding to customer’s sensitivity.

STATEMENT OF THE PROBLEM:

Life insurance is universally acknowledged to be an institution which eliminates risk substituting certainty for

uncertainty and comes as timely aid to the family in the unfortunate event of the death of the bread winner. Life

insurance companies both private and public adopt different marketing practices to meet the needs of their targeted

market. Customized products, pricing, multi-channel distribution system such as direct selling, banc assurance,

corporate agency models serve as strategic tools for penetrating into the market. Advertisement through media and

technologies help in communicating the market information to the customers as well as the company. Providing

quality service through customer relationship management practices has become the need of the hour.

Life insurance is a device that provides safety, security, risk cover and adequate returns. The material

consequences of accidents, illness and death, the lack of income after retirement that cannot be remedied, could

be financially compensated by insurance. The important elements of the marketing mix as employed by these

companies include kinds of policies(product) such as education policy, and pension policy, price (premium),

promotion i.e., various advertising techniques, the most powerful being through media and through agents and

policy holders, mode of distribution (agents), customer-care services and physical ambience of the institutions.

The role played by each one of these factors constitutes the crux of the study. The researcher wanted to look

into the Unique Selling Proposition of each company that is vital for the success in their chosen fields, by both

public and private sector companies. The study is made to understand the policy holders’ view as regards the

marketing efforts implemented by the companies.


The present research has been undertaken with the general objective of analyzing the marketing mix of the

select insurance companies. The specific objectives are as follows:

1. To analyze the personnel and demographic and rational profile of the respondents;

2. To study the attributes of insurance products and pricing of life insurance policies;

3. To study the nature and types of promotional activities undertaken by the life insurance companies;

4. To examine the physical distribution practices undertaken by the life insurance companies;

5. To study the practices relating to the processing of life insurance products and

6. To describe the physical evidence practices of life insurance products.

METHODOLOGY:

Any study, to be authentic has to be the representative of the universe and depends upon the data collected and

analyzed. The characteristics of data collected and the validity of the analysis depend mainly on the methods

and the methodology adopted in the study. Moreover the study has been carried out in Thrissur district. The

researcher consulted the officials of the three companies who assisted in the selection of policies for the purpose

of the study. The pilot study also endorsed the same result.

PILOT STUDY:

A pilot study was conducted with the help of a draft questionnaire. The researcher randomly selected one

hundred respondents from various locations. The questionnaire comprised 35 questions under the seven



elements of marketing mix namely, product, pricing, promotion, physical distribution, people, process and

physical evidence using Five Point Likert scale. Eight questions high-lighted the rational background of the

respondents.

SAMPLING FRAMEWORK:

The population for the study consisted of the policy holders of Life Insurance Corporation, ICICI Prudential

Life Insurance Company and BAJAJ Allianz Life Insurance Company. The researcher adopted Purposive

Sampling method to choose the policy holders of the three chosen companies.

COLLECTION OF DATA:

Primary Data: Primary data have been collected through a structured questionnaire. Simple, specific and direct questions to be

marked under a five point scale were included in the questionnaire to solicit information from the policy

holders. Questions were designed in such a way to maintain a high degree of objectivity and consistency. The

authenticity of the questionnaire was verified through informal interviews. The questionnaire comprised of

three parts. The first part of the questionnaire contained eleven questions relating to demographic factors of the

policy holders. The second part contained eight questions relating to rational factors and the third part contained

35 questions relating to the five factors chosen for study.

Secondary Data: Secondary data have been collected from various books, journals, magazines, IRDA Annual Reports and from

company records.

REVIEW OF LITERATURE:

Review gives a comprehensive view of the various aspects and the varied critical opinion of authors and

research scholars in recent times. This review helps focus on the advantages, disadvantages and the areas and

scope for improvement. It also gives statistical factual data based on surveys and reports. This review is of great

help to the researcher to know the pros and cons and look at the problem from a new and different perspective.

Mishra, K.C., and Sumitra Mishra (2000), have analyzed the position of insurance in USA, Japan, U.K, and

Germany, which are considered to be the largest country level markets in the world. They have recalled the fact

that, insurance service is one of the most important constituents of the economic development of the nations.

They have emphasized the fact that, insurance plays an active role in promoting stability, facilitating trade and

commerce, mobilizing savings, managing financial risks more effectively, encouraging mitigation of loss and

allocating capital efficiently.

Shesha Ayyar (2000), opined that, it would take seven to 10 years for the private insurers to break-even, due to

the fact that their operating cost which is high in the initial years would affect their profits.

Stuart Purdy (2003), has stated that the privatization process of the insurance industry has resulted in providing new

opportunities in terms of employment, savings, new channels of insurance distribution and wider coverage to rural areas

as well as the economically deprived sections of the society. The presence of the strong and unbiased regulator has

contributed to the success of the industry. He has expressed hope that, the insurance industry would continue to grow by

taking pensions, savings and insurance products to the door steps of more and more customers.

Tarun Kapoor (2003), identifies the major challenges ahead of the insurance industry to be: product

innovations, distribution network, customer service and education .He has suggested that, in order to be

successful, the insurance companies have to be innovative, select the right type of distribution channel, offer

continuous training, educate the customer, provide quality service to customers and follow prudent investment

pattern to increase the customer base.

Rajesh .C. Jampala and Polavarapu Adilakshmi (2006), have identified the major challenges, for Indian Life

Insurance Companies, to be stringent solvency norms, expense over runs, new business strain, low agent

productivity, high attrition level of agents, low average premiums and high competition in the market place.

They are of the opinion that, there is a great potential for insurance business as the penetration level of

insurance to Gross Domestic Product is very low, and selection of the right quality of business would ensure

success for the private players.



DISCUSSIONS:

The study on the marketing mix of select life insurance companies is based on the response of people to the

questionnaire administered. This is the data base used to explain and prove the hypotheses. The analysis of the

data collected is based on some important factors that influence / determine the decision making regarding

purchase of life insurance policy. These deciding factors are highlighted through the first part of the

questionnaire concerning the personal and socio-economic profile of the respondents.

TABLE – 1 CRITERIA FOR THE SELECTION OF THE LIFE INSURANCE COMPANY

Factor Frequency Percent

Brand image 471 60.9

Prompt Service 41 5.30

Reputation 68 8.8

Security 193 25.0

Total 773 100.00

Source: Primary data

Table -1 indicates the reasons for choosing the life insurance company. Out of 773 respondents, a majority of

respondents, that is 60.93 per cent, had chosen the select life insurance companies, for the brand image they

have created. Security was the second reason for their choice. However, reputation had been cited as the reason

by eight point eight per cent of the respondents and prompt service has been indicated as the reason only by five

point three per cent of the respondents.

TABLE – 2 CLASSIFICATIONS OF THE RESPONSDENTS

BASED ON THE ADDITIONAL BENEFITS AVAILED

Additional Benefits Frequency Percent

Accidental Death Benefit 476 61.6

Disability Benefit 72 9.3

Critical Illness Benefit 72 9.3

Hospital Cash Benefit 58 7.5

Others 95 12.3

Total 773 100.00


Add-on riders provide additional cover to the respondents along with the main policies. It is evident from

Table-2 that out of the several additional benefits available to the policyholders, Accidental Death benefit was

the most sought rider with 61.58 per cent of the respondents opting for it. Disability benefit and critical illness

benefit were equally preferred by nine point three one per cent of respondents each. Hospital cash benefit was

opted by only seven point five per cent of the respondents. Hence, it could be concluded that, majority of the

policy holders preferred the add-on rider – Accidental Death benefit.

TABLE – 3 CLASSIFICATIONS OF THE RESPONSDENTS

BASED ON THE SOURCE OF INFORMATION

Sources Frequency Percent

Agent 556 71.9

Bank 66 8.5

Corporate agents 84 10.9

Franchises 36 4.7

Advertisements 31 4.0

Total 773 100.00


Table - 3 discloses the various sources of information about the policies to the respondents. It is worth noting

that, the agents were the main source of information, with 71.93 per cent of the respondents citing them.

Corporate agents marked by 10.87 per cent of the respondents and banks eight point five four per cent of the



respondents. However, Franchisees and advertisements were the source of information, for a minimum number

of respondents only. It can be inferred that, the important source of information for majority of the policy

holders was agents.

TABLE – 4 CLASSIFICATION OF THE RESPONDENTS BASED ON

THEIR PREFERENCE TOWARDS VARIOUS CATEGORIES OF POLICIES

Various Policies Frequency Percent

195 25.2

205 26.5

180 23.3

58 7.5

135 17.5

Total 773 100.00


The preference of the policyholders towards the various types of policies has been depicted in Table - 4. A

majority of respondents, that is 26.52 per cent, had favoured the money-back policies for the returns they get.

The number of respondents favouring endowment policies was 25.23 per cent of the respondents. The Unit-

linked policies were preferred by 23.29 per cent of the respondents and children’s policies by 17.46 per cent of

the respondents. However, only seven point five per cent of the respondents preferred the pension schemes. It is

observed that, the traditional policies namely Endowment and money back policies were the much sought

policies. The preference for unit-linked policies was also good. However with the privatization process, it is

expected that the demand for pension products would go up.

DISCRIMINANT ANALYSIS:

The researcher made an attempt to identify the factors that were more effective in the elements of marketing

mix of the companies chosen for study. In the five point scale, the options strongly agree and agree were

grouped as effective and the options no opinion, disagree and strongly disagree were grouped as ineffective.

Since the left hand side is a categorical variable discriminant analysis has been carried out. The suitability of the

discriminant function was verified with the help of classification results. When more than 75 per cent of

original grouped cases are correctly classified the model is considered to be valid and using the Standardized

Canonical Discriminant Function Co-efficient, the more effective factors for each company were identified.

Discriminant analysis identifying the factors that are to be concentrated more with a view to improve the

effectiveness of the marketing mix elements.

TABLE – 5 VALIDITY OF THE DISCRIMINANT ANALYSIS CLASSIFICATION

RESULTS OF PROMOTION MIX OF THE LIFE INSURANCE COMPANIES

LIC 81.9 per cent of original grouped cases correctly classified

BAJAJ 81.0 per cent of original grouped cases correctly classified

ICICI 77.0 per cent of original grouped cases correctly classified

Since more than 75% of original group cases correctly classified the model is valid. This has been substantiated

by Wilks’ Lambda Test also which revealed the following results.

TABLE – 6 RESULTS OF WILKS’ LAMBDA

Insurance Company Wilks’ Lambda Chi-Square Df Sig.

LIC 0.700 104.329 8 0.000

BAJAJ 0.727 63.376 8 0.000

ICICI 0.701 93.829 8 0.000

TOTAL 0.736 235.329 8 0.000

Since the Wilks’ Lambda results are closer to one, the model is considered to be valid.



TABLE – 7 EFFECTIVENESS OF PROMOTION MIX OF THE LIFE INSURANCE COMPANIES

Insurance

Company

Effective Ineffective Total

Frequency Percent Frequency Percent Frequency Percent

LIC 211 70.8 87 29.2 298 100.00

BAJAJ 159 77.6 46 22.4 205 100.00

ICICI 184 68.1 86 31.9 270 100.00


It is clear from table-7 that majority of the respondents belonging to the chosen companies felt that the

promotional strategies were effective.

In respect of LIC 70.8 per cent of the respondents considered the promotional mix to be effective while 29.2 per

cent felt it to be ineffective.

As regards, Bajaj 77.6 per cent of the respondents agreed that the promotion mix was effective whereas 22.4 per

cent considered it to be ineffective.

With regard to ICICI, the number of respondents who felt that the promotion mix was effective constituted 68.1 per cent

of the total respondents while it was 31.9 per cent of respondents who considered the promotion mix to be ineffective.

It is concluded that of the three companies, majority (77.6 per cent) of the respondents of Bajaj, considered the

promotion mix to be effective.

The percentage of respondents who considered it to be ineffective was maximum in case of ICICI followed by LIC.

TABLE – 8 VALIDITY OF THE DISCRIMINANT ANALYSISCLASSIFICATION

RESULTS OF DISTRIBUTION MIX OF THE LIFE INSURANCE COMPANIES








LIC 0.778 73.709 5 0.000

BAJAJ 0.817 40.549 5 0.000

ICICI 0.731 83.316 5 0.000

TOTAL 0.667 309.875 9 0.000


TABLE – 10 EFFECTIVENESS OF DISTRIBUTION MIX OF THE LIFE INSURANCE COMPANIES

Insurance

Company



LIC 229 76.8 69 23.2 298 100.00

BAJAJ 152 74.1 53 25.9 205 100.00

ICICI 184 68.1 86 31.9 270 100.00



distribution strategies were effective.

In respect of LIC 76.8 per cent of the respondents considered the distributional mix to be effective while 23.2

per cent felt it to be ineffective.

As regards, Bajaj 74.1 per cent of the respondents agreed that the distribution mix was effective whereas 25.9

per cent considered it to be ineffective. With regard to ICICI, the number of respondents who felt that the



distribution mix was effective constituted 68.1 per cent of the total respondents while it was 31.9 per cent of

respondents who considered the promotion mix to be ineffective.

It is concluded that of the three companies, majority (76.8 per cent) of the respondents of LIC considered the

distribution mix to be effective.

The percentage of respondents who considered it to be ineffective was maximum in case of ICICI followed by Bajaj.

TABLE – 11 VALIDITY OF THE DISCRIMINANT ANALYSIS CLASSIFICATION

RESULTS OFPEOPLE AND PROCESS MIX OF THE LIFE INSURANCE COMPANIES








LIC 0.697 105.191 9 0.000

BAJAJ 0.674 78.388 9 0.000

ICICI 0.573 146.823 9 0.000


TABLE – 13 EFFECTIVENESS OF PEOPLE AND

PROCESS MIX OF THE LIFE INSURANCE COMPANIES

Insurance

Company



LIC 235 78.9 63 21.1 298 100.00

BAJAJ 174 84.9 31 15.1 205 100.00

ICICI 204 75.6 66 24.4 270 100.00



customer care services were effective.

In respect of LIC 78.9 per cent of the respondents considered the physical evidence mix to be effective while

21.1 per cent felt it to be ineffective.

As regards, Bajaj 84.9 per cent of the respondents agreed that the physical evidence mix was effective whereas

15.1 per cent considered it to be ineffective.

With regard to ICICI, the number of respondents who felt that the physical evidence mix was effective

constituted 75.6 per cent of the total respondents while it was 24.4 per cent of respondents who considered the

promotion mix to be ineffective.

It is concluded that of the three companies, majority (84.9 per cent) of the respondents of Bajaj considered the

people and process mix to be effective.

The percentage of respondents who considered it to be ineffective was maximum in case of ICICI followed by LIC.

CONCLUSION:

The life insurance sector which is the most promising sectors in India has become a very attractive destination

for global insurance players. Increased dynamism in the external environment in the form of growth in

competition has made its imperative to bring about transformation in the life insurance market. A key issue for

the insurance players is to recognize the relevant marketing dimensions reaching out both new and existing

customers. Due to the privatization process initiated by the central Government several life insurance players

have come into the fray. The life insurance companies vie with each other to capture a significant share in the

life insurance markets. An effective marketing mix comprised of innovative products, pricing strategies,

attractive promotional tools, well designed distribution strategies, people-oriented quality service mechanisms



and physical evidence practices providing better infrastructure facilities has been facilitated by the companies.

In this context, an attempt has been made by the researcher to analyze the marketing mix of three major life

insurance companies namely the Life Insurance Corporation of India, Bajaj Allianz Life Insurance Company

and ICICI Prudential Life Insurance Company.

The attributes of each component of the marketing mix were identified and analysed by obtaining the opinion of

the respondents about each attribute. The socio-economic profile of the respondents was analysed and, it was

found that majority of customers falling under the age group of 41-60 gave preference for purchasing the life

insurance policies; in most of the families purchase of life insurance policy was the joint decision of the

husband and wife; customers earning a monthly income of ranging from Rs. 5,000 to Rs. 15,000/- had

purchased the life insurance policies. Respondents belonged to the three major religions namely, Christianity,

Hinduism and Islam. Two important factors were identified during the study. Brand image was the prime

criteria adopted by majority of the respondents for the selection of the company. Agents played a pivotal role in

providing information about the policies and were also the major intermediaries in the life insurance market.

Their commendable service was highly appreciated by majority of the respondents.

Of all the three companies namely, Life Insurance Corporation, Bajaj Allianz Life Insurance Corporation of

India and ICICI Prudential Life Insurance Company, Bajaj was sweeping high in respect of four major

components of marketing mix followed by LIC which occupied the dominant position in respect of two

components. As per the result of the study, ICICI had to improve in almost all the elements. In most aspects of

the marketing mix Bajaj has been dominating, perhaps indicating Bajaj stands for the best.

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AN EPIDEMIOLOGICAL STUDY ON CLINICALLY

SUSPECTED RHEUMATOID ARTHRITIS RURAL

PATIENTS OF EASTERN UTTAR PRADESH, INDIA

AUSAF AHMAD,

Research scholar,

Division of Biostatistics

Department of Community Medicine

IMS, BHU, Varanasi-221005, U.P., India

T.B. SINGH,

Professor,

Division of Biostatistics, Department of

Community Medicine, IMS, BHU,

Varanasi, U.P. India.

USHA,

Professor & Head,

Department of Pathology, I.M.S., B.H.U., Varanasi, U.P. India

ABSTRACT

Background and Objectives: Rheumatoid Arthritis (RA) is an auto-immune disease in which

body mistakenly considers some parts of its own system as pathogens and attacks them.

Prevalence of approximately 0.75% in India. About 40% diseased become work disabled within 5

years from onset of symptoms. The objectives of this paper are (i) to find the positivity rate

among clinically suspected cases and (ii) to find out the epidemiological risk factors for it.

Method: The study is based on 123 clinically suspected RA rural patients. Prospective cross-

sectional cohort study design was used. Clinically suspected cases were referred by different

OPD’s of Sir Sunder Lal Hospital for screening. About 2-ml of blood samples were collected in

plain vial from each patient and each sample were tested by the laboratory technician

Result: The overall prevalence of RA was observed 19.5%. This prevalence among aged upto 50

years and above 50 years prevalence was 20.8%, 13.6% respectively. The odd ratio was 1.6 with

95% CI (0.449-6.1558) .The prevalence of this was 13.7% among male as compared to 23.6% in

female where odds ratio was 1.9 with 95% CI (0.7399-5.1015).

Conclusion: The finding of this study suggests that the proportion of one fifth diseased cases to

total cases in rural patients. Females are more prone for this disease as compared to male. The

suspected cases having the family history had more chances to become diseased as compared to

cases not having the family history of RA. This disease also affects the quality of life i.e.

disability increases.

Keywords: Rheumatoid Arthritis, epidemiological, prevalence, auto-immune



INTRODUCTION:

The healthy human body is equipped with a powerful set of tools for resisting the onslaught of invading

microorganisms (such as viruses, bacteria, and parasites). Unfortunately, this set of tools, known as the

immune system, sometimes goes awry and attacks the body itself. These misdirected immune responses are

referred to as autoimmunity.1 in some cases; however, the cells of our immune system get out of control. They

turn against the body itself and begin to destroy healthy tissue. This result in autoimmune disease Autoimmune

diseases affect about five percent of people living in industrialized nations; over 80 of these “autoaggressive”

diseases are now recognized.2

Rheumatoid Arthritis (RA) is an auto-immune disease in which body mistakenly considers some parts of its

own system as pathogens and attacks them.3 Epidemiological study of Rheumatoid Arthritis are dependent on

the criteria used to define the disease. This is challenging, because no aetiological agent has been identified and

there is no unique clinical or laboratory features that can be used to define the disease clearly.4The prevalence

of rheumatoid arthritis (RA) varies between 0.3% and 1% worldwide and is more common in women and in

developed countries.5 Rheumatoid arthritis (RA) is a chronic systemic inflammatory illness with prevalence of

approximately 0.75% in India.6 It leads to irreversible joint damage and systemic complications. It is associated

with substantial morbidity and increased mortality.7,8 Patients with active RA suffer from significant decline in

functional capacity. As many as 40% become work disabled within 5 years from onset of symptoms.9 Direct

and indirect costs are also enormous.10

Symptoms include:

� pain and swelling around the joint, making it tender and warm

� stiffness in the morning, or if you sit for a long time

� poor grip strength

� tiredness, which can make you feel irritable and depressed

� flu-like symptoms such as fever

� weight loss

� Rheumatoid nodules – fleshy lumps that usually appear on your hands, feet and elbows.

RA affects everyone differently. Patients may find that their symptoms come and go with little pain, swelling or

inflammation. Flare-ups can last for a few days to a couple of months. They probably won't be able to predict

when they’ll occur.

Rheumatoid arthritis, are the number one cause of early retirement, disability payments, and loss of

employment.11 The social and economic consequences for the individual are drastic even in the first years

of the disease. Within seven years, up to 40 percent of patients are no longer able to work in their

profession.12 According to the WHO, this percentage rises significantly as rheumatoid arthritis progresses:

ten years after onset of the disease, nearly 60 percent of RA patients are no longer able to work.13

It is now accepted that those affected by these diseases must be genetically predisposed toward them.

Many autoimmune diseases occur more frequently within families, and in some families there is an

increased tendency toward autoimmune diseases.14 For some autoimmune diseases, such as rheumatoid

arthritis and multiple sclerosis, the genetic component of the disease has already been scientifically

verified.15, 16, 17

In addition, environmental factors like eating habits and lifestyle always contribute to this

predisposition to promote the development of an autoimmune disease. This means that not every

“genetically burdened” individual is certain to become ill. As well as predisposition, there is generally a

trigger. For example, smoking increases the risk of developing rheumatoid arthritis when there is a familial

predisposition toward the disease.18 In addition, Cigarette smoking is known to influence oestrogen related

conditions such as osteoporosis, onset of menopause, and oestrogen dependent malignancies.19, 20, 21

Autoimmune disease causes the body to lose its capacity for immune tolerance, which makes it possible for

a healthy body to differentiate between “foreign” substances and the body itself. Clearly, in these diseases

the autoreactive cells, which are always also found in healthy individuals, are excessively activated. Or

they escape from the control of the immune system.22,23

Finally, scientists have hypothesized that

pathogens may be the culprits that lead the immune system astray. The objectives of this paper are

(i) to find the positivity rate among clinically suspected rural RA cases and (ii) to find out the

epidemiological risk factors for it.



MATERIALS AND METHODS:

The present study is based on prospective cross-sectional cohort study design. In the present study 290 (110

male and 180 female) clinically suspected of rheumatoid arthritis patient were studied. Who were screened at

UGC Advanced Immunodiagnostic Training and Research Centre, Department of Pathology, IMS, BHU,

Varanasi, U.P. The cases were referred by different OPD’s of Sir Sunderlal Hospital. Mostly screened subjects

were from eastern Uttar Pradesh, western Bihar, Madhya Pradesh and Jharkhand. About 2-ml of blood samples

were collected in plain vial from each patient and each sample were tested for diagnostic tests RF, CRP and

AntiCCP by using RF-Latex, CRP Latex and ELISA method respectively by the laboratory person. The

patients for rheumatoid arthritis were diagnosed according to –

‘The 2010 American College of Rheumatology/European League Against Rheumatism classification

criteria for rheumatoid arthritis’ Classification criteria for RA (score-based algorithm: add score of

categories A–D; a score of _6/10 is needed for classification of a patient as having definite RA)

A. Joint involvement: Score 1 large joint. 0

2_10 large joints 1

1_3 small joints (with or without involvement of large joints) 2

4_10 small joints (with or without involvement of large joints) 3

>10 joints (at least 1 small joint) 5

B. Serology (at least 1 test result is needed for classification):

Negative RF and negative ACPA 0

Low-positive RF or low-positive ACPA 2

High-positive RF or high-positive ACPA 3

C. Acute-phase reactants (at least 1 test result is needed for classification):

Normal CRP and normal ESR 0

Abnormal CRP or abnormal ESR 1

D. Duration of symptoms:

<6 weeks 0

≥6 weeks 1

*ACPA (anti-citrullinated protein antibodies), ** ESR (erythrocyte sedimentation rate)

STATISTICAL ANALYSIS:

Initially data of rural subjects has been presented in number and percentage and then data were cross- tabulated

as male versus female and comparison with the age groups . Compute the prevalence of RA in rural areas. Also

find out the odds ratio with 95% confidence interval. Sensitivity, specificity, positive predictive value, negative

predictive value, accuracy, positive likelihood ratio, negative likelihood ratio along with 95% confidence

interval was calculated. For the purpose of analysis SPSS version 16.0 was used.

RESULT:

TABLE 1 SHOWING THE PLACE OF RESIDENCE ACCORDING TO

MALE AND FEMALE CLINICALLY SUSPECTED RA CASES

Gender Number of rural subjects (%)

Male 51(41.5)

Female 72(58.5)

Total 123

TABLE 2 SHOWING THE DISTRIBUTION OF RA CASES VERSES NON-RA

CASES IN MALE AND FEMALE CLINICALLY SUSPECTED RA CASES

Gender RA Cases Non-RA Cases

Male 7 44

Female 17 55



TABLE 3 SHOWING THE DISTRIBUTION OF RA CASES

ACCORDING TO DIFFERENT AGE GROUPS

Age Group RA Cases Non-RA Cases

≤ 40 15 59

>41 9 40

Total 24 99

TABLE 4 PERCENT DISTRIBUTIONS OF SCREENED CASES WITH RESPECT TO BIOLOGICAL

AND BEHAVIORAL CHARACTERISTICS ALONG WITH RELATIVE RISK AND 95% CI

Variables RA (%)

Non-RA

(%)

Chi-Square

value p- value

Relative Risk

95% CI

Age Group

0.068

0.79

1.104

(0.49-2.59)

≤ 40 15(20.3) 59(79.7)

> 40 9(18.4) 40(81.6)

Gender

Male 7(13.7) 44(87.3) 1.858 0.17

0.581

(0.23-1.36) Female 17(23.6) 55(76.4)

Type of Occupation

Sedentary 19(26) 54(74) 4.854 0.028

2.603

(1.00-7.69) Active 5(10) 45(90)

Family History

Yes 7(38.9) 11(61.1) 5.041 0.02

2.402

(0.99-4.90) No 17(16.2) 88(83.8)

Education

≤ Primary 15(27.3) 40(72.7)

3.815

0.051

2.061

(0.92-4.79) >Primary 9(13.2) 59(86.8)

DISCOURSE:

Most of the studies conclude that RA is more prevalent to the developed countries5. RA is rare in undeveloped

and rural areas(Symmons 2002), and the incidence of RA is higher among groups residing in urban areas. As a

result , urbanization and air quality have been proposed as risk factors for the condition (bankhead et al 1996;

Solomon el al 1975) although reports of such an association are conflicting (MacGregor et al 1994; Lau et al

1993). In this present study showed that number of registered clinically suspected RA cases of rural areas were

higher in comparison with urban and semi-urban areas. This was due to environmental risk factor like tobacco

smoking , which has been shown in a number of studies to be associated with increased RA risk 23-26

,

Associations between RA and factors such as diet 27-29

, coffee intake 30-32

, alcohol 33-35

, and body mass index 34-

36 .table 1 illustrate that total number of clinically suspected RA cases belong to rural areas were 123. Out of

123 rural study subjects, majority of subjects were female. This favour the previous study that female were

more prone to RA5. Lawrence (1998) said that there are 2.5 times as many women as there are men with RA

37.

In present study percentage of female clinically suspected RA cases to total study subjects was approximately

59%. In fifty nine percent female subjects, we observed that 24% were RA cases according to ACR 2010

criteria(table 1 ,table 2). With comparison to the male study subjects was 41% In which fourteen percent were

RA cases according to ACR 2010 criteria. Percentage difference between male to female RA cases is about ten.

This study result related to female RA cases added previous studies which found that the women have more risk

than men to the development of RA. Considering table 3 showed that age up to 40 years and above 40 years, 74

and 49 clinically suspected cases were registered respectively. In which total 70 were female study subjects.

Symmons (1994) and Gabriel (2001) said that RA affects women more commonly than men mainly women

after the age of 50 years38,39.

The percent distribution of RA positivity were 20.3 and 18.4 in the age group less than equal to forty and

greater than forty, which shows higher percentage at the age group less than equal to forty (Chi-square =0.068,

p>0.05). Some previous study exhibit mixed pattern of prevalence according to the age-groups, such as, in the

study of symmons(2002), The incidence and prevalence of rheumatoid arthritis increase with age. Globally, the



peak incidence of rheumatoid arthritis occurs between the ages of 55 and 64 years in women and 65-75 years in

men and the age of onset is rising (Symmons 2002). The prevalence of rheumatoid arthritis increases with age

and starts to decline at approximately 70 years of age (Linos et al 1980; Picavet and Hazes 2003). In addition to

being a risk factor for the onset of rheumatoid arthritis, older-age onset of the condition is characterised by more

rapid functional decline than younger-age onset (Symmons 2002). Positivity of female subjects were higher as

compare to male subjects (Chi-square=1.858, p>0.05). This finding is concords with an added linked studies,

for instance, Rheumatoid arthritis is more common among women than men, however, the ratio of female to

male cases decreases with age (Kvien 2004). Female gender may have an impact on symptoms and functional

outcome (Symmons 2002). The reason for the higher incidence and prevalence among women has not been

established (Kvien 2004). ).This study result related to female RA cases added previous studies, which found

that the women have more risk than men to the development of RA.

Considered the clinically suspected cases according to their type of occupation and family history, which shows

significant relation. Whereas age, gender and education not exhibit significant relation with RA. Although in

the study of Olsson et al., (2004) reported that an association between type of occupation and the risk of

developing rheumatoid arthritis has not been confirmed. There is some evidence of an association between

organic dust exposure and the incidence of rheumatoid arthritis in men . The familial nature of rheumatoid

arthritis suggests that genetic risk factors play a role in susceptibility to rheumatoid arthritis (Gabriel 2001).

Based on twin studies, the genetic contribution to rheumatoid arthritis susceptibility is estimated to be 60%

(MacGregor et al., 2000). Genetic variation in the human leukocyte antigen region is a contributing factor to the

genetic risk of rheumatoid arthritis (Stastny 1978). There are conflicting reports as to whether formal education

is associated with the incidence and prevalence of rheumatoid arthritis (Vliet Vlieland et al 1994; Gordon and

Hastings 2003). An Australian study demonstrated that the prevalence of rheumatoid arthritis was lowest

among those who attended university and highest among those leaving school before 15 years of age (Hill et al

1999). The identification of people at high-risk of developing rheumatoid arthritis and those with early features

of the condition can provide a framework for improving the overall management of the disease (Woolf 2003).

CONCLUSION:

The finding of this study suggests that the proportion of one fifth diseased cases to total cases in rural patients.

Females are more prone for this disease as compared to male. The suspected cases having the family history had

more chances to become diseased as compared to cases not having the family history of RA. This disease also

affects the quality of life i.e. disability increases.

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FACTORS AFFECTING ENTREPRENEURIAL

APPROACH: DOES RELIGION MATTER?

IRFAN AHMED,

PhD Scholar

Iqra University H-9,

Islamabad, Pakistan

DR. GHAZALA SHAHEEN,

Assistant Professor &HOD

Business Administration Department

Federal Urdu University of Arts,

Science & Technology, Pakistan

HAMAYU,

Assistant Professor

COMSAT Vehari Campus, Pakistan

SYED MUHAMMAD ALI,

Phd Scholar,

Iqra University H-9, Islamabad, Pakistan

ABSTRACT

This paper identifies the factors of entrepreneurial approach in Pakistan. The influence of religion is measured in the factors and in the overall entrepreneurial approach. Survey was conducted among the SMEs managers / owners in six districts of Pakistan. The results show that religion has not a significant positive correlation with the other factors of entrepreneurial approach. Moreover, overall entrepreneurial approach is also not influenced significantly by the religious beliefs. One of the limitations is the collection of data. Undergraduate students who belong to these districts and are studying in Islamabad were used for the collection of data. Most of the respondents were reluctant to participate in the study. Future study could be conducted in the other countries where other religious are dominant. The results might be different there.

Keywords: Entrepreneurship, Innovation, Competition, Autonomy, Market Resources, Religion.



1. INTRODUCTION:

"It is rather difficult to define an elephant, but you are not in doubt when you see one!" This is a statement of

Winston Churchill and is also true for the entrepreneurship - a concept surrounded by inscrutability and difficult

precincts. Defining in a simple words, entrepreneurship is the act of being an entrepreneur, which is a French

word meaning "one who undertakes innovations, finance and business acumen in an effort to transform

innovations into economic goods". In the recent years, the term ‘Entrepreneurship’ has been extended to include

social and political forms of entrepreneurial activity. Entrepreneurial orientation is a set of distinct but related

behaviors that have the qualities of innovativeness, pro-activeness, competitive aggressiveness, risk taking, and

autonomy (Pearce II et al. 2010).

Entrepreneurship plays very important role in economic activities like increasing employment, creating new

organizations, uncovering new production processes, and performing other activities which improve material

wellbeing (Hannafey, 2003). Many authors in 1980s and 1990s discussed entrepreneurship as a primary factor

for economic development (Baumol, 1990; Corriveau, 1994; Shapero, 1985; Daneke, 1989). Entrepreneurship

also plays very important role in global economic development although many economists and business

scholars disagreed on its significant relationship to such development. Its relationship with economic

development in developing countries as well as in developed countries remains a hot topic in the literature

(Grilo and Thurik 2006; Bhola et al 2006).

Entrepreneurial motivation is considered as the motivation to start a business. There is a surfeit of policy

measures with an entrepreneurship flavor that aim to stimulate innovation and growth (Stevenson and

Landstrom 2001; Landstrom and Stevenson 2005; Audretsch et al. 2007) and high growth firms are prominent

on the agenda of policy makers (Flischer and Reuber 2003; Smallbone et al. 2002; European Commision 2003).

Motivations have been shown to be a strong predictor of outcomes (Wiklund and Shepherd 2003; Cassar 2007).

Therefore it is important to understand the factors that explain the diversity of entrepreneurs in terms of their

motivations and aspirations. Studies are done to explore the reasons, motives or goals to start a business. There

are some cost-benefit types of studies that try to explain the decision to start a business (Cambell 1992; Douglas

and Shepherd 2002). In this type of study, material and immaterial risks and gains are brought into some

decision function. Some studies of entrepreneurial motivation investigating depth psychological motives. For

example; studies on the need for achievement (nAch; McClelland 1961; Collins et at 2004) and the need for

power (nPower) (McClelland 1975).

This paper investigates specifically the role of religious beliefs in entrepreneurial approach. Infact some people

are very much inspired by their religion beliefs even they are not following the daily religious practices. This

inspiration is usually seen very clear in their motives. Moreover, religious inspiration is always obvious when

discussing the pros and cons of particular activities. A study described that all economically developed

countries had got guidance from a series of requisite reformations in relation to the Catholic Church (Weber,

2004). Similarly, Muslims believe that a commerce activity is a Sunnah of Prophet Mohammad (P.B.U.H) as he

was also involved in such commerce activities (Bugra, 1994). In Western countries, push motives are less

prevalent hence studies carried out to report pull motives such as autonomy (also referred to as independence

and freedom), income and wealth , challenge, and recognition and status (Kolvereid 1996; Van Gelderen and

Jansen 2006; Cassar 2007). However individuals may also be pushed into entrepreneurship (Thurik et al 2008).

Push motives are referred to as necessity motives and these are present where (a threat of) unemployment forces

people into entrepreneurship and self-employment.

1.1 Purpose of the Study:

Pakistan is one the developing countries where the push motives are prevalent. There are some places like

Sialkot, Gujranwala, Gujrat and some districts of Sindh province where entrepreneurial motives can be seen.

Most of the SMEs are located in these areas. The question is that what are the factors behind this

entrepreneurial approach? This paper attempts to explore the factors, reasons, motives or goals to start a

business. Religious belief is the central/specific question of the study. The relationship of religious belief with

other factors is also measured in the study.

2. Literature Review:

Previous research explaining entrepreneurial aspirations and ambitions found many determinants on different

levels of analyses. Studies looked at individual level factors such as expectancies (Davidsson 1989; Cliff 1998;



Wiklund et al. 2003),opportunity costs (Cassar 2006), obstacles (Morris et al. 2006), social capital (Liao and

Welsh 2003), ability (Davidsson 1991; Cassar 2006), education and household income (Autio and Acs 2007)

and motives (Kolvereid 1992; Amit et al. 2001; Morris et al. 2006; Cassar 2007). Firm level characteristics

explaining growth motivations were studied by Kolvereid (1992), and Gundry and Welsh (2001). On the

industry level, Davidsson (1991) looked at opportunities and Kolvereid (1992) at the sector as a determinant of

aspirations.

As for as religious belief is concerned, several studies explain the impact of religion on the economic activities

(Weber, 2004; Furnham,1984, 1990; Bugra, 1994; Jones, 1997; Niles, 1999) and some studies discuss the

religious work ethics (e.g. Eben, 2008; Turkdogan, 2002; Ozdemir, 2006).

Policy goals usually do not correspond with the motives of enterprising individuals. Hardly anybody starts a

business in order to achieve innovation, job creation, or economic growth at the national level. Instead, people

desire personal profits, or autonomy, amongst others, or are forced into entrepreneurship because they have no

other options (Shane et al. 2003). Still, the type of individual entrepreneurial motivation may determine the

goals and aspirations for the firm, which in turn may determine macro-economic outcomes. Policy makers can

try to influence the type of entrepreneurial motivation in their jurisdiction, or they can accept the prevalent

motives and take these as a basis for their policies. It is vital for policy makers to know how entrepreneurial

motivations relate to aspirations.

Furthermore, previous research suggests that a country’s welfare institutions are likely to affect both the rate of

entrepreneurship and its allocation across productive and unproductive activities (Henrekson, 2005). However,

empirical efforts that explore such links are limited. A number of studies relate motives to aspirations (also

referred to as ambitions, goals, growth intentions, or growth attitudes). Kolvereid (1992) finds that the

achievement motive is related to growth outcomes, but no financial motives are studied. Strong evidence for the

relationship between financial motives and growth ambitions is presented by Cassar (2007). Using the US

PSED data to track people from nascent entrepreneurship to eventual firm performance, he shows that

motivations change over time, with financial motives gaining less importance. In addition, he finds that there is

a significant recall bias when nascent entrepreneurs are asked to remember their initial motives for starting the

business. The results show that initial financial motives strongly impact on sales and employment intentions,

growth preference, and risk-return preference. Morris et al. (2006) also find financial motives to be related to

growth ambitions. On the other hand, Amit et al. (2001) find that a group of growth-oriented high-tech

entrepreneurs is mostly motivated by non-financial concerns.

Circumstantial evidence for relationships between motives and aspirations can be found in the studies of

Davidsson and colleagues using an expectancy approach. Here, respondents are asked how growth would affect

a range of domains such as financial rewards, autonomy, control, and employee well-being. Growth willingness

is then explained from these perceived expected outcomes of growth. Davidsson (1989) showed that

expectations of financial reward and of increased independence are positively related to ambitions to grow. Fear

of loss of control and reduced employee well-being on the other hand are negatively related to ambitions to

grow. Wiklund et al. (2003) also explain growth ambitions from its expected consequences and find, in a

Swedish sample, that concern for employee well-being is the strongest predictor.

We expect the necessity, independence, and income/wealth attainment motives to be related to innovation, job

growth and export ambitions in the following ways. First, when autonomy or independence is a dominant

motive for becoming selfemployed, entrepreneurship is likely to be a vehicle to serve the freedom-related needs

of the individual. It will enable a lifestyle in which one can decide oneself on goals, methods, and time

scheduling (Breaugh 1999; van Gelderen and Jansen 2006). A larger firm can be seen as reducing external

dependencies and therefore increasing autonomy (Davidsson 1989). However, it is more likely that the majority

of autonomy driven entrepreneurs will see a small firm as a vehicle to achieve freedom. Research by Kolvereid

(1992) and by Morris et al. (2006) indeed found no relationship between autonomy and growth ambitions, and

Cassar (2007) even found a negative relationship. Whereas we do not expect the autonomy motive to be related

to growth aspirations, we do expect it to be related to aspirations for innovation. Autonomy is valued for its

own sake (van Gelderen and Jansen 2006), and thus an intrinsic motive. Experimental research shows that

intrinsic motivation is related to creativity (Amabile 1996). Previous research at the micro level found

autonomy to be related to innovation. Corman et al. (1988) report that independence is a prime entrepreneurial

motive for creating innovative ventures. Amit et al. (2001) showed a group of high-tech high-growth

entrepreneurs to be motivated by a range of non-financial drivers including autonomy.



3. HYPOTHESIS:

Innovativeness reflects an organization’s efforts to pursue new combinations that improve operations or provide

a new basis for meeting consumer needs (Pearce, Kramer, & Robbins, 1997). It represents the willingness of an

organization to support new ideas, novelty, and experimentation, and to depart from existing technologies and

practices. Many entrepreneurs start their business just because they want to create or produce something new

and religious beliefs of entrepreneurs encourage them to take such kind of actions. It is a common saying of the

people that “do the right and trust in God”. Hence, we make our first hypothesis as,

Hypothesis 1: Entrepreneurial aspirations in terms of innovativeness will be positively related to the religious

beliefs of an entrepreneur Competitive aggressiveness is a strategic behavior focused on expanding an

organization’s market share at the expense of competitors. This behavior is distinct from proactiveness in that

the focus of competitive aggressiveness is on growth in existing markets and at the expense of other providers

rather than focusing on being the first to address emerging needs. Some authors explored the role of competitive

rivalry among the organizations and all have concluded that while the preferred form of competition ranges

from implicit to explicit; all strive to maintain and grow their membership through competitive means. Many

businessmen sometimes couldn’t lead in the competition but they don’t be disappointed and say that this was

our destination by God. Therefore,

Hypothesis 2: Entrepreneurial aspirations in terms of competitive aggressiveness will be positively related to

the religious beliefs of an entrepreneur.

Autonomy is the ability to take independent action that affects strategy. Since layers of bureaucracy and

organizational tradition seldom contribute to new activities or programs (kanter, 1989), the ability of

parishioner groups to act independently increases the number of actions that can be simultaneously explored by

the organization. This increased action is put forward to improve the organization’s fit with environment, as

well as increase the participants’ commitment to the organization. People who think that always depend on God

and not on the people, have more ability to think independently. Therefore,

Hypothesis 3: Entrepreneurial aspirations in terms of autonomy will be positively related to the religious

beliefs of an entrepreneur.

Market Resources which are available in abundance in the overall environment support the organization

(Castrogiovanni, 1991; Dess & Beard, 1984). When resources are abundant, organizations enjoy a wider variety

of choices, easier access to resources, and mortality is decreased. Organization draws its resources mainly from

the surrounding market. Most people think that God has made everything for the service of mankind. Therefore,

man should utilize all the resources positively. If there is a rich market of all the resources then people with this

believe are inclined to use such resources by starting their own business. Therefore,

Hypothesis 4: Entrepreneurial aspirations in terms of availability of market resources will be positively

related to the religious beliefs of an entrepreneur.

4. METHODOLOGY:

This study used both qualitative and quantitative techniques. Six districts were selected to expand the

generalizability. These districts are located in different provinces of Pakistan. Names of the districts are Sialkot,

Gujranwala, Abbotabad, Jamshoro, Dera Ismail Khan and Islamabad. Respondents of this study were SME

owner/managers. Questionnaire based survey was conducted to collect primary data. Only those SMEs were

considered in the survey which had been established for more the 5 years. This is because sometimes the

businesses quit after 3 or 4 years of their start. Moreover, this would also measure the entrepreneurial

motivation of the managers/owners in a way that if they had been running their business for more than 5 years

and intended to continue in future then this confirms that they are more motivated than those who don’t want to

continue or existing less than 5 years. Therefore, SMEs which existed for less the 5 years were not included in

the survey. Previous researches were considered in designing the questionnaire items. For the constructs of

innovativeness, competition, autonomy and market resources, we used the measures from Pearce et al. (2010).

For the constructs of skills, we used the measures from Driessen and Zwart (1999). Religious constructs were

designed by considering the Batson and Scheonrade (1991a, 1991b). Five point likert scale ranging from 1

(Strongly Agree) to 5 (Strongly Disagree) was used in this study. For collection of data, we took the

service of some undergraduates who belong to said districts but studying in Islamabad. They used to go

to their native home after 2 weeks. We gave the instructions to them completely and provided them with



the questionnaires. They distributed the questionnaires and collected them after sometime. The total

questionnaires distributed and the response rate is summarized in the table.

TABLE 1: RESPONSE RATE OF QUESTIONNAIRES

District Questionnaires

distributed

Filled Questionnaires

received

Response Rate

Sialkot 50 30 48%

Gujranwal 60 25 41.6

Dera Ismail Khan 40 19 47.5

Abbotabad 35 20 51

Jamshoro 40 15 37.5

Islamabad 25 13 52

Total 250 122 48.8

Table 1 shows that total 250 questionnaires were distributed among all districts and 122 questionnaires

were received back after got them filled by the owner/managers. The response rate was 48.8%. After

scrutinizing, total 107 questionnaires were finalized for analysis.

5. RESULTS AND DISCUSSIONS:

The data was tested to evaluate the existence of validity and normality. The reliability analysis was taken out to

check the validity of the items. The Cronbach’s alpha of all the items was .715 which exceeded the .70 limit

recommended by Nunnally (1978). This demonstrated the validity of the instrument’s items. After validating

the items, composite scores were developed for each construct by summing the raw responses and then their

average was found out.

Normality test was conducted to identify outliers. The variables had acceptable levels of kurtosis and Skewness

(<1.0). A correlation of the variables was calculated to find out the relationship of variables with each other.

TABLE 2: CORRELATIONS, MEANS, AND STANDARD DEVIATIONS OF INDEPENDENT VARIABLES

1 2 3 4 5

1-Innovation Pearson Correlation 1

Sig. (2-tailed)

2-Competition Pearson Correlation .047 1

Sig. (2-tailed) .631

3-Autonomy Pearson Correlation .729(**) -.060 1

Sig. (2-tailed) .000 .536

4-MarketResources Pearson Correlation .253(**) -.259(**) .486(**) 1

Sig. (2-tailed) .008 .007 .000

5-Religion Pearson Correlation .661(**) -.141 .533(**) .410(**) 1

Sig. (2-tailed) .000 .147 .000 .000

Mean 2.1573 2.2967 2.4182 2.5047 2.6145

Std deviation .44205 .34363 .55241 .58522 .53672

N = 107, ** Correlation is significant at the 0.01 level (2-tailed).

Table 2 depicts that the correlation b/w innovation and religion is .661. This value shows a moderate positive

correlation between the both variables. Innovation shows high correlation with autonomy. Moreover it is less

correlated with other factors like competition and market resources. It is also shown in the table that

competition has negative correlation with the religion. Similarly its correlation with autonomy and market

resources is also negative. The relationship between autonomy and religion is shown as moderate (+ 0.533). It

has high correlation with innovation and negative correlation with competition. The relationship between

market resources and religion is also moderate (+ 0.410). We conducted a spearman’s correlation and the results

are as under:



TABLE 3: CORRELATION MATRIX

* Correlation is significant at the 0.05 level (2-tailed).

** Correlation is significant at the 0.01 level (2-tailed).

TABLE 4: COEFFICIENT OF DETERMINATION

Innovation Competition Autonomy Market

Resources

Overall

r 0.528 -0.212 0.404 0.204 0.567

R2

0.28 0.05 0.16 0.04 0.32

Percentage 28% 5% 16% 4% 32%

The above table shows the involvement of religion in other factors and in the over all entrepreneurial approach.

It is clear that R2 value of religion is very low in all the factors. It means that it has not a positive impact on the

other factors of entrepreneurial approach. Moreover, in the over all entrepreneurial approach, percentage of

religion involvement is 32 percent (R2 = .32) which is not enough. Therefore, we cannot say that religion has

significant impact on entrepreneurial approach. The share of each factor in overall entrepreneurial approach is

given in table 5.

TABLE 5: COEFFICIENTS (A)

Model

Standardized

Coefficients

(Beta)

Factors Shares in

Overall approach

1 (Constant)

Innovation .265 15.61%

Competition .206 9.44%

Autonomy .332 24.51%

Market

Resources .351 27.39%

Religion .322 23.05%

A Dependent Variable: overall

Innovation Competition

Autonom

y

Market

Resources Religion overall

Innovation Spearman’s

Correlation

Coefficient

1.000

Sig. (2-tailed) .

Competition Spearman’s

Correlation

Coefficient

.212(*) 1.000

Sig. (2-tailed) .028 .

Autonomy Spearman’s

Correlation

Coefficient

.580(**) -.045 1.000

Sig. (2-tailed) .000 .646 .

Market

Resources

Spearman’s

Correlation

Coefficient

.118 -.441(**) .463(**) 1.000

Sig. (2-tailed) .225 .000 .000 .

Religion Spearman’s

Correlation

Coefficient

.528(**) -.212(*) .404(**) .204(*) 1.000

Sig. (2-tailed) .000 .028 .000 .035 .

Overall Spearman’s

Correlation

Coefficient

.809(**) -.006 .802(**) .622(**) .567(**) 1.000

Sig. (2-tailed) .000 .949 .000 .000 .000 .



Table 5 shows the share of all the factors in over all entrepreneurial approach. It is clear that religion has 23

percent share in the overall entrepreneurial approach with innovation has 15.61%, competition has 9.44%,

autonomy has 24.51% and market resources have 27%.

From the above discussion, we conclude that religion has not a significant affect on the factors of

entrepreneurial approach and also on overall entrepreneurial approach. We summarize the result of our

hypothesis testing as follows:

Table 6: Summary of Research Hypotheses Results

1 Innovation and religion Not Supported

2 Competition and religion Not Supported

3 Autonomy and religion Not Supported

4 Market Resources and religion Not Supported

5 Overall Entrepreneurial approach with religion Not Supported

6. CONCLUSION:

From the above discussion, it is concluded that entrepreneurial approach does not depend on the religious belief.

Infact, the results showed that religion has 32 percent share in the overall entrepreneurial approach, but it is not a

significant share. This percentage can not influence on the decisions made by the entrepreneurs to start the

business or it has less influence in the motivation to start the business. Therefore, we cannot say that religious does

matter in the motivation to start a business. This study has been carried out in Pakistan where more than 96%

people are Muslim. Their Islamic beliefs usually reflect in their routine activities. That’s why we supposed that

religious beliefs can impact on the motivation to start the business. But our results do not support our supposition.

This study can be carried out in other countries where some other religions are dominant. The results might be

different there. One of the limitations in this study is the collection of data as we selected different districts for the

survey. We had to get help of some enumerators and undergraduate students for collection of data. They reported

that most of the business people were reluctant to participate in the study. Moreover, many people didn’t

understand the questions in the instrument. For their convenience, questions were also translated in Urdu language

so that they could easily understand the questions and reply the true answer.

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GROWTH OF APPAREL INDUSTRY IN INDIA:

PRESENT AND FUTURE ASPECTS

NAMRATA ANAND,

Assistant Professor, MMIM, MM University,

Mullana, Ambala, Haryana- India

VANDANA KHETARPAL,

Associate Professor, MMIM, MM University,

Mullana, Ambala, Haryana- India

ABSTRACT

Growth in Apparel Industry in India (AII) is increasing manifold with the change in lifestyle, earnings and urbanization of the customers. The worldwide consumers are accepting the apparel fashion products produced in India. AII has realized the immense potential to yield business in this segment. The Indian consumers are adopting fashionable items quickly and conveniently with the rise in competition. The present study has been conducted to derive the information on the trends of AII through analyzing the present and future aspects. The study has been conducted by analyzing the data collected from secondary source. The growth in AII with respect to global scenario has been studied and highlighted in detail. The study also evaluates the potential of growth of AII and the factors nurturing it.

Keywords: Fashion apparel, Retailing, Growth of Apparel Industry in India

Research Type: Descriptive



1. INTRODUCTION:

In addition to having faster population growth, India in recent decades has made remarkable socioeconomic gains, which have resulted in changing societal perceptions of the Indian consumers. Therefore, Indians have become a viable ethnic target market, after blacks and Hispanics, for marketers and retailers. The fashion of anything keeps changing with time. Earlier in India, the ‘kurta’, ‘lungi’ and ‘saree’ were a trend among Indians. All of these items were made of cotton. In the 1970s international fashion arrived in India with the bold colors, flower prints and bell-bottoms. Synthetics turned trendy and the disco culture affected the fashion scenario. It was a point, when the Indian fashion scenario reached a certain steady level and from there, in the beginning of the 21st century, with the evolution of new designers, models and more sensible designing, the fashion hype accelerated. The Apparel Industry in India (AII) is one of the leading apparel industries in the world. Primarily it was quite unorganized but the scenario has been changing with time. It was mainly started after the economic liberalization of Indian economy in 1991. The opening up of economy gave the much-needed thrust to the Indian apparel industry, which has now successfully become one of the largest in the world. India is one of the largest producers of fibre in the world. The main fibres produced in India include cotton, silk, jute, wool, and man-made fibres. India is the third largest producer of cotton, the second largest producer of silk and the fifth largest producer of man-made fibres. India has a strong domestic as well as international demand which led to huge growth of the AII. From the past few years fashion retailing sector is aligning with global trends with retailing firms such as Shoppers Stop, and Crossroads entering into middle class segment. It is being predicted that the apparel sector in India will grow at a very fast rate in the next few years. With the change in lifestyle, increase in per capita income and urbanization of the Indian consumers, the attitude of spending money on fashion related articles such as apparel is increasing a lot. Simultaneously the AII, accounting for the current demand and forecasting for the future demand of Indian consumers, has also gone through significant changes in production as well as availability of latest fashion designs and brands. AII has made a major contribution to the economy of the country in terms of direct and indirect employment generation and net foreign exchange earnings. The sector contributes about 14% to industrial production, 4% to the gross domestic product (GDP) and 17% to the country's export earnings. It provides direct employment to over 35 million people. The textiles sector is the second largest provider of employment after agriculture. Thus, the growth and all round development of this industry has a direct bearing on the improvement of the economy of the nation.

2. OBJECTIVE OF THE STUDY:

The objective of the present study was to study the trends of latest developments in the Apparel Industry in India (AII) and to analyze the scope for future growth in the industry.

3. LITERATURE REVIEW:

The size of both domestic and exports houses of AII is projected to grow at a CAGR of 9.5% to reach $223 billion by 2021 from the $89 billion in 2011, according to a white paper by industry body FICCI and research firm Technopak. India's share of the world's apparel exports stands at 4.5%. It is estimated that due to the increasing shift of apparel and textile production to Asian nations and the deteriorating export-competitiveness of China, this figure will grow to 8% by 2020, with a total exports value of $82 billion. This growth, from 4.5 to 8% of world trade, will open up huge potential for Indian players, the report said [1]. In 2007, the worldwide apparel market was worth 345 billion US $ and during the last decade the market grew at an average of 8% per annum. Moreover according to NSS Report on Household Consumption of Various Goods and Services in India, 2007 between 1993-94 and 2004-05, the proportion of households purchasing readymade garments has increased in both rural and urban areas by about 75%, while the proportion purchasing hosiery articles shows a three-fold increase. Apparel Export Promotion Council (AEPC) estimated that in value terms, the size of the Indian textile market was Rs. 1692 billion in 2007 recording a growth of 8.8% [2]. India has the potential to become a rapidly growing market for better-quality apparel, particularly brand-name fashion goods. The country’s sizable middle class of an estimated 200 million, which is expected to double in the next 10 years, includes an estimated 40 million people who prefer brand-name fashions. India has the potential to benefit significantly from ongoing global trade liberalization in apparel, particularly now that the GOI has deregulated the apparel sector. A recent study of the Indian apparel and textile industry concluded that



India has the potential to double its current world market share in apparel during the next 5 years, provided that the apparel sector invests about $16.6 billion in new production technology [3].

4. RESEARCH METHODOLOGY:

The present study has been conducted utilizing the secondary data collected from various sources such as published statistics, reports, journals, thesis, websites, etc. To understand the present developments and scope for growth in future in the Apparel Industry in India (AII), descriptive and case study approach has been used to reveal the facts.

5. APPAREL INDUSTRY IN INDIA: SCOPE AND CHALLENGES:

Apparel Industry in India (AII) poses an opportunity of tremendous economic growth. The emergence of branded apparel outlets, shopping malls are also increasing rapidly all over India. The change in the lifestyle of the Indian consumer, increasing working class, higher disposable incomes, dual career families, and many other social and economic changes offer a wide array of opportunities, and contribute in accelerating the pace of growth of AII. The major factors leading to a change in lifestyle are increasing per capita and household income, rapid urbanization, education and media & information. The apparel retailing in India consists of 95% of total sales in department stores; 70% in hypermarkets such as Big Bazaar, Spencer’s Retail etc. The apparel fashion retail brands have been elevating the business and economy in India rapidly. The men’s wear segment portrays the highest scope of growth. Presently, the growth rate is more for women’s wear; growing at 12%, and is expected to gain majority share in future. Other apparel segments such as kids wear are also increasing very rapidly [4]. The apparel industry is one of the extreme significant sectors of India in terms of revenue, investment, and trade and job creation. Apparel industry has tremendous product variety, short product life cycles, explosive and changeable demand, long and stiff distribution network. There is a transitional shift in the apparel industry with time [4]. Based on McKinsey report, the apparel is the most profitable segment of the Indian retail market. As shown in Table 1 [5], ‘food’ is the most organized segment, however it does not provide the desired profit. Apparel retailing is not as organized and large as food, but offers the highest margin. There is further scope of development of apparel retailing in India. Apparel consumers always prefer to have the latest style outfits, trying to replicate themselves as the elite section of the modern society. Majority of them patronize the trends of popular designer brands or those flaunted by Bollywood or sports celebrities. A country of over one billion population, an enormous consumer class, India is measured as the most favored destinations for trade and investments. Apparel and textiles are the largest segments in retailing industry. With mounting income levels and changing attitude "look good - feel good", fashion is providing gigantic potential to foray into the untapped Indian markets. Clothing is adopted by individuals to display their identity, and as an important means to express them in society. Apparel has been the most profitable sector in terms of development in India, not due to its volume but the way it has altered lifestyle of the consumers [4].

6. FACTORS NURTURING THE APPAREL INDUSTRY IN INDIA:

The AII is a rapidly growing segment; it is growing at a rate of 10% which is higher than that of retail segments. It is having about 10% share in the overall retail segment in India and is the second largest retail segment after food and groceries. It is also reported that the size of Indian domestic apparel industry will double within five years due to several factors such as economic prosperity, simplified government policy, growth in fashion orientation and brand awareness as well as consumer expectations. Moreover, the growth in AII in the future has been estimated to be at very high which is due to various influential factors. Some of the factors are discussed below:

6.1. Per Capita and Average Household Income:The per capita monthly income in India is growing with time. It was Rs 5,130 in 2011-12 as compared to Rs 4,513 in 2010-11. The per capita private final consumption expenditure in 2011-12 was estimated at Rs 42,065 as against Rs 36,677 in the year 2010-11, showing an increase of 15%. In the previous year also this rate was similar.

6.2. Increasing Trends of Special Occasions: The trend of special occasions in India is also growing with the increase in household income, urbanization of the people etc. The types of apparels and their



availability for different special occasions are making the consumer preferential. Consumer is ready to pay more to look trendy as per the theme of occasion. Not long ago, for example, men from India’s northern regions only required a dark suit or sherwani, the traditional long coat, to cover big occasions and important celebrations. From the past few years, men have started preferring Western stylist jackets, and collared shirts, “funky” fashion, stripes or checks for business meetings. Today, Indians are more inclined than consumers in other markets to buy apparel for a specific purpose [4].

6.3. Fashion Involvement: Increasingly, Indian consumers are embracing the idea of fashion. Traditional clothing remains central to the way consumers dress, and the quality and craftsmanship of classic Indian clothing have drawn rave reviews in recent years from some of the world’s leading designers, style magazines, and fashion blogs. In a recent McKinsey survey of Indian consumers, 62% said they thought it was important to “keep up with trends.” More than ever, Indian consumers are experimenting with combining styles. The active involvement of the consumer has made-up the chance of growing the industry in India.

6.4. Growth in the Women’s Segment: With increasing income and rising number of working women, the AII is witnessing rapid growth from past few years and this trend is expected to continue in future as well. The Indian women apparel market is anticipated to grow at a CAGR of around 11% during 2013-2015.

6.5. Rapid Urbanization: India had the second highest urban population in the world in 2012 and will be amongst the fastest growing urban populations globally between 2013 and 2020. About 29% of Indians live in cities n towns, among the least urbanization ratio of any country in the world. However that has been shifting fast in the forthcoming 20 years, anticipated number of Indians living in cities will grow by 300 million, where they will adopt new styles and fashions to cope with new lifestyles and social statute.

6.6. Globalization of Industry: The overall growth of the AII can be attributed to the globalization. About 35 million personnel are employed by the apparel and textile industry in India which accounts for 21% of the total employment generated in the economy. The globalization of the AII also leads to introduce the modern and efficient manufacturing machineries, and techniques. Moreover, the industry in developed countries like USA and UK have their manufacturing facilities in developing countries like India and China or they outsource the facilities of the latter countries due to the low manufacturing costs in developing countries. It increases the scope for more employment.

6.7. Diffusion of Fashion Innovators: Diffusion is the spread of a fashion object within and across social systems. It is highly dependent on the fashion innovators who help a lot in the fashion invention and introduction of new styles. A source of fashion objects, such as a fashion designer, entrepreneur, or consumer innovator creates an object that is noticeably different from its predecessors.

6.8. E-tailing of Apparel: With the boom in the organized retail industry and concept of online retailing (e-tailing) is catching pace, expansion strategies adopted by companies will give a new direction to the AII. The e-tailing of apparels in India is on radar for the majority of online consumers [6]. According to PriceGrabber.com’s Apparel Survey, 65% of the online consumers feel comfortable purchasing apparel through e-tailing [7].

6.9. Organized Retail: The chain of large and branded stores showing the products stocked systematically and displayed, will speed the transformation of consumer preferences. For now, organized retail accounts for less than 20% of all Indian apparel purchases. However, the scores of shopping malls have opened on the outskirts of India’s largest cities during last five years which has increased the trend of organized retail of apparels in India. The concept of getting many things right at once: figuring out what consumers want, developing a profitable retail concept, and building a solid team, is increasing which will surely grow the AII.

7. GROWTH OF APPAREL INDUSTRY IN INDIA: PRESENT AND FUTURE ASPECTS:

India, with a population of more than 1.2 billion people, has a huge domestic market. India’s middle class is half the country’s total population. Based on purchasing power parity, India is the fourth-largest economy in the



world, has the third-largest GDP in the continent of Asia, and is the second-largest economy among emerging nations. India is also one of the fastest growing economies of the world. Although the disposable income of the majority of the Indian population is low, as the Indian economy grows, more consumers will have greater discretionary income for clothing and other purchases after meeting their basic needs [3]. Change in consumers’ behavior towards shopping & lifestyle, increasing household income and urbanization of the customers are supporting the growth of AII. The growing apparel industry is contributing to the GDP of India. The export of the apparels in India is shown in Figure 1 which indicates that the export of apparels increased continuously over the years [2]. According to the study carried out by Technopak, the growth in the apparel segment is primarily driven by the growth in modern retail. An increasing number of international brands across formats shall foray into India to leverage the potential. Keen competition is driving international brands to adopt ‘made for India’ models leading to higher acceptance and thus increased share from around 18% in 2011 to 25% over the next five years [8]. Demand for nonwoven textiles has been growing with increasing domestic affluence, growing health consciousness to use more disposable clothes, and the cost effective production of synthetic fibres in India. The liberalization of the Indian economy has created opportunities to import machinery and technology at preferential tariffs and enter into joint venture arrangements with foreign firms. The technical textiles market in India has grown due to strong demand for automotive fabrics [3]. India’s total apparel and textile industry size (Domestic and Exports) was estimated to be Rs. 4,18,000 Crore (USD 89 billion) in 2011 and is projected to grow at a CAGR of 9.5% to reach Rs. 10,50,000 Crore (USD 223 billion) by 2021 (Figure 3). The current domestic apparel market is worth Rs. 2,73,350 Crore (USD 58 billion) and is expected to grow at 9% annually to reach Rs. 6,63,800 Crore (USD 141 billion) by 2021. The domestic AII is also expected to grow at a CAGR of 9%. Higher per capita consumption, favorable consumer demographic and increase in prices will drive apparel market growth in India [8]. The apparel and textiles sector has witnessed a spurt in investment during the last five years. The industry (including dyed and printed) attracted foreign direct investments (FDI) worth Rs 5,674.45 Crore (US$ 1.04 billion) during April 2000 to February 2013. The Government of India (GOI) has also promoted a number of export promotion policies for this sector. It has also allowed 100% foreign direct investment (FDI) in the Indian textile sector through automatic route [9]. According to the Technopak study, the buying behavior of the Indian consumer is changing with time (Table 2). The buying behavior of the consumer 10 years is quite different to the present one and the latter is quite different to the project buying behavior after 10 years. The choice of diversification of the mid-sized companies in India is also increasing leading to the forward integration into the retail sector. After building successful brands within the domestic territory, Indian apparel brands are venturing into international markets in order to enhance brand salience. According to the study, the main areas of apparels for the development and growth are kidswear, denim, contemporary ethnic wear for women, lingerie, lifestyle accessories and active & comfort wear [8]. The Indian textile industry is set for strong growth, buoyed by both strong domestic consumption as well as export demand. For the apparel and textile industry, the proposed hike in FDI limit in multi-brand retail will bring in more players, thereby providing more options to consumers. With consumerism and disposable income on the rise, the retail sector has experienced a rapid growth in the past decade with several international players like Marks & Spencer and Guess. The organised apparel segment is expected to grow at a compound annual growth rate (CAGR) of more than 13% over a 10-year period [9]. According to the research carried out by Corporate Catalyst India, along with the increasing export figures in the Indian Apparel sector in the country, Bangladesh is planning to set up two Special Economic Zones (SEZ) for attracting Indian companies, and duty free trade between the two countries. The two SEZs are intended to come up on 100-acre plots of land in Kishoreganj and Chattak, in Bangladesh. Secondly, Italian luxury major Canali has entered into a 51:49 Joint Venture with Genesis Luxury Fashion, which currently has distribution rights of Canali-branded products in India. The company will now sell Canali branded products in India exclusively [10].These facts highlight the fast pace of growth expected in the Indian apparel sector and offers tremendous growth opportunities for both domestic and global apparel players.

8. CONCLUSION:

The study describes in detail the facts about apparel fashion industry and its growth potential. In spite of the apparel consumer’s increasing demand and their active role in the diffusion of innovation, the study highlights the importance of research in the domain of apparel industry to tap this increasing potential. Apparel retailers and



suppliers also have a decisive role to play in order to understand the consumer behavior for buying the fashion apparel so that they may cater to this segment more profitably. They must take responsibility for the elements under their domain that also affect the technical factors in addition to the condition of machinery, efficiencies in the production line, and good management practices for growth of the apparel industry in India (AII). The growth of the AII is also highlighted by the increase in the number of large fashion events. Industry growth in India is mainly driven by the growing exposure of domestic designers at international forums, but growth is also supported by other factors such as the launch of focused business education courses for emerging designers and the establishment of an industry association. The role of e-tailing is also studied in this study. It is also an emerging area where the retailers or brand owners need to penetrate in more depth and with focused marketing strategies. This study also indicated the possible factors responsible for the growth of AII. Lacking in anyone of them will negatively affect the growth of AII. It is very much important to consider all factors accountable for the growth of AII and the factors which are more sensitive may be given more preference.

9. REFERENCES:

1. http://articles.economictimes.indiatimes.com/2012-10-10/news/34363404_1_apparel-exports-textile-and-apparel-cent-of-world-trade Accessed on 1th November 2013.

2. https://www.google.co.in/url?sa=t&rct=j&q=&esrc=s&source=web&cd= 1&cad=rja&ved=0CCgQFjAA&url=http%3A%2F%2Fwww.ihdindia.org%2FFormal-and-Informal-Employment%2FPaper-5-Garment-Industry-in-India-Some-Reflections-on-Size-Distribution-of-Firms.pdf&ei=Da-cUtmeMIyErAen5oDoAw&usg=AFQjCNGtvbQhHRrTl zeRaRdfLtyrtfmmZA&bvm=bv.57155469,d.bmk Accessed on 1th November 2013.

3. Simpson. V. (2001), “India’s Textile and Apparel Industry: Growth Potential and Trade and Investment Opportunities”, Publication 3401, United States International Trade Commission Washington, DC 20436.

4. Pani. A., Sharma. M. (2012), “Emerging Trends in Fashion Marketing: A Case Study of Apparel Retailing in India”, International Journal of Business and Management Tomorrow, Vol. 2(10), pp. 1-8.

5. http://csi.mckinsey.com/Knowledge_by_region/Asia/India/~/media/Extranets/Consumer%20Shopper%20Insights/Exhibit/exhibit_indiaapparel_2.ashx Accessed on 1th November 2013.

6. McCormick. H., Livett. C. (2012), “Analyzing the influence of the presentation of fashion garments on young consumers' online behaviour", Journal of Fashion Marketing and Management, Vol. 16(1), pp. 21-41.

7. www.priceGrabber.com Accessed on 1th November 2013. 8. Amit. G., Pakhie. S., Peush. N., Prakash. B., Ruby. J., Brahma.K.P. (2012). “Textile & Apparel

Compendium 2012”, www.technopak.com. 9. http://www.ibef.org/industry/textiles.aspx Accessed on 1th November 2013. 10. A brief report on textile industry in India. March, 2013, Corporate Catalyst Ltd.

----

TABLE 1: MOST PROFITABLE SEGMENTS OF THE INDIAN RETAIL MARKET

Category Typical retailer

margin Description

Food 15-20% − More than 80% organized retail in India is food, however, margin are not as high

Apparel 35-50% − Highest retailer margins through apparel

− The more organized segments like men’s formals provide the highest returns

Electronics 5-10% − Household appliances may provide as much as 8-10%, however, categories like cell phones may be as low as 5-6%

Source:

http://csi.mckinsey.com/Knowledge_by_region/Asia/India/~/media/Extranets/Consumer%20Shopper%20Insigh

ts/Exhibit/exhibit_indiaapparel_2.ashx



TABLE 2: TRENDS OF BUYING BEHAVIOR OF CONSUMER

FOR FASHION APPARELS WITH RESPECT TO TIME

10 Years Ago Current After 10 Years

Need-based Clothing

• Shirts

• Trousers

• Jackets

• Sarees

• Salwar Kameez

Occasion Specific Dressing

• Sports/ Gym wear

• Occasion specific ethnic wear

• Casual wear

• Office wear

• Night wear

• Party wear

• Work wear

Detail Oriented

• Design-based assortment for occasion wear

• Fast fashion

• Eco-friendly apparel

• Technical garments like temperature controlled/ IT-embedded garments etc.

Key Purchase Parameters

• Basic function

• Comfort

• Price

• Look

• Trend

• Fashion

• Exclusively

• Technical function (smart)

FIGURE1. EXPORTS OF APPARELS IN INDIA IN MILLION US $

(SOURCE: COMPUTED FROM RBI HANDBOOK)

FIGURE2. PRESENCE OF INTERNATIONAL BRANDS IN THE MODERN APPAREL RETAIL [8]

FIGURE3. TRENDS AND PROJECTIONS OF SALES OF APPARELS IN INDIA, BOTH DOMESTIC AND EXPORTS, IN RS CRORE [8]

----

-

2,000

4,000

6,000

8,000

10,000

12,000

18

87

-88

19

88

-89

19

89

-90

19

90

-91

19

91

-92

19

92

-93

19

93

-94

19

94

-95

19

95

-96

19

96

-97

19

97

-98

19

98

-99

19

99

-00

20

00

-01

20

01

-02

20

02

-03

20

03

-04

20

04

-05

20

05

-06

20

06

-07

20

07

-08

82%

18%

2011Domestic Brands

International Brands

75%

25%

2016

273

435

664

145

235

386

2011 (E) 2016 (P) 2021 (P)

Exports

Domestic



EMBRACING DIFFERENTLY-ABLED

MANPOWER TO BOOST TALENT AT WORKPLACE

TANIA MAHAPATRA,

MBA (HR), B.PT (Physiotherapy),

New Delhi-India

ABSTRACT

Numbers don’t lie! The 2001 Population Census of India had clearly made known that our

populace is mixed and diverse in nature with more than 400,000 people with disability (PWD).

Add to these the possible increase in statistics due to overall increase in population by 17 percent

through 2001-11. At times when India is deemed to be the next superpower because of its

massive manpower, we have a meager fraction of PWDs contributing to the national economic

growth. Hence, besides the governmental legislations in place, what we need is a holistic

approach to the integration of inclusion policy which goes beyond the barriers of race, gender,

culture and even physical impairments. While many global MNCs have set an example by

attempting to initiate approaches which identify PWDs as differently-abled rather dis-abled, the

common perception among Indian employers is the need for a 360 degree turnaround and sizeable

efforts to include them with ‘normal’ employees. This only adds to the woes of PWDs who,

against their wish, have to remain in their shell rather than enter the labor market. To encourage a

true diverse workforce, promulgation of inclusion policy, a simple process of attitude change,

architectural modifications and provision of job prospects to PWDs, is needed. Moreover, roping

in latest technological applications to assist impaired people to carry on functional tasks as

smooth as possible will help in creating a varied but synergetic manpower.

Keywords: PWD Act, Inclusion policy, Corporate Code of Disability, Accessibility Initiative, 3A

Approach, Apple’s Assistive Technology



INTRODUCTION:

POPULATION STATISTICS: MOTLEY OF ABLE CROWD:

The 2001 census of Government of India declared that out of 2.19 Crore population, 2.13% of the people fell

into category of disabled due to impairments in visual, movement, speech, hearing or/ and mental capacity.

Considering the statistics of 2011 Population Census which state that there has been 17.7% increase in total

population or, in other words, an addition of 18.196 Crore persons in absolute number of population over the

period 2001-11, it would not be inappropriate to assume that the percentage of people with disability (PWD)

might have gone upwards too [1].

India is a democratic state, and the Indian constitution imparts equal rights in terms of freedom to live and work

to all its citizens. Yet, only 49% of PWDs are literate and mere 34% of them are employed [2].

DISCARDING THE ‘DIS’ FROM ‘ABILITY’: NEITHER UNABLE NOR DISABLE:

Everybody is a genius. But if you judge a fish by its ‘ability’ to

climb a tree, it will live its whole life believing that it is stupid.

— Albert Einstein

With weakening of cultural and demographic barriers in the world of globalization, the concept of diversity and

inclusion has found its place. It helps in ensuring that employees from diverse backgrounds not only contribute

to the company’s growth but continue their allegiance towards it and thereby lead to comprehensive prosperity.

Transcending the present boundaries, nowadays the phenomenon is embracing generational as well as

differently-abled diversity too [3].

The levels of ‘ability’ and ‘disability’ are unique to each individual. Every one of us is gifted with distinctive

skills and capabilities that, if exploited constructively, can be used to build a career path out of. Still, presence

of health impairments or disabilities can interfere with the execution of duties at work place. In its Code of

Practice on Managing Disability in the Workplace, the ILO defines a disabled person as “an individual whose

prospects of securing, returning to, retaining and advancing in suitable employment are substantially reduced as

a result of a duly recognized physical, sensory, intellectual or mental impairment” [4].

LEGISLATIVE AND GOVERNMENTAL REGULATIONS: IS IT ENOUGH?

Existence of legislative measures like The Persons with Disabilities Act, 1995, encourages companies to

employ 5 per cent of the differently-abled people (public sector has a 3 per cent reservation since 1997). In case

of direct recruitment to Group A, B, C & D posts, 3% of the vacancies shall be reserved for persons with

disabilities of which 1% each shall be reserved for persons suffering from (i) blindness or low vision, (ii)

hearing impairment and (iii) locomotor disability or cerebral palsy in the posts identified for each disability.

Three percent of the vacancies in case of promotion to Group D, and Group C posts in which the element of

direct recruitment, if any, does not exceed 75%, shall be reserved for persons with disabilities of which one per

cent each shall be reserved for persons suffering from (i) blindness or low vision, (ii) hearing impairment and

(iii) locomotor disability or cerebral palsy in the posts identified for each disability.

Apart from above, 17 Vocational Rehabilitation Centers for handicapped (VRCs) have been functioning in the

country. These Centers evaluate the residual capacities of the handicapped and provide them training,

facilitating their early economic rehabilitation. Additionally, Special Employment Exchanges and The National

Employment Service have been set up for the exclusive placement of physically handicapped.

Certain welfare schemes like ADIP (Assistance to Disabled Persons for Purchase/Fitting of Aids & Appliances)

assist the needy disabled persons in procuring durable, sophisticated and scientifically manufactured, modern,

standard Aids and Appliances that can promote their physical, social and psychological rehabilitation, by

reducing the effects of disabilities and enhance their economic potential. The aids and appliances supplied

under the scheme must be ISI marked [5].

FROM PAPER TO PRACTICE: REALITY CHECK:

As United Nations (2007) cites that almost 74 percent of PWD people in India are unemployed, it is easy to

discern how much is still to be done before we can tag the national welfare schemes as successful. Most MNCs

are still considered about the effect of ‘inability’ to the required daily tasks in a conventional manner. As long



as their routine work is not hindered or they do not have to radically alter the complete infrastructure, they are

happy to participate in inclusion programs [6].

Therefore, despite lawmaking and regulative measures, there are several challenges for PWD to enter the labor market [7].

1. Lack of education/training or financial resources among PWDs;

2. Negative attitude and employer perception of differently abled people;

3. Inaccessibility problems by PWD employees due to absence of modifications and acceptable adjustments

required at work place;

4. Social stigma due to superstition and ignorance.

Javed Abidi, director of National Center for Promotion of Employment for Disabled People, reasons that the

phenomenon of inclusivity and diversity is not limited to charting out laws on paper, creating quotas or forcing

companies to recruit PWD employees. Instead it goes a step beyond in voluntarily embracing the differently-

able by modifying the work stations to provide accessible environment, and spreading awareness through

sensitization programs among present employees [8].

There is massive need to even alter the rules that govern what service a successful candidate with disability can

apply for. There have been instances when PWD candidates (of locomotor impairments) come out with flying

colors in national level exams like UPSC but have to bear the grunt of allocating authority who considers them

non competitive relative to other ‘mobile’ applicants, simply on the pretext that such nature of disabilities can

possibly hinder the execution of job in most services [9].

REDEFINING WORK PLACE: ACCOMMODATING ONE AND ALL:

‘Intelligence is the ability to adapt to change’ - Stephen Hawking

Simple strategies can be employed to make the PWD population equally able in living their lives just like the

rest of us, also making the inclusion policy successful [10].

� Architectural Modifications:

1. Creation of ramps and automatic sliding doors;

2. Wide doors and broad corridors to render wheelchair movement easy;

3. Signage – Braille and/or Bright light boards with large font alphabets;

4. Audio system installed at lifts, floors and emergency exits;

5. Lowering the height of work platforms, tea/coffee machines, and alarm bell;

6. Toilet modifications according to Universal Design;

7. Suitable adaptations in chairs/table and lighting system;

� Individualistic Adaptations:

1. Work assignments in electronic format for hearing and mobility impaired;

2. Audio-taped or Braille text for visually challenged;

3. Adaptive equipments as per the need;

4. Computers with voice output, spell checkers, specialized software;

5. Interpreters, real time captions, note-takers for hearing impaired.

� Education and awareness:

1. Workshops to create sense of empathy towards PWD people;

2. Manuals and worksheets to spread awareness about physical and non-physical disabilities – to eradicate

orthodox beliefs;

3. Encouraging group/team work to foster equality;

4. Creating such scales of performance that measures conduct towards differently-abled.

� Special Employment Service Providers:

1. Job-search support such as resume preparation, training assessment;

2. Render co-worker and employer support;



3. Career counseling or employment related assistance;

4. Furnishing information related to workplace modifications required, details of support services/NGOs.

BUSINESS CASE OF INCLUSIVITY: A BEACON OF HOPE:

‘Exclusion by nature is resource depleting and Inclusion on the

contrary aggregates and expands value’

- NASSCOM

For illustrative purposes, certain industry associations and private organizations can be noticed for initiating

inclusive programs for PWD people. Though drop in the ocean, the efforts by these businesses can certainly

serve as a guiding light for millions of other small, medium or big enterprises.

Following are some of the few business organizations who have volunteered to take the step and be the

inspiration for more such endeavors. [11]

� Confederation of Indian Industry (CII): A business organization founded to facilitate the growth of

industry in India, and represents both private and public sectors, including small and medium enterprises

and MNCs. Significant achievements by CII with respect to disability inclusion programs:

� Establishing Corporate Code of Disability (2006) to set guidelines for non-discrimination, measures for

accommodation and disseminating awareness among employees.

� Promoting recruitment drives which focus on encouraging people with disability to come forward and

make use of the available opportunities.

� Sensitizing the workforce towards diversity management through conclaves and workshops.

� Assisting Banks to make their service more accessible to visually challenged people.

� Through National Awards for the Empowerment of Persons with Disabilities, encouraging the CII

member companies to actively promote the constructive employment and managing of disable

employees.

� Organizing soft-skill and on-the-job training modules for special-needs people through collaboration with

educational institutes.

� NASSCOM Foundation: An organization of IT-BPO companies, its role is to promote trade, business

and research in the field of IT. Through NASSCOM Foundation, it introduced Accessibility Initiative

(2010) to empower PWDs and bring change changes in policy, practices and attitudes towards disability.

Notable accomplishments can be summed up as following:

� Commitment by 35 member companies to follow and promote disability -awareness & welfare – plans.

� Linking HR department of member companies to collaborate with VRC (Chennai) in providing career

guidance sessions to disabled people.

� Conducting Job fairs for direct hiring in prominent IT companies.

� Providing training through non-profit organizations which includes company visits and personal

interactions.

� CISCO, CDAN: A 3 group Disability Awareness Network helps in integrating PWDs into the workplace

more effectively. The first group, among 25 member core team, gets involved with NGOs to conduct

workshops and sensitizing programs among rest of the employees. The second group concentrates on

bringing out such technical support which can make the daily routine of PWDs much easier than before.

The third group looks towards creating an ergonomically beneficial environment for easy accessibility to

differently abled. Some of the special facilities, to quote, are as:

� Audio warning for fire alarm, easily accessible fire exit routes.

� Braille on all lifts and meeting rooms.

� Ramps at entrances to buildings and cafeterias.

� Automated sliding doors for hassle-free access.

� Modified wash rooms; vending machines at height of 1200mm or less.

� Wide space provided in workstation area.



� IBM India: It serves a ‘3A Approach’ to connect with PWD at workplace – Accommodation,

Accessibility and Attitude. It has even won a National Award for Accessibility Innovation. A special

networking group of PWDs called ‘EnABLEr’ work towards creating ergonomically suitable technical

and physical infrastructure for efficient workplace.

� Earned the National Award 2009 for exemplary research work, called Spoken Web, aimed at improving

communication among visually challenged as well as less literate people.

� Has a long history of inclusive culture, with first PWD employee hired a century ago.

� PWD employees have the prospects of getting any of the mainstream job in relation to their eligibility.

� Lemon Tree Hotels: Winner of NCPEDP- Shell Hellen Keller Award 2010, this well known hotel chain

believes in equality among all employees and therefore provides equal opportunities all its workers. The

PWDs are given comprehensive training capsules to make them efficient contributors to organization’s

growth. Sensitizing programs to instill self-confidence and motivation in disabled employees are

conducted so as to help them deal with their limitations in a healthy manner. In addition to that, the

organization has set a target of 10% inclusion of PWD employees by the end of 2013.

� EuroAble: The leading consumer durable company Eureka Forbes in association with NASEOH

(National Society for Equal Opportunities for the Handicapped) initiated a first-of-its-kind call centre,

EuroAble, managed by PWDs with an aim to provide them recognition in the today’s society. Rigorous

training in communication skills, voice modulation, English speaking skills and familiarization with

company’s product policy is given to all its employees. The infrastructure has been suitably modified

according to requirements of PWDs.

� INFOSYS: Having 5% of differently abled employees in their workforce, the organization practices

giving complete assistance to PWDs from the application stage to the induction phase. Through ‘Equal

Opportunity Team’ as much assistance is provided as could. Ministry of Social Justice & Empowerment

has had even recognized one of its employees as the Best differently-abled Employee in the year 2008.

� ITC Hotels: Differently-abled people can be found at all core levels of ITC Hotels be it HR, finance,

reservations, concierge etc. Moreover, the organization also links the managers’ key performances to the

number of PWD employees hired, thus promoting the inclusive workforce concept.

STEPPING OUT OF THE BOX: RECOGNIZING THE INDIVIDUAL ABILITIES:

Almost all jobs can be performed productively by someone with

a disability, and given the right environment most people with

disabilities can be productive.

– World Health Organization

Even though we have strong lawmaking steps towards the welfare of people with disability, and a small

percentage of organizations keen on embracing the idea of diversity and conclusion, the issues like attitudinal

change, educating the PWDs to come forward with confidence, educating the population that giving everyone

their due is a right thing rather than charity, directing all public and private companies to follow such

architectural plans that are conducive to everyone’s benefits, have not been earmarked on top priority list.

In today’s times, when we are always ready to embrace any new technology, a lot can be done when it comes to

improvisation in the field of making a barrier free environment for the PWDs. Designing ergonomically correct

workstation using virtual reality and computer simulation has had long been initiated in developed countries.

Besides, availability of software which makes an application to respond to eye movement, sound or touch is no

longer considered as extraordinary. For instance, using voice control systems such as Nuance allow users to

dictate messages to be typed on computers and Smartphone while also converting displayed text into intelligible

speech. Likewise, Apple’s Assistive Technology has swapped the need for a pinching or firm touch (for

navigation) with a slight or feeble tapping movement so as to enable people with motor problems to access the

applications. Yet, it’s the power of inculcating a positive approach towards welfare of PWD, which will

promulgate the need for more improvisations and effective solutions to render them independent in their daily

life [12].



All the same, even before major technological advancements come to the rescue, the most important thing is to

consider every single person, irrespective of any impairment or not, as an independent human being who

deserves to live life without being subjected to unnecessary glances of fear, contempt or pity.

“Use the skills that I have got;

Do not focus on what I have not;

Of course, I am aware of my limitation;

Yet, I am a part of God’s wonderful creation.”

-William E. Lightbourne

REFERENCES

1. Census of India (2001), Government of India, Ministry of Home Affairs, Available at:

www.censusindia.gov.in/ Acce ssed on 20th November 2013.

2. Caring for the Differently Abled, Government of India, Ministry of Rural Development, Available at:

http://www.rural.nic.in/

3. SHRM, Global Diversity and Inclusion, Perceptions, Practices and Attitudes, 2009, USA

4. Disability in the Workplace: Employers’ Organizations and Business Networks / International Labour

Office – Geneva: ILO, 2011

5. National Portal of India, Available at: http://india.gov.in/people-groups/community/differently-

abled/welfare-corner Accessed on 20th November 2013.

6. UN Enable, Employment of Persons with Disabilities, Factsheet 1, United Nations Department of Public

Information — DPI/2486 — November 2007

7. WHO (2011) World Report on Disability, Chapter 8, Work and Employment, Available at:

www.who.int/disabilities/world_report/2011/report / Accessed on 21st November 2013

8. Abidi J. (1999), “Current Status of Employment of Disabled People in Indian Industries”, Asia Pacific

Disability Rehabilitation Journal, Vol. 10 No. 2

9. Nagarajan R., “‘Disabled clear UPSC, struggle to get service” The Times of India, 2 Dec 2013, page 1 and 9.

10. http://www.disabilityresources.org Accessed on 27th November 2013.

11. Shenoy Meera, Coordinated macroeconomic, employment and social protection policies in Asia and the

Pacific / SuktiDasgupta and KeeBeomKim ; ILO Regional Office for Asia and the Pacific. - Bangkok:

ILO, 2011

12. May C. (2013) “Four ways technology can help disabled people” Available at www.reasondigital.com

Accessed on 21st November 2013.

----



EFFECTS OF TRADE ACTIVITIES ON LEXICAL VARIATION

AT THE ALGERIAN/MOROCCAN BORDER

MRS. ASMAA BOUCHEKIF,

Ministry of Higher Education and Scientific Research

University of Tlemcen, Faculty of Letters and Languages

Department of Foreign Languages, English Section- Algeria

ABSTRACT

The Algerian town Maghnia is only 28 km far from the Algerian/Moroccan border, the fact that

gives the opportunity for both Moroccan and Maghnaoui merchants to exchange various types of

goods along the frontiers. These trade activities are, in fact, done illegally because of the closure

of the borders since 1994. The aim of this work is to throw some light on the Moroccan lexical

items that characterize the Arabic variety used by Maghnaoui inhabitants. Moreover, it tries to

point out some of the economic, historical, and social aspects which cause the speech variety of

Maghnia’s residents to vary specifically beside the Algerian/Moroccan border when contacting

the Moroccan citizens. Furthermore, it attempts to speak about the speakers’ attitudes towards

such Moroccan borrowings.

The present paper attempts to illustrate that the two social forces, namely type of occupation

(traders vs. ordinary people) and place of residence have led to the emergence of clear and

consistent distinctions in the lexicon of Maghnaoui Arabic. On the basis of empirical

investigations and some recent observations, it has been inferred that Maghnaoui traders include

more Moroccan lexical items in their everyday speech than ordinary people. This is principally

related to the dialect-contact process and the population mobility when doing different trade

activities along the Algerian/Moroccan border. Additionally, other linguistic consequences,

closely linked with the settlement of some Moroccan people in Maghnia, as well as the

exogamous marriages between Moroccan and Maghnaoui individuals, can explain the existence

of some Moroccan borrowings in the vernacular of Maghnia speech community.

Keywords: The Algerian/Moroccan border, the effects, trade activities, the Moroccan lexical

variants, the Arabic variety of Magnaoui inhabitants , economic – historical and

social factors, social forces, dialect contact process, population mobility, speakers`

attitudes.



INTRODUCTION:

Recently, sociolinguistics, as an academic field of inquiry, has made great efforts in exploring language

variation and language change within distinct speech communities. The social mobility and dialect contact

which exist with the neighbouring towns have led speech variation to be regarded as an interesting subject

matter that needs to be talked about from various dimensions. As a result, many sociolinguistic works have

been devoted to speak about the development, change and spread of the phonological, morphological and most

importantly the lexical features in accordance with the social variables such as: age, gender, ethnicity, social

class, level of education, type of occupation and place of residence.

The speech variety which is studied in the present research work is spoken in Maghnia, a town that is only 28

km far from the Algerian/Moroccan border. Indeed, this small distance allows Maghnaoui traders to contact the

Moroccan merchants and exchange different types of goods with them. Although, the frontiers have been closed

since 1994, the reality is that trade activities have continued unabated. Consequently, the main concern of this

research paper is to answer the following questions:

� Do trade activities which take place at the Algerian/Moroccan border influence the lexicon of Maghnaoui

Arabic (henceforth MA)?

� What are the social constraints which underline lexical variation in the speech community of Maghnia?

� Is trade the only factor which has an impact on the vocabulary of Maghnaoui dialect, or are there any

other determinants?

To find reliable replies to the above questions, three hypotheses spring, as follows:

� Trade activities which exist along the Algerian/Moroccan border have a great effect on the lexicon of

Maghnaoui Arabic.

� The most important social constraints that explain lexical variation among Maghnaoui inhabitants are

their type of occupation (traders vs. ordinary people), in addition to their place of residence (Akid Lotfi,

Akid Abbas, the market centre of Maghnia and Souk Tlata market).

� Trade is not the only factor which affects the vocabulary of Maghnaoui dialect, but rather, there are other

historical, geographical and social determinants that lead the lexicon of Maghnaoui vernacular to vary

along the Algerian/Moroccan border.

LEXICAL VARIATION IN MAGHNAOUI ARABIC:

In the light of the data collected in Maghnia speech community by means of questionnaires, interviews, participant

observation and a friend of a friend procedure, it can be said that there is noticeable Moroccan borrowings in the

vocabulary of Maghnaoui Arabic. These lexical items are primarily related to distinct names of traditional cloths and

other products which are imported from the nearby Moroccan regions. The table bellow provides some of the

Moroccan borrowings that are employed by almost all Maghnaoui residents in their daily life interactions.

TABLE 2.1: NAMES OF DIFFERENT PRODUCTS

IMPORTED FROM THE ADJACENT MOROCCAN TOWNS

The Moroccan Loanwords English Gloss

1-[m��amma] “Traditional relt”.

2-[tekʃʃʃʃi��a] “Traditional cloth in double dresses”.

3-[qaf��a:n] “Traditional cloth in one dress”.

4-[��ella:ba] Traditional female coat.

5-[��abado:r] “Cloth made of long dress and trousers”.

6-[bli:��a�� “Slippers made of leather”.

7-[⌦⌦⌦⌦emmarija] “Rounded table for holding the bride”.

8-[ elbu:q] “Musical instrument”.

9-[labza:r] “Spices/pepper”

In addition to the words mentioned in the above table, there are other Moroccan borrowings which are

employed by both Maghnaoui traders and ordinary people when communicating with each other. The next table

presents some of these loanwords.



TABLE 2.2: THE MOROCCAN BORROWINGS USED BY BOTH TRADERS

AND ORDINARY PEOPLE IN MAGHNIA SPEECH COMMUNITY.

The Moroccan Loanwords English Gloss

1-[neggafa] “A specialized woman for the bride’s decorations”.

2-[mezja:n] “Beautiful”

3-[��afi] “Enough”

4-[bella:ti] “Slowly”

5-[daba] “Now”

FACTORS PROMOTING LEXICAL VARIATION IN MAGHNAOUI ARABIC:

Lexical variation in Maghnia speech community is not random, but it is conditioned by a number of outward

factors that have stimulated it. These can be historical, geographical, social as well as economic. The main goal

of this section is, in fact, to speak about the importance of these external pressures in leading lexical variation

and language change.

First, during the pre-independence period, there were many people from Maghnia who were forced by the

French colonizers to emigrate to the neighbouring Moroccan towns and settle there till independence, the fact

which causes them to bring some Moroccan words and expressions and include them in their everyday

conversations.

Second, the geographical situation of Maghnia that is located near the Moroccan frontiers leads to the

emergence of a dialect continuum1 along the Algerian/Moroccan border.

Third, before 1994 (, i.e. before the closure of the frontiers), there were exogamous marriages between the

residents of Maghnia and those of the near-by Moroccan cities. The reason which prompts its natives to share

with the Moroccan people some words, expressions, customs, traditions, ways of dressing, celebrating and

even cooking. In addition to the Moroccan architecture which is found inside Maghnaoui houses and shops.

Fourth, all Maghnaoui inhabitants regard trade activities which take place at the Algerian/Moroccan border as the

basic factor which leads them incorporating Moroccan borrowings in their everyday speech. Thus, the contact that

exists between Maghnaoui traders and the Moroccan ones when exchanging different types of products (such as:

cloths, accessories, vegetables, fruits and spices) influences the lexicon of Maghnaoui dialect.

ATTITUDES TOWARDS LEXICAL VARIATION IN MAGHNAOUI ARABIC:

It is generally known that language attitudes2 falls within the discipline of social psychology. But recently, it

has become an essential topic among sociolinguistic researches. The term “language attitudes” has, indeed, been

adopted by many sociolinguists (Fishman, 1975), and has been defined as the feelings (positive vs. negative)

some people have towards a certain language or language variety. Therefore, various techniques like structured

interviews and participant observation have been undertaken for the sake to speak about traders’ and ordinary

people’s reactions towards the Moroccan lexical characteristics inserted in Maghnaoui vernacular.

When asking both traders and ordinary people met in: Akid Lotfi, Akid Abbas, the market centre of Maghnia

and Souk Tlata market if they prefer to use the Moroccan loanwords or the native equivalents especially when

contacting the Moroccan brothers, we found several difficulties because they all have negative attitudes towards

the Moroccan members and their dialect as well.

Traders declare that they prefer to employ the local equivalents but in some situations (e.g. when phoning the

Moroccan merchants or traveling to the adjacent Moroccan areas), they found themselves obliged to borrow

some Moroccan lexical variants (like the names of some Moroccan cloths) just for facilitating and accelerating

the process of trade.

Similarly, all of the ordinary people admit that they prefer to use the Algerian words rather than the Moroccan

ones. They add that they are proud of their speech variety and they want to show this to the Moroccan members.

However, what happens in reality is the opposite since when opening a debate with the informants and trying to

ask them indirect questions, we found them using various Moroccan borrowings in their vernacular

unconsciously. These words are mostly related to the Moroccan cloths, accessories such as [tekʃi�a], [qafta:n],

1 A dialect continuum is a sociolinguistic key concept which refers to a chain of varieties that are mutually intelligible.

2 Labov was among the first ones who pay attention to language attitudes in his New York City Study (1966).



[�abado:r], [

�ella:ba], [ʕemmarija], [lemkab] and [lebu:q]. As a result, in spite of the negative attitudes that

Maghnaoui inhabitants have towards the Moroccan dialect and even towards its speakers, trade activities which

take place at the Algerian/Moroccan border have an impact on the lexicon of Maghnaoui Arabic.

CONCLUSION:

It has been agreed among language researches that drawing final conclusions about linguistic matters is

impossible because language is not static, but constantly in progress, even though, some interferences could be

made on the basis that the main goal of this research work has been to see to what extent the lexicon of

Maghnaoui Arabic is affected by the one of the neighbouring Moroccan areas. Besides, it has tried to provide

some insights into the economic, historical, geographical and social factors which lead the vocabulary of

Maghnaoui dialect to vary especially near the Algerian/Moroccan border when contacting the Moroccan

brothers.

It is worthwhile noting that the town of Maghnia is situated in the extreme North-West of Algeria, next to the

Moroccan frontiers. In fact, this geographical location has opened the doors for different trade activities

between the Moroccan and Maghnaoui traders that have continued until nowadays but illegally. This is

particularly related to the closure of the borders which has been declared by the Algerian political authorities

since 1994.

Consequently, the results achieved indicate that lexical variation in Maghnia speech community is an outcome

of its individuals’ type of occupation (traders vs. ordinary people of distinct sorts of jobs) as well as their place

of residence (Akid Lotfi, Akid Abbas, the market centre of Maghnia and Souk Tlata market). Also, it has been

demonstrated that trade is the principal economic element which has great effects on the vernacular of

Maghnaoui inhabitants. These impacts can be seen in terms of first, the lexical variants that are imported from

the near-by Moroccan cities and are inserted in Maghnaoui speech. Second, the various Moroccan customs,

traditions, ways of dressing, celebrating and even cooking which are observed in Maghnia. In addition to the

Moroccan architecture that is found inside Maghnaoui houses and shops as well.

Moreover, trade, which has been classified as the basic determinant that is behind the aforementioned

influences, is not the only one. In other words, there are other historical, geographical and social constraints that

cause the lexicon of Maghnaoui speech to be affected from distinct sides. The historical factor is related to the

emigration of the respondants’ grandparents to the adjacent Moroccan regions before the Algerian

independence. The geographical parameter is correlated with the small distance existing between Maghnia and

some of the Moroccan towns such as Oujda, Ahfir, Berkan and Beni Derar. The social aspect is linked with the

exogamous marriages between the Moroccan and Maghnaoui individuals particularly before the closure of the

frontiers (1994).

Yet, it has been proved that the number of Moroccan loanwords included in traders’ dialect is bigger than the

number of the ones inserted in ordinary people’s vernacular. This phenomenon is related to the long and daily

contacts which exist with the Moroccan merchants when importing and exporting different kinds of products.

Furthermore, it has been found that the lexicon of the speech variety employed by both traders and ordinary

people living in the two crossing borders of Akid Lotfi and Akid Abbas is more influenced than the one of the

same participants met in the market centre of Maghnia and Souk Tlata market. Therefore, one may admit that

the more you get nearer to the Algerian/Moroccan frontier, the more you find lexical similarities between the

Moroccan and the local dialects.

At last, one may ask the following question in order to open the window for further researches: do trade

activities which take place at the Algerian/Moroccan border affect the dialect used in the near-by Moroccan

towns? That is to say, are there any Algerian borrowings in the Moroccan speech variety?

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REVISITING THE VALUES OF HISTORICAL

RESEARCH-POST MODERNISTIC APPROACH

PROF. DEBASHRI BANERJEE,

Assistant Professor & Head,

Dept. of Philosophy

Chatra R. P. College, Bankura,

West Bengal, India

ABSTRACT

In this present article we have to search for the notion regarding Village Reconstruction as

conceieved by Sri Aurobindo. He was mainly known to be a great yogi and profound mystic

whose concept of yoga was much discussed than his other notions. But astonishingly like all other

contemporary thinkers of his time, e.g. Tagore, Gandhi etc, Sri Aurobindo was also not reluctant

to develop the life-structure of the villages and villagers. This theory concerning Palli Unnayan or

Village Reconstruction, according to Sri Aurobindo, is thought to be a part of National Self-Help

programmes taken at hands by the Indian political leaders at the time of 1905. And it was

preached by him very clearly and distinctly as he thought National Self-Development program is

an intrinsic part of Indian politics or Swaraj. National Self-Development scheme is useless unless

it could be used to advance the daily life-structure of each and every Indian villager.

Keywords: Sri Aurobindo,Village Reconstruction, National Self-Development scheme, Indian

politics.



INTRODUCTION:

Village reconstruction is thought to be a part of National self-help and National Self-development programme.

Now if we investigate properly, then we could find out that the actual aim of the British rule was to destroy the

social strength of India. How this foreign rule gradually destroyed Indian social life-structure, is vividly

depicted in Sri Aurobindo’s own writings – ‘…the Village samiti is the seed of Swaraj…when a nation is in a

natural condition, growing from within and existing from within and in its own strength, then it develops its

own centres and correlates them according to its own needs. But as soon as for any reason this natural condition

is interrupted and a foreign body draws to itself all the sources of nourishment and the natural centres, deprived

of their sustenance, fail and disappear. It is for this reason that foreign rule can never be for the good of a

nation, never work for its true progress and life, but must always work towards its disintegration and

death…We in India had our own instruments of life and growth; we had the self-dependent village; we had the

Zamindar as the link between the village units and the central governing body and the central governing body

itself was one in which the heart of the nation beat. All these have been either destroyed or crippled by the

intrusion of a foreign organism. If we are to survive as a nation we must restore the centres of strength which

are natural and necessary to our growth, and the first of these, the basis of all the rest, the old foundation of

Indian life and the secret of Indian vitality was the self-dependent and self-sufficient village organism. If we are

to organise Swaraj we must base it on the village.’1. In this above citation from Sri Aurobindo we become

aware of the fact that villages are considered as the basis of spreading swaraj among common Indian people.

STEPS OF VILLAGE RECONSTRUCTION:

Hence for the revival of India from the political slavery of British rule Sri Aurobindo dreamt of reconstructing

our villages. Now what are the steps of village reconstruction? There must remain some necessary steps in this

regard. To find out them again we have to look into Sri Aurobindo. The villages of Indian Territory must not be

considered as self-sufficient in themselves, but as living within a common group for common purposes. Each

group again must be the part of the district, each district must live as a subordinate part of the province, and the

province in its turn that of the country. This is the actual plan of reconstruction included into National Self-

development programme in India. It is known to be a famous Apex system of National Self-development

system. Villages are the core area without whose development the advancement of the entire Indian Territory

seems quite impossible. To make it a healthy growth and not an artificial construction we must begin at the

bottom and work to the top of the apex. The cell-life of the village must be healthy and developed for the

national body to be healthy and developed. Swaraj begins from the village’.2. Thus it seems from Sri

Aurobindo’s social-political thesis that villages remain as the basis of an entire nation, so that we have to raise

the cry for Swaraj from the villages.

Figure/Picture: Village to Nation

Village

↓

District

↓

Province

↓

Nation

The Apex System of National Self-Development Scheme

In Gandhi and Tagore, we also find out the somewhat similar explanation about the village reconstruction

scheme or palli unnanayan parikalpona.

GANDHI’S VILLAGE RECONSTRUCTION:

Actually Gandhi gave practical explanation of how to reconstruct a village thoroughly. Gandhi vividly

demonstrated the true nature of self-sufficient village communities by mentioning – ‘My [Gandhi’s] idea of

village Swaraj is that it is a complete republic….Thus every village’s first concern will be to grow its own food

crops and cotton for its cloth. It should have a reserve for its cattle, recreation and playground for adults and



children. Then if there is more land available, it will grow useful money crops, thus excluding Ganja, tobacco,

opium and the like. The village will maintain a village theatre, school and public hall. It will have its own

waterworks ensuring clean water supply. This can be done through controlled wells or tanks. Education will be

compulsory up to the final basic course. As far as possible every activity will be conducted on the co-operative

basis. There will be no castes such as we have today with their graded un-touchability. Non-violence with the

technique of Satyagraha and non-co-operation will be the sanction of the village community. There will be a

compulsory service of village guards who will be selected by rotation from the register maintained by the

village. The government of the village will be conducted by the Panchayat of five persons annually elected by

the adult villagers, male and female, possessing minimum prescribed qualifications. These will have all the

authority and jurisdiction required. Since there will be no system of punishments in the accepted sense, this

Panchayat will be the legislature, judiciary and executive combined to operate for its year of office. Any village

can become such a republic today without much interference, even from the present Government, whose sole

effective connection with the neighbouring villages and the centre if any’.3. This is the purpose of Gandhi’s

creation of Village Government.

TAGORE’S VILLAGE RECONSTRUCTION:

We also find out the Rural Reconstruction model even in the writings of Tagore. His familiarity was as a

renowned poet, but he was also considered as one of the pioneer of rural development programme. He started

rural reconstruction project at Sriniketan in 1921 aiming to make villagers self-reliant and able to use all rural

resources fully. Tagore realized that this problem of rural reconstruction were manifold and it was co-related

with health, economy, education etc. essential parts, and these parts are as well as inter-linked with each other.

The objectives of the programme, in the words of Elmhirst depicted as follows – ‘from the outset, we had two

main objectives, to survey the economic, social and scientific needs of the cultivator in his home, village and

fields, and secondly to carry out our own laboratory experiments in health, education, craft, cultivation and

animal husbandry’.4. Accordingly Tagore laid emphasis on economical background of villagers. Regarding

economic development Tagore’s aspiration was to make the peasants self-developed and he truly realized that

economic advancement should be done on the scientific ground. In this procedure, he considered education as

one of the important corollaries, because the educational development of rural children remains as the

foundation of the rural reconstruction program. Without proper education nobody can be able to realize the

essentiality of the village reconstruction procedure. And the village welfare department of the institute

[Sriniketan] from the very beginning took the programme of health and sanitation in the surrounding villages.

In the year 1929, the institute treated 6760 patients.5. Tagore firmly believed that poverty, disease,

depopulation, joylessness and backwardness of rural area could be removed only through co-operative efforts of

village reconstruction. In this regard, we can discover his theory is quite bit similar with that of Gandhi.

PART OF SELF-DEVELOPMENT SCHEME: AUROBINDO VS. GANDHI:

Thus village reconstruction is one of the important organizations of National Self-help movement. For the

development of a strong nation, the village also has to be developed. So village samiti appears as an

indispensable instrument of the National development procedure. What is the process of the so-called

development of Palli Samiti? In its answer we have to again mention about Sri Aurobindo. We have to set up

village schools in which our children will grow up as good citizens and patriots to live for their country and not

for themselves. We have to take up the control of the administration of justice, of self-protection, of village

sanitation, of small local public works etc in small scales, so that the life of the village may again be self-reliant

and self-sufficient. Self-help and self-dependence, the first conditions of Swaraj must depend for their proper

working upon the village Samiti.6. Hence in the social aspect, swaraj becomes equivalent with the idea of gram

swaraj. In this regard Sri Aurobindo’s thesis became somewhat similar with that of Gandhi.

TWO NECCESITIES OF VILLAGE RECONSTRUCTION: AUROBINDO’S VIEW:

Hence we could discover two such necessities of village reconstruction as following Sri Aurobindo.

The first one is, for the true attainment of Swaraj, we must awake the political sense of the masses. In this

endeavor, the reconstruction programme seems mandatory, as it will help to develop the lives of the villagers.

Thus we should start our mission of political reconstruction from the grass-root level, i.e. the villages. In a

democratic state the villages remain as the core of the nation and without the development of rural masses, the



development of urban people as well as that of the entire nation seems impossible. Without evoking the political

sense of common masses, the dream of attaining Swaraj cannot be fulfilled at all. And Palli Samiti is alone

compatible in work of evoking the political sense of rural India. The work of the village Samiti will be to make

the masses feel Swaraj in the village, Swaraj in the nation. They cannot immediately rise to the conception of

Swaraj in the nation; they must be trained to it through the perception of Swaraj in the village. The political

education of the masses is impossible unless you orgainse the village Samiti.7. Actually Sri Aurobindo’s main

intention was to make India as the spiritual guide of other nations. And for doing this, India’s political mastery

seems very much essential. However for making a whole nation politically developed, we have to develop the

political sense of the masses. Most people of a nation reside in villages, so we should develop the political sense

of the villagers at first of all. By the improvement of village life-structure, and then by the mandatory

advancement of that of cities, we can be able to develop the life-structure of the entire India. Hence the

development of Palli Samiti remains as an indispensable part of India’s political advancement.

The second necessity is this reconstruction of village Samiti will be helpful enough to destroy the social

differences between Hindu and Muslim races. It also seems helpful in uniting them not only from the political

stand-point, but also from the bottom of their heart. The foreign rule truly destroyed this so-desired Hindu-

Muslim unity as it conceived this one as a great threat against its rule of two decades over India. The ancient

Hindu rule, even the Muslim eras were different from this British era not only in their thought and culture, but

also on its nature. The Hindu and even the Muslim rajas and jamindars, in the ancient time, felt themselves as

parts of the ruled persons and so mutual love, trust and worship sustained between both the ruler and the ruled.

They strictly maintained the unity between both the Hindu and the Muslim these two completely separate sects

as it seemed mandatory for their self-preservation. But the foreigners advocate diversity between these two

sects, so that they will become powerless by constant fighting and quarrelling among them and never could

even try to preach for the necessary political liberty. Sri Aurobindo very wisely advocated the importance of

Palli Samiti in this regard. In his view, it will destroy the aloofness, the separateness of our lives and bring us

back the sense of community, the habit of mutual assistance and mutual beneficence. It will restore the lost

sense of brother hood. In this way, the old unity of our lives will be restored and the basis of Swaraj will have

been laid in the tie which binds together the hearts of the people of both these two sects.8. Thus by spreading

communal love by sharing every work, every happiness, every custom little bit with each other, the Hindu-

Muslim unity could be achieved. And in this above way, when religious as well as social unity can be attained

properly, then the attainment of the so-called political unity of entire India cannot remain far behind.

NEED OF VILLAGE SAMITI FORMATION:

Formation of Village Samiti is therefore urgently necessary in the view of Sri Aurobindo. Village Samitis are,

therefore, conditions to be fulfilled for the achievement of Swaraj or political freedom. Because for gaining the

political freedom of India, the arousal of political sense among common masses along with the most desired and

even the most controversial Hindu-Muslim unity seem mandatory. And Palli Samitis are the criterion to make these

two essential goals possible. Hence for attaining Swaraj, we need to advance our national self-help or national self-

development programmes along with our on-going national movements. Thus the formation of Palli Samitis must

remain as our practice of Swaraj. In the Kishoregung Speech (Kishoregung area is situated in Mymensingh district,

East Bengal) Sri Aurobindo ordered the entire Bengal to guide entire India in this political endeavor.9.

RELATION OF VILLAGE & NATION: AUROBINDO’S VIEW:

Now, in this context, we can search for the answer of the stated question – what is the relation between a nation

and its constituent, i.e. the villages? Actually the national life cannot proceed towards a glorifying future

without the advancement of its rural life. In the article named “Back to the Land” Sri Aurobindo clearly

depicted that – ‘It is an ascertained principle of national existence that only by keeping possession of the soil

can a nation persist; the mastery of the reins of government or the control of the trade and wealth of a country,

does not give permanence to the people in control. They reign for a while and then the virtue departs out of

them and they wither or pass away and another takes their place; but they tillers of the soil, ground down,

oppressed, rack-rented, miserable, remain, and have always the chance of the day overthrowing their oppressors

and coming by their own. When a small foreign oligarchy does the trading and governing and a great

indigenous democracy the tilling of the soil, it is safe to prophesy that before many generations have passed the



oligarchy of aliens will be no more and the democracy of peasants will still be in possession’.10. Thus the

development of palli samiti or village reconstruction scheme stood as the essential social ingredients of the

nationalist leaders after 1905. Actually when we have to make our nation politically free, then the freedom of

social aspects of the nation is also mandatory. The development of human health, sanitary system etc is also

tremendously necessary to use the self-help scheme of politics. Hence for the total advancement of the national

life, the development of human life’s every aspect, whether small or big, was given equal importance by the

nationalist leaders. In this way, it became an essential tool in Indian politics after 1905. Sri Aurobindo also took

the village reconstruction scheme as one way to achieve India’s freedom from social ignorance and means of

social reconstruction after becoming free from foreign domination. Sadly due to the lack of proper interest in

developing Indian villages after the Indian independence on 1947, we are suffering till now. If we can follow

the concepts of Sri Aurobindo, Tagore or Gandhi, at least even partly, then India will surely be socially and

economically grown like other developed countries, e.g. Japan, China etc, of the third world.

REFERENCES:

1. Sri Aurobindo, (1972), Bande Mataram, “Palli Samiti”, Sri Aurobindo Ashram, Pondicherry, p. 884-885.

2. Ibid, p.885

3. Narayan, Shriman, (1968), The Selected Works of Mahatma Gandhi, “The Voice of Truth”, Navajivan

Publishing House, Ahmedabad, Vol. 6, p. 345-346.

4. Elmhirst, Leonard K., (1961), Poet and Plowman, Santiniketan, Calcutta, p. 582.

5. Lal, Premchand, (1932), Reconstruction and Education in Rural India, London: George Allen and Unwin,

p. 7

6. Sri Aurobindo, (1972), Bande Mataram, “Palli Samiti”, Sri Aurobindo Ashram, Pondicherry, p. 886.

7. Ibid, p. 886-887

8. Ibid, p. 887-888

9. Sri Aurobindo, (1922), Speeches: on Indian Political and National Education, Sri Aurobindo Ashram,

Pondicherry, p. 69.

10. Sri Aurobindo, (1972), Bande Mataram, “Back to the Land”, Sri Aurobindo Ashram, Pondicherry, p. 732.

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THE SIGNIFICANCE OF PEACE IN BUDDHIST PERSPECTIVE

DR. MANISH MESHRAM

Assistant Professor

School of Buddhist Studies & Civilization,

Gautam Buddha University

Greater Noida, Uttar Pradesh. India

ABSTRACT

This paper provides a survey of the Buddhist vision of peace in the light of peace studies.

According to the Buddha’s teaching of Dependent Origination, everything, including the

psychophysical compound that we call individual, exists only in relation to other beings and

things and undergoes constant changes responding and reacting to them. The next section

examines the Buddhist perspective on the causes of violence and ways to prevent violence and

realize peace. The last section explores the potentials of Buddhist contributions to the

peacemaking efforts and the promotion of a culture of peace in today’s world. Believing that the

root of violence is located within the mind, Buddhism has placed a greater urgency upon inner

reflection. With the awakening to the interdependent reality, selfish compulsive responses will be

replaced by loving-kindness, compassion, sympathetic joy, and equanimity. On the behavioral

level, one practices peace daily by observing the Five Precepts. To prevent in-group disputes, the

Buddha teaches the six principles of cordiality in any community. As for inter-group or

international affairs, Buddhist scriptures are rift with stories that teach nonviolent intervention.

The article concludes the Buddhist worldview is surprisingly in accordance with the insights of

peace studies in its process oriented paradigm, its insistence on peace by peaceful means, and its

holistic framework of peace, which would play a vital role in the efforts of bringing the culture of

peace into existence around the world.

Keywords: Peace; Conflicts; Non-violence; Loving-kindness; Compassion; Buddhism



INTRODUCTION:

Buddhism has long been celebrated as a religion of peace and non-violence. With its increasing vitality in

regions around the world, many people today turn to Buddhism for relief and guidance at the time when peace

seems to be a deferred dream more than ever, with the wars in the Middle East and Africa, and the terrorist

activities expanding into areas where people never expected that scope of violence before such as Bali, London,

and New York. Yet this is never a better time to re-examine the position of Buddhism, among those of other

world religions, on peace and violence in the hope that it can be accorded in the global efforts to create new sets

of values regarding the ways people manage conflict and maintain peace via nonviolent means. This article

tends to provide a review of the Buddhist vision of peace in the light of peace studies. It also addresses the

Buddhist perspective on the causes of violence and Buddhist contributions to the peacemaking efforts and the

promotion of a culture of peace in today’s world. Buddhism, having enjoyed a long history and enrichment by

generations of people in various traditions, ranges north and south with branches across many cultures and

regions. However, a common core of Buddha’s teaching and practice is observed in major Buddhist traditions

and considered essentials of Buddhism. In this article, the term Buddhism is used to refer to the common core

teachings across the current major traditions of Buddhism.

THE CONCEPT OF PEACE IN THE BUDDHIST VISION:

Buddhists believe that the Buddha (meaning “the awakened”) awakened to the laws of the universe, which are

said to be operating eternally, whether the Buddha discovered them or not. The most fundamental among these

laws is the law of karma, or, in Buddhist terminology, dependent origination, which explains the genuine

condition of things that exist in the universe. In its simplest straightforward form, dependent origination claims

that anything (including sentient and insentient beings) can only exist in relation to everything else; if the

causes of its existence disappear, then it ceases to exist. Nothing can exist on its own and everything is

dependent on other things. All elements, all entities, all phenomena are thus related directly and indirectly to

one another in the universe. Any change in this huge interconnected compound of existence would definitely,

eventually exerts influence on everything else. Derived from the principle of dependent origination is the

Buddhist view of the cosmic world and the human being. At the macro level, the uni verse is represented and

seen from a Buddhist viewpoint as a network of jewels, an interconnected and interdependent web of nodes,

each of which simultaneously reflects all other hundreds of thousands of nodes in the web. All other nodes

would simultaneously reflect this specific node. This network is named “the Indra’s Net” in the Avatamsaka

Sutra (Taisho 9: 278). Each node can contain another web-like universe within itself and so forth with an

infinite number of webs, i.e. universes. In this vast, endless cosmos, everything is still interrelated even in the

most remote sense. According to the Buddhist beliefs, many of us cannot see or be aware of this relatedness as

we are confined by all sorts of limitations due to our past experiences and actions. Yet the connections are

always there. Down to the micro level, the human being is viewed as a string of processes governed by the

principle of dependent origination. Since everything within a human being (including physicality and thoughts)

depends on other things to exist, nothing within this human being is genuinely independent (autonomous).

The principle of dependent origination and the Buddhist view of the universe and the human beings undergird

an imperative for people who realize the interdependent nature of their existence and the interconnection among

all things — they would develop a strong sense of responsibility for their own behaviors, as well as appreciation

and empathy for others. It is from this realization of the true nature of existence that nonharming,

compassionate, altruistic action would arise. In the openings of many sutras, the Buddha, the one who

awakened to the cosmic reality, is described as naturally expounding four basic mental faculties

(Brahmaviharas, “Divine Abidings”; also named appamanacetovimutti, “immeasurable deliverance of mind”):

loving-kindness (metta), compassion (karuna), sympathetic joy (mudita), and equanimity (upekkha). The

Buddha teaches that these four mental faculties, together with the Four Noble Truths, are to be cultivated by all

bhikkhus (Skt. bhiksus) and later all Buddhists through reflecting upon the sentient beings of infinite numbers

who are on their way to become a buddha (see Taisho 1: 26). Yet the altruistic mental faculties are combined

with the wisdom developed along with the gradually deepening reflection. This is the guiding principle of all

Buddhist practices – the middle way. Through these mindful actions conducted with moderation can an ideal

Buddhist state of existence come true—living in harmony with everything (sentient or non-sentient) in the

universe.



BUDDHIST PERSPECTIVE ON CAUSES OF VIOLENCE/CONFLICT/WAR:

Buddhism, being a religion with a claim of the reality of existence, has well acknowledged causal forces that could

constitute the hindrance to a harmonious living on every level of human actions. Violence and conflict, from the

perspective of Buddhist principle of dependent origination, are, same with everything else in the world, a product of

causes and conditions. To eliminate violence and conflict, all we have to do is to resolve the underlying causes and

conditions. Using human body/consciousness as a division, the Buddhist analysis of the causes of violence and

conflict is arrayed along three domains: the external, the internal, and the root (Shih Yin-shun, 1980).

The External Causes of Violence and Conflicts:

The Buddha looks at the external causes of conflict as consequences derived from a general orientation common

to all living beings: avoiding harm and obtaining happiness. Anything contrary to this would result in disturbing

one’s peace and lead to conflict. If people want to live an ultimately happy life with no harms toward themselves

at all, the Buddha teaches, they should start with avoiding causing harm to others, physically and verbally at the

personal level, since people are afraid of physical violence and resent harsh words; and the physical and verbal

harm we inflict upon others usually leads to hate and conflicts that, in turn, would bring harm to us and cost our

happiness. As stated in one Buddhist Scripture, All fear death. None are unafraid of sticks and knifes. Seeing

yourself in others, Don’t kill don’t harm (Dhammapada, 18; translated by the author from Taisho 4: 210). Bad

words blaming others. Arrogant words humiliating others. From these behaviors Come hatred and resentme nt.

Hence conflicts arise, Rendering in people malicious thoughts (Dhammapada, 8; translated by the author from

Taisho 4: 210). And these malicious thoughts would, in due term, result in harm upon us since none are really

exempt from the influences of all others, including the people we harmed. The Buddhist principle of dependent

origination crystallizes the imperative of many peace workers’ advocacy for nonviolent interpersonal

communication and interactions as they are indispensable to what human pursue – a life of happiness. That is,

practicing nonviolence in speech and action would ultimately benefit the practitioner. In larger contexts,

Buddhism recognizes the indirect form of violence in the social systems to be external causes of conflicts as well.

Violence, conflict and war caused by injustice in political and economic structures bring even more harms to

people on a grand scale (Shih Yin-shun, 1980; Sivarksa, 1992; Sumanatissa, 1991). How to promote human rights

and equality along the social, legal, political, and economic dimensions of our collective structures, not for the

benefits of ourselves but for all’s, thus becomes part of the Buddhist mission to eliminate the potential causal

forces of violence and peace. Recognizing the material needs for sustaining human living, Buddhism postulates

the principle of Middle Way as a criterion in making decisions on all levels of activities and encourages frugality

as a positive virtue. The relentless pursuit of economic development and personal property regardless of

environmental or moral consequences is considered not in accordance with the Middle Way since it destroys the

balance between consumption and resources, as well as material gain and spiritual growth.

The Internal Causes of Violence and Conflicts:

Albeit external verbal and physical wrongdoings as well as social injustice are causing conflicts and violence,

Buddhism contends that these behaviors and structures originate all from the state of human mind, since the violence

and injustice are responses toward external stimuli produced by people’s inner mind operation. That is, the deeper

causes of any conflict lie internally in the mental operations within each being. For example, confronted with the

threat of physical and verbal harm, it is natural for us to feel fear, dislike, resentment, anger or hate. Out of this

negative caste of mind, we would again resort to a violent response, and hence a conflict arises. Similarly, institutions

or groups would respond to adversity with establishing policies or laws trying to protect whatever interest they

perceive to be under threat or attack, which would cause conflicts since others’ interest and well-being might be

undermined by these measures. In other words, physical and structural violence are the product of human mental

status such as fear, anger, and hate, which are considered in Buddhism to be the internal causes to violence and

conflicts. Even when no threat of personal safety or collective interest is in presence, conflicts may occur, from the

Buddhist perspective, as a result of our two major mental attachments to, first, subjective views, opinions and,

second, the desire for materials, relationships. The stronger the attachment is, the more obsessive one would be, the

more extreme behaviors one would engage, and the more severe the conflict would become. The attachment to views

refers to insistence on the correctness of one’s own views, ideas, and ways of doing things. It would elapse into

prejudice, polarity, negating other views and ways of life and ultimately negating people who are different from “us”.

The Buddha sees this attachment to difference as one major cause of in-group and inter-group conflicts. Two



thousand years later, this has also been identified by modern scholars as central to conflicts between ethnic, social,

religious groups and individuals (Blumberg, 1998; Myers, 1999). The second major cause of conflicts, the

attachment to desire, refers to want for material goods and longing for affection and belonging in human beings. It

can easily go beyond the level of necessity and become greed. The greedy desire to have and to own drives

individuals, groups, and nations into competition for what they want, followed by conflicts and even wars. As

depicted in Vibhasa-sastra: For the sake of greedy desire, kings and kings are in conflict, So are monks and monks,

people and people, regions and regions, states and states (The Middle Length Discourses of the Buddha, Taisho 28:

1547). This competition is discerned by the Buddha as a lose-lose situation: If we win, we incur resentment toward

ourselves. If we lose, our self-esteem is hurt (Dhammapada, Taisho 4: 210). None benefits from this competition

derived from greediness. Even winners accrue negative feelings from the lost party that inevitably plants seeds of

future conflicts. The internal cause of violence and conflicts as analyzed through a Buddhist perspective, corresponds

to many peace educators’ emphasis on intrapersonal peace building and the United Nations’ campaign for a culture

of peace. The focus on individual and inner transformation of attitudes on and interpretations of what happens

externally, which in turn would motivate appropriate change in behaviors, is considered more effective in eliminating

the causes leading to violence and conflicts on all levels of human interactions.

The Root Cause of Violence and Conflicts:

Behind the mental, behavioral and structural causes of violence and conflict, Buddhism goes even further to the

ultimate fundamental cause leading to all the suffering inflicted by violence and conflict. Buddha attributes all

our attachments, the resulting harming behaviors and the suffering hence caused, to the human ignorance

(avijja), that is, we can not see the world as it is and see our self as such. We are ignorant to the cosmic reality

that everything in the world is inter-related, interdependent. Not adopting the Buddhist worldview, we thought

we are separate from others as an independent entity: our views are different from theirs; our properties are

certainly not theirs. Hence we develop our attachments to views and desires through the reinforcing notions of

“me” and “mine.” We are not impartial in looking at things. We tend to focus on the harm that is done to us,

instead of examining the whole event in its context with all the causes and conditions conducive to its

happening. This ignorance to the principle of dependent origination alienates us from what really happens in the

situation and the complex set of conditions around any given event, and thus rids us of the possibility of making

correct assessment of the event and react accordingly in time. Without the lucidity to discern the causes,

development and effects of specific events, we are inevitably causing conflicts and doing harm to others as well

as ourselves all the time. Even wars between states come out of great fear and the collective ignorance (Thich

Nhat Hanh, 2003). This ignorance is what Buddhism identifies as the very root cause of violence, conflict, and

war, which prevents human beings to live a peaceful life.

APPROACHES TO PEACE IN THE BUDDHA’S TEACHING:

The Buddha’s teaching, though encompassing a wide range of complex belief systems, started with the

Buddha’s first preaching which is conventionally equated with the essence of his teaching — the Four Noble

Truths (catur-aryasatya). The first two truths discern the Causes of violence and conflict and the suffering

caused thereby: First, life inevitably involves suffering/dissatisfaction (duhkha-satya); and Second,

suffering/dissatisfaction originates in desires (samudaya-satya). The third and the fourth prescribe the cure for

this unpleasant way of living, that is, how to promote a peaceful way of living and ultimately live in peace:

Third, suffering/dissatisfaction will cease if all desires cease (nirodha-satya); and Fourth, this state can be

realized by engaging in the Noble Eightfold Path (marga-satya). In fact, all the Buddhist practices are de

veloped in accordance with the Four Noble Truths; that is, they are designed to enable people to alleviate this

suffering and to realize a peaceful state of existence at all levels. In this section, the Buddhist approaches to

peace can be categorized in four dimensions in the holistic/integrated model of peace in the field of peace

studies: intra-personal, interpersonal, in-group, and inter-group.

Insightful Reflection as the Practice of Intra-personal Peace:

To achieve peace within a person, the Buddhist approach is to observe and reflect upon the conditions in the

external and mental operations, and then to decide on the most appropriate course of action as response to the

outer and inner environments. With the most adequate response, we would not do harm to ourselves as well as

not harbor negative feelings and thoughts toward other. Before taking any external action to realize peace, the



first step for any Buddhist would be to look at ourselves and the events happening around us carefully and

honestly, “not sugarcoating anything about the realities of life, consciousness, or culture” (Sivaraksa, 1999: 42).

The greater urgency placed by Buddhism upon the inner reflection finds its doctrinal basis on the Buddhist

analysis of the roots of violence and conflicts within the mind. As the Buddha teaches, You should carefully

guard your mind, Maintaining the mindfulness all the time, In order to cease conflicts (The Middle Length

Discourses of the Buddha, Taisho 1: 26).

This is the starting point for the Buddha’s disciples to live in peace since peace depends not so much on what

happens to people, but on what attitude, comprehension, and response they give to the happenings. An

understanding of the complex set of plural forces, causes and conditions that have brought the event into being

and have shaped our immediate perception of, feelings for, and reaction to the event, only comes possible from

the insight (vipassana) we develop from inner reflection in the light of the principle of dependent origination.

As the Buddha testifies, Once I dwell in peace (= awakened to the universal), In adversity I react with no anger;

Living among angry people, I act with no anger (Dhammapada, Taisho 4: 210). With a clearer view of what

happened through practice of inner reflection, we are empowered with proactiveness; that is, we no longer

would respond compulsively, but would be capable of choosing a course of actions more appropriate and

beneficial to all parties involved, with no anger or hate harbored within ourselves.

This approach does not only work on the personal level, many contemporary Buddhist leaders of peace

movements give first priority to inner transformation within individuals on the path to peace in larger contexts.

The Venerable Thich Nhat Hanh (1999: 159) encourages people who would like to engage themselves in peace

activism to prepare themselves in advance by developing awareness and mindfulness for practicing peace, that

is, reacting “calmly and intelligently, in the most nonviolent way possible.” Inner practice on nonviolence is

hence considered a prerequisite to peace workers and educators. Further relating the impact of individual

practice to the whole picture, the Venerable Shih Sheng-yen (1999: 175) stresses the influence of few on many,

in that “peace in society begins with peace within oneself”, since the widening circle of influence of each

individual would expand from their immediate sphere gradually to the larger contexts. Without this “internal

disarmament” (as The Dalai Lama called it; see Hopkins, 2000: 194), our negative emotions derived from the

ignorance to the true operating principle behind all phenomena (including our own feelings and thoughts), the

fear, anger and confusion in the state of mind, would rise as reactions to the adversary conditions, and would

prevent us from acting nonviolently and living harmoniously with other people in the world. In addition to

ridding ourselves of the negative, non-peaceful feeling and thoughts within us, through the practice of reflection

upon the dependently originated reality (i.e. seeing and experiencing the interconnections and mutual

dependence that run through everything in this world), concerns for other beings woul d evolve and slowly

become as natural as concerns for self in the process. Such conceptions would facilitate the cultivation of four

positive emotional faculties (Pali: appamañña or Brahmavihara): metta (loving-kindness), karuna

(compassion), mudita (sympathetic joy), and upekkha (equanimity). These pro-social qualities derived from the

understanding of the interdependent reality would compel a natural drive for altruistic actions: The one who

dwells in compassion would not have a conflictual volition; The one who dwells in loving-kindness would

always act most appropriately (Dhammapada, Taisho 4: 210). Though internally generated, these positive,

prosocial qualities contain an outward orientation. That is, the intrapersonal practice of insightful reflection is

closely connected with the external practice of nonviolence and mutually enhances each other since the inner

nonviolence and peace would be manifested in the five precepts, the fundamental code of conduct for all

Buddhists to live in harmony with other beings in the world.

Six Principles of Cordiality as the Practice of In-group Peace:

The Buddha’s disciples (monks and, later, nuns) live a communal life since the Buddha does not encourage

monks and nuns to live in solitude all the time, hence without opportunities to cultivate the four immeasurable

deliverances of mind, loving-kindness,compassion, sympathetic joy, and equanimity. Within any groups,

including Buddhist ones, exists the possibility of disputes and conflicts. To prevent harm and suffering caused

by disputes and conflicts among people, the Buddha teaches the six principles of cordiality (Pali: cha dhamma

saraniya) that would “create love and respect and conduce to cohesion, to non-dispute, to concord, and to

unity” (Kosambiya Sutta, 6, The Middle Length Discourse of the Buddha: 420) in a community. Similar to other

Buddhist codes of conducts that aim at cultivating inner states of mind as well as regulating external behaviors,

the principles of cordiality prescribe that in private and in public, one maintains 1) bodily acts, 2) verbal acts

and 3) mental acts of loving-kindness toward other group members, 4) shares material gains with others, 5)



follows the same codes of conducts, and 6) holds the same view that woul d lead “one who practices in

accordance with it to the complete destruction of suffering” (Kosambiya Sutta, 6, The Middle Length Discourse

of the Buddha: 421). While the first three principles focus on the direct impact of individual group member’s

acts upon other members, the last three refer to the indirect structural and cultural impact. The fourth principle,

equally sharing material goods with each other, denotes a fair distribution of resources among members within

a community. The economic and financial justice could further reduce the attachment to material and monetary

possessions as a root cause of conflicts. The fifth one, following the same codes of conducts, refers to the

regulations of an organization, or legal systems in a nation-state. The Buddha also demands that the regulations

should be “not misapprehended, justly, unbiasedly stipulated with the purpose to completely alleviate suffering”

(The Middle Length Discourse of the Buddha: 420-1). The last principle, sharing the same view, deals with the

deviance in opinions among group members. In the Buddhist sangha, sharing the same view does not mean

ruling out the diversity or disagreement (for examples, see the Kinti Sutta, The Middle Length Discourse of the

Buddha: 103.4ff; and the Bhaddali Sutta, The Middle Length Discourse of the Buddha: 65.7ff). In the original

sangha operation, when disputes arise, social harmony within the community is built on small group dialogue in

which diversity can be expressed and discussed. At the same time, through dialectic exchange in the assemblies,

members would find and confirm their common ground resorting to the ultimate goal of complete destruction of

suffering. In the scripture (Mahaparinibbana Sutta, The Long Discourses of the Buddha: ii.154), the Buddha

places a high value on these meetings.

In the seven criteria he uses to evaluate the social strength of each monastic order, holding regular and frequent

assembly meetings is ranked as first, the primary criterion. And the second criterion states that sangha members

are supposed to conduct their business in harmony during the meetings. To ensure fairness and harmony, the

sangha assembly meeting procedures, recorded in the Vinaya (For example, in Taisho 22: 1428 and Taisho 23:

1438), depict a democratic nature of these meetings — shared authority, distributed responsibility, balanced

participation, and decision aspiring to consensus (Chappell, 2003; De, 1955; Khongchinda, 1993; Thich Nhat

Hanh, 2003). These procedures are very similar to those advocated by conflict management and Organizational

communication scholars of our own time.

Nonviolence Intervention as the Practice of Inter-group/International Peace:

In the inter-group or international affairs, the Buddhist insistence on dialogue and nonviolence still rings true.

The Buddha once tells a story of the King of Longevity to illustrate his stance on war and retribution while

facing violence or foreign invasion. In the story, the king, when his country was invaded by another king, gave

up the armory defense to protect the lives of his people. He also asked his son not to seek revenge for the brutal

death of him and his wife. Later, when the son had three opportunities to kill the enemy king, he did not do so,

following his father’s last words, and explained everything to the enemy king. The enemy king, deeply moved,

regretted his past wrongdoing and returned the land he had invaded. As the moral of the story, the Buddha

concludes that “if one seeks retribution for vengeance through vengeance, the chain can never be broken”

(Taisho 1: 26). This emphasis on absolute nonviolence is exemplified in the Buddha’s intervention while his

home country of the Sakyans was to be invaded by a neighboring country. The Buddha in his old age sat at the

border of the two kingdoms to try to talk the warlike king out of his plan. His persuasive argument successfully

convinced the king for two times but the third time he failed. The king marched his army and killed almost all

the Sakyans who, following the Buddha’s teaching of not taking life, did not fight back at all. Yet the story did

not end in a negative tone since the principle of dependent origination was brought in and the causes and

conditions leading to the horrific suffering of the Sakyan clan were explained (Taisho 2: 125). This absolute

insistence on non-violence in the face of violence has incurred criticism of Buddhism being passive pacifism

which could not prevent human suffering. Yet a very recent event may add a more positive angle to the

nonviolence principle in practice. For the first time in ten years, China resumed dialogue with a delegation from

Dharamsala’s Tibetan Government-in-Exile in September 2002. The Dalai Lama has long insisted on peaceful

means in dealing with China on the sovereign of Tibet. His unwavering commitment to non-violence has

accrued worldwide respect and sympathy for the Tibetan people. Instead of expressing anger and determination

in seeking revenge, the Dalai Lam found common ground with the Chinese by recognizing that the Chinese are

just like him — wanting no suffering but happiness, and they are also conditioned by the principle of dependent

origination as the Tibetan people (Chappell, 2003). His insight into the current situation and his capacity to

empathize with the perpetrators have enabled him to find alternative ways of responding to the harms and

damages done to the Tibetan people. The Dalai Lama advocated a “Middle Way” for Tibet: not full



independence but self-governed by a democratically elected government, as well as vision of Tibet as a Zone of

Ahimsa (Herskovits, 2002: 5). The Buddhist approaches to peace can substantiate this model of peace by

proving that nonviolence does work and can strengthen the beliefs that absence of violence is never productive

without non-violence practiced at all levels of human activities.

FUTURE STRATEGIES:

The potentials that these perspective and practices that Buddhism may enrich the fields of peace studies and

peace activism of course certainly merit further investigation in theories as well as in practicum. Along with the

longtime criticism of Buddhism as a passive and individualistic religion which encourages people to withdraw

from the real world (for a review of criticisms, see Queen, 2000), over-emphasis on the role of inner

transformation and the widening circle of individual influence as approaches to peace in larger contexts may

seem slow and procrastinating in the eyes of those who consider immediate effort is needed in working for

social justice and conflict intervention. Whereas the compassion and loving-kindness cultivated within

individuals can certainly be necessary for transformation into a new culture of peace, specific areas of problem,

such as class/race oppression and environmental degradation need to be adequately addressed and fully

explored. The introduction of the concept of nirvana into the West since the early days may also cause

misunderstanding of peace as the ultimate existence in Buddhism. In some Buddhist branches, the state of

nirvana equals with ultimate peacefulness (Jayatilleke, 1969), or it is considered as an ultimate solution for

conflicts (Galtung, Jacobsen, & Brand-Jacobsen, 2002). Since nirvana is extremely difficult to attain for almost

all Buddhists, the equation (peace = nirvana) renders peace a remote, unattainable label that would not be

conducive to any present peacemaking efforts. Along the same line of thinking, interpreting “right

concentration” (one of the Noble Eightfold Path) as being peace would be easily misunderstood to be that one

can only stay in peace on the meditation mat, if without adequate background in the Buddhist traditions. These

two cases would call for greater efforts in trying to translating Buddhist concepts into peace studies. Besides the

problems of modern interpretations and translations across cultures and languages, in practice, the Buddhist

monastic orders are often criticized as ingratiating themselves with authorities in exchange with advantages

(Galtung, 1993; Sivaraksa, 1999). A group aiming at liberating self and others could in this world turn out to be

part of the oppressive structure. Together with the fact that violence and conflicts still exist in countries where

Buddhism is the state or majority religion (Little, 1994), the relations between Buddhism, political authorities,

and nationalism as well as discrepancies between the Buddhist doctrine and its manifestations would need to be

carefully observed and further studied, if an integrated model of peace is to be realized.

CONCLUSION:

This paper examines the Buddha’s fundamental teachings that contribute to peace-building and peacekeeping in

the world. A Buddhist worldview based on the principle of dependent origination, its analysis of the causes of

conflicts and violence, and the open communication and participatory decision-making procedures in social

organizations, would inform and provide useful paths for theoretical approaches and research-based

applications in peace studies. In particular, the Buddhist observation and reflection techniques developed for

more than 2,500 years may start an “inner revolution” (Thurman, 1998) among warring people as well as peace

activists: enabling them to see more clearly the multilateral forces operating in the situation, and reexamining

the appropriateness of own causes and behaviors. The true value of nonviolence, compassion and altruism

advocated by Buddhism would also inspire all people on the path of peace. Given the will, the insight, the

perseverance, and the proactive creativity to realize the infinite possibilities latent in the dependently originated

reality, peace, from the Buddhist perspective, is realistic and achievable; and, aiming at making a more just and

humane world, peacemaking is an imminent, common responsibility mandated by the interdependent nature of

our existence and therefore to be shared by every one of us.

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IMPACT OF EURO ZONE CRISIS ON INDIAN GROWTH

(CONSUMPTION, INVESTMENT, NET EXPORTS AND

GOVERNMENT SPENDING)

SIDDHANT GOEL

Research Scholar, Delhi Public School Gurgaon, Sector-45

Gurgaon, India

ABSTRACT

The Financial crisis and the following Euro Zone crisis led to financial, banking and even political instability in Europe, US and rest of the world. The bursting of asset bubble created by the US Financial Crisis on the fall of Lehman Brothers ultimately led to the decreasing number of banks in the Europe and created a crisis. These points have been discussed in detail in the first two units. The reasons of the Euro Zone crisis, the shortcoming of the EMU and the sovereign debt Crisis are also dealt in detail. Finally, the paper concludes by presenting facts, figures and statistics as to how India encapsulated itself from the contagion effect of the crisis by analyzing the components of its growth. India has not shown significant plummets in any of the components and has maintained a healthy GDP throughout. Hence, it won’t be wrong in saying that it has mitigated the crisis pretty well and serves as a model for other Asian countries experiencing the contagion effects.

Keywords: Euro Zone Crisis, Greek Debt Crisis, Imbalances, Banking, Indian Growth



INTRODUCTION:

Roots of Euro Zone Crisis (Financial Crisis due to Real Estate Bubble):

Imbalances, which are global in nature owing to interlinks between word economies, are crises. The inter-links among the world economies lead to adversity as well as prosperity to all investors involved or immensely active in global financial markets. With no hints of doubt, one with even very little financial knowledge can claim that the markets across the globe have not yet recovered from the shocks that 2008-09 economic crisis had. It left the banking, corporate financial and government sectors in a great state of tumult and disorder.

Source: Wikipedia “World map showing real GDP growth rates for 2009. Here, the green color represents

growth whereas the brown color represents recession.”

The crisis saw its roots as the export oriented growth and enormous capital outflows and transactions coming from the OPEC and the East Asian nations. However, rather than causes, they were handmaidens of the crisis (Allington, McCombie and Pike, 2012). The blame is partly pointed at China, which with its low valued currency as compared to that of the US, invested heavilkeeping interest rates low and fuelling housing and asset bubble. But any East Asian or OPEC country cannot be out rightly blamed for it. Most of the countries were in desperate need to increase theboost their growth and sustain an exportThis “savings glut” reflected heavy capital inflows into the US, keeping interest rates low and leading to high credit capacity that financed household consumption and budgetventures in the US, these low rates of interest caused high levels of leverage in financial institutions (obligations and securities). These financed subprime housing loans precipitated the financial crisis ofinadequate regulation of financial institutions (Kaminsky and Reinhart, 2008).Consequently, the US was seeing a hike in real estate prices. This was precipitated by developing East Asian and oil-exporting countries running substantial curboom. And every boom is volatile and short lived. The greater the boom before the crisis, the greater is the impact of the crisis on the economy, negative impact that is. In case of the 2007by the collapse of Lehman Brothers, the US investment bank. This was followed by massive deleveraging by banks, unprecedented decline in prices and accumulation of nonperforming assets.In deleveraging, banks may liquidate and strengthen lending standards (increase collateral requirements). Rapid deterioration of loan quality and asset prices reduces the banks’ earning potential, often prompting firecollateral values are declining, an economywith broader implications for the real economy. Importantly, this effect is greater for economies in whicare more dependent on banks for their funding needs. All this called for an impending bust of the bubble of real estate and extreme growth just before the crisis.Asian countries were not the only catalysts in creating this boom and bust scenario favailability of cheap loans in the US. Privateconcentrated in highly leveraged financial institutions in advanced economies such as Germany, France, Switzerland, and the United Kingdomassets) the Gross Domestic Product (GDP) of individual nations. Almost half of all foreign holdings of U.S.



Roots of Euro Zone Crisis (Financial Crisis due to Real Estate Bubble):

Imbalances, which are global in nature owing to interlinks between word economies, are links among the world economies lead to adversity as well as prosperity to all investors

involved or immensely active in global financial markets. With no hints of doubt, one with even very little can claim that the markets across the globe have not yet recovered from the shocks that

09 economic crisis had. It left the banking, corporate financial and government sectors in a great state of

FIGURE 1:

World map showing real GDP growth rates for 2009. Here, the green color represents

growth whereas the brown color represents recession.”

The crisis saw its roots as the export oriented growth and enormous capital outflows and transactions coming OPEC and the East Asian nations. However, rather than causes, they were handmaidens of the crisis

(Allington, McCombie and Pike, 2012). The blame is partly pointed at China, which with its low valued currency as compared to that of the US, invested heavily into the US Treasury bonds, increasing capital inflows, keeping interest rates low and fuelling housing and asset bubble. But any East Asian or OPEC country cannot be out rightly blamed for it. Most of the countries were in desperate need to increase theboost their growth and sustain an export-led path of growth. This “savings glut” reflected heavy capital inflows into the US, keeping interest rates low and leading to high credit capacity that financed household consumption and budget deficit. Due to low levels of real investment ventures in the US, these low rates of interest caused high levels of leverage in financial institutions (obligations and securities). These financed subprime housing loans precipitated the financial crisis ofinadequate regulation of financial institutions (Kaminsky and Reinhart, 2008). Consequently, the US was seeing a hike in real estate prices. This was precipitated by developing East Asian

exporting countries running substantial current account surpluses. The cheap credit fueled the asset price boom. And every boom is volatile and short lived. The greater the boom before the crisis, the greater is the impact of the crisis on the economy, negative impact that is. In case of the 2007-08 crisis, the bust was triggered by the collapse of Lehman Brothers, the US investment bank. This was followed by massive deleveraging by banks, unprecedented decline in prices and accumulation of nonperforming assets. In deleveraging, banks may liquidate existing assets, callback existing lines of credit, refuse to extend loans, and strengthen lending standards (increase collateral requirements). Rapid deterioration of loan quality and asset prices reduces the banks’ earning potential, often prompting fire sales of assets. At times during which collateral values are declining, an economy-wide process of deleveraging can exacerbate the credit contraction with broader implications for the real economy. Importantly, this effect is greater for economies in whicare more dependent on banks for their funding needs. All this called for an impending bust of the bubble of real estate and extreme growth just before the crisis. Asian countries were not the only catalysts in creating this boom and bust scenario favailability of cheap loans in the US. Private-label securities and other holdings of U.S. “toxic” assets were concentrated in highly leveraged financial institutions in advanced economies such as Germany, France,

the United Kingdom— in short, the global European banks, banks of almost as large as (in assets) the Gross Domestic Product (GDP) of individual nations. Almost half of all foreign holdings of U.S.

3145, Print: ISSN 2319-5789


Imbalances, which are global in nature owing to interlinks between word economies, are signs of the imminent links among the world economies lead to adversity as well as prosperity to all investors

involved or immensely active in global financial markets. With no hints of doubt, one with even very little can claim that the markets across the globe have not yet recovered from the shocks that

09 economic crisis had. It left the banking, corporate financial and government sectors in a great state of

World map showing real GDP growth rates for 2009. Here, the green color represents

The crisis saw its roots as the export oriented growth and enormous capital outflows and transactions coming OPEC and the East Asian nations. However, rather than causes, they were handmaidens of the crisis

(Allington, McCombie and Pike, 2012). The blame is partly pointed at China, which with its low valued y into the US Treasury bonds, increasing capital inflows,

keeping interest rates low and fuelling housing and asset bubble. But any East Asian or OPEC country cannot be out rightly blamed for it. Most of the countries were in desperate need to increase their foreign reserves,

This “savings glut” reflected heavy capital inflows into the US, keeping interest rates low and leading to high deficit. Due to low levels of real investment

ventures in the US, these low rates of interest caused high levels of leverage in financial institutions (obligations and securities). These financed subprime housing loans precipitated the financial crisis of 2007 because of

Consequently, the US was seeing a hike in real estate prices. This was precipitated by developing East Asian rent account surpluses. The cheap credit fueled the asset price

boom. And every boom is volatile and short lived. The greater the boom before the crisis, the greater is the 8 crisis, the bust was triggered

by the collapse of Lehman Brothers, the US investment bank. This was followed by massive deleveraging by

existing assets, callback existing lines of credit, refuse to extend loans, and strengthen lending standards (increase collateral requirements). Rapid deterioration of loan quality and

sales of assets. At times during which wide process of deleveraging can exacerbate the credit contraction

with broader implications for the real economy. Importantly, this effect is greater for economies in which firms are more dependent on banks for their funding needs. All this called for an impending bust of the bubble of real

Asian countries were not the only catalysts in creating this boom and bust scenario for real estate assets and label securities and other holdings of U.S. “toxic” assets were

concentrated in highly leveraged financial institutions in advanced economies such as Germany, France, in short, the global European banks, banks of almost as large as (in

assets) the Gross Domestic Product (GDP) of individual nations. Almost half of all foreign holdings of U.S.



securities immediately before the crisis were held in Europe. This may be due to the reasons that the monetary policy in US allowed lower funding costs, European banks were in a position of high risk of lending (from Basel-II policy) and regulatory structure offered higher leverage. By mid-2008, just before the collapse of Lehman Brothers, over 40 percent of the assets of U.S. prime money market funds were short-term obligations of foreign banks, with obligations of global European banks representing the largest share (Baba, McCauley and Ramaswamy, 2009). Noeth and Sengupta (2012) argue that these European banks, from net recipients of capital till 2000 became net suppliers of capital to the US after 2000. These motivations to expand balance sheets and increase leverage are suboptimal in the long run and can cause risks for both the bank and the financial system.

FIGURE 2:

However US also shares this blame, for the lax monetary policy of the US contributed to the house price contributed to increased consumption, house price bubble and widened current account deficit. The U.S. current account deficit rose as a percentage of GDP from a relatively modest $125 billion (1.5 percent of GDP) in 1996 to $800 billion in 2006 (about 6 percent of GDP). Around the same time, there was a significant easing of credit conditions while the United States enjoyed an unprecedented boom in the price of real estate. Despite the heavy capital inflows into the US from investors across the globe, only one third of the inflow money was used to finance the current account deficit. Slightly tighter monetary policy and increment in short term lending rates were to be implemented, if US were to achieve a balance between reducing its current account deficit and increasing consumption and expenditure to boost its growth. It is therefore logical to assume that faulty monetary policy with poor regulation on the US’s part was the cause of the subprime crisis and imminent crises. The US, engulfed in its twin crises, still holds capital financed by the ‘trade surplus’ countries. Subprime crisis had a negative impact on the debt levels of economies. To increase their current debt, these economies had to offer higher premiums. Business closures and layoffs became regular. Recovery is occurring slowly. Yet a sovereign debt crisis stands in front of Europe. Also, the US faces budget deficit and crisis and Europe faces sovereign debt crises, both of which have its origins from the contagion effects of the subprime crisis. EURO ZONE CRISIS:

The Lehman Brothers failed in 2008, which led to a fast spreading contagion to the US economies and those of foreign countries. The economic woes are especially severe in the Euro Zone, where countries battle not only an economic recession, but also an asset price deflation and a burgeoning debt crisis. The growing fear of bad debt and quality of loans has further exacerbated the financial woes of Europe. This has tarnished the credibility of central banks and government banks of Europe and it is not tough for the people to see the poor quality of capital, although concrete statistical evidence is absent. However the crisis has made one thing concrete: the Euro Zone is not an Optimal Currency Area (OCA). The durability, stability and abundance of Europe are being jeopardized by the crisis. European banks have invested heavily in the US, and since European banks play a pivotal role in the overall stability of the union, the transatlantic bank crisis has affected Europe adversely. The consolidation in Euro Zone, US and UK has created more problems as the overall number of banks has decreased in the OECD countries. It both contributes to future instability and undermining of competitiveness in the financial sector. As



per Welfens, 2011, “The Transatlantic Banking Crisis has strongly raised debt-GDP ratios in many OECD countries and this is undermining the economic recovery in both Europe and US.” Hence the role of banking sector has never been so important. Tracing the origins of the current crisis, one can easily notice that a lot of highly complex factors, developments and fiscal indiscipline among the member nations have contributed to aggravating the current debt crisis. As per Lewis, 2011, ” Prominent among them include globalization of finance, availability of easy credit, high-risk lending and borrowing practices, international trade imbalances, real-estate bubbles, fiscal policy choices related to government revenues and expenses, approaches used by nations to bail out troubled banking industries and private bondholders, assuming private debt burdens or socializing losses.

REASONS OF THE CRISIS IN EURO ZONE:

1. Fiscal Policy: The European Monetary Union conducts its economics very uniquely. It binds all the member countries to a single monetary policy. Thus, these countries alone have no power to decide the rate of exchange or change money supply. However, the fiscal policy, although governed by the Stability Growth Pact (SGP), is executed independently. Therefore at country level, the fiscal policy becomes important. Spillovers are also caused for other economies because of the independence given to the countries in exercising the fiscal policy. “The proper fiscal policy implementation by the respective national government thus becomes convoluted and can be considered a game of non-cooperative behavior” (Costa, 2010). This means that if the implementation of a particular policy stimulates a short-run growth for a particular member economy, it might even cause a negative result (spillover) for another one. The Stability Growth Pact, to a certain extent, tries to put limits and restrictions on the members’ deficits (up to 3%) and debt-GDP ratio (up to 60%). However, the indiscipline in its implementation and its lack of enforcement have owed to its violation by several members.

2. Easy availability of credit and high risk borrowing and lending:

European banks other than just the US monetary structure also played a significant role in financing credit and asset price booms. Their increasing need to leverage, expand balance sheets and generate more leverage from less capital caused them to gravitate toward assets that carried low risk and attractive returns. Thus, they invested heavily in US securities and in some countries of the Euro Zone, subsequently giving rise to the real estate price bubble in many countries of Euro Zone like Spain and Ireland as well as the US. There were two main reasons for high risk taking. The first was asset price and exchange rate appreciation, which improves balance sheets of households and firms, thereby improving not just their creditworthiness but also the loan quality of the bank portfolio. The other was the introduction of the euro, which reduced risk premia not just on sovereign debt but also on private debt in countries with weaker growth and weaker banking systems. In turn, the reduced risk premia can promote more risk taking and lending by banks because of perceived improvements in loan portfolios (Borio and Zhu, 2008; Bruno and Shin, 2012b). Empirical studies now validate the fact that these high risk lending practices led to housing prices boom and careless monetary policies due to easy availability of cheap credit at low interest rates. 3. Poor Economic Performance:

Moreover, since the onset of the crisis, the growth in European economies has not been very high. Developed European powers like Germany and France are growing at sluggish pace whereas less prosperous nations are under tremendous debt and deficit. Poor economic performance leads to nonperforming loans and lower tax revenues. Nonperforming loans shrink bank balance sheets, which in turn has real effects on economic growth through the balance sheet channel (Bernanke and Gertler, 1995). In extreme cases, nonperforming loans can end in bank failures, leading to bailouts by the respective sovereigns (in the form of recapitalization of existing banks, redemptions on publicly funded deposit insurance, or both, Reinhart and Rogoff, 2009).

4. Large Bailouts:

After being exposed to speculative attack, Greece was given many aids, of which was a notorious 750 billion euro aid given by International Monetary Fund, European Commission and member states. Also, German and French banks have offered numerous bailouts and have bought Greek securities, indicating their interest in keeping the EMU and single currency system intact. Large bailouts coupled with lower tax revenues put extreme stress on public finances. In turn, a higher debt burden reduced economic growth because of weaker incentives (higher impending tax rates) or reduced public investment (Reinhart and Rogoff, 2010 and 2012). Moreover, if sovereigns default on their debt, it can affect the health of financial institutions with sizable sovereign debt holdings. As per research, bailouts created more pressure on sovereign debt service.



Also, the countries offering bailouts to distressed countries place themselves at risk too and the central banks of those countries face pressure as they use their public money to pull the distressed countries out of the crisis. SOVEREIGN DEBT CRISIS IN GREECE:

The Transatlantic Banking Crisis (2007- 2009) brought in tremors in OECD countries. Originating as Subprime crisis due to poorly managed financial markets in US, it has spread as a financial and banking crisis in West Europe. The twin crises have increased Greece’s debt-GDP ratio and have created a plot for an impending banking crisis. The net consequence- interest rates have to increase, tax cuts have to be lowered-stimulating inflation in Europe. It was in 1981 that Greece joined the EU in order to kick start some complementary reforms. It had to do this because of its prior reluctance to practice supply side economics and extravagant public expenditure, leading to high debts. Since Greece had been following an upward trend in debt and deficit, it had to increase its interest rates and withdraw tax cuts and subsidies to increase the Euros in its coffers (Cobb-Douglas Production function). Consequently Greece had a high risk premium attached to it, making it difficult for the government to obtain high funding. Hence, a reduction in fiscal revenues was seen due to the depreciation in value of real estate markets’ newly burst asset bubbles. Although rapid growth of household debt over a long period ensured gains for domestic demand, it led to massive losses when it was interrupted. Greece spent extravagantly on government workforce and Olympics, 2004 increasing its expenditure and thereby pressurizing itself with more debt burden. Lowering in revenues of the government and increment in its expenditures between 2008 and 2010 led to further problem. Credit expansion was nullified by the financial and sovereign debt crisis, leading to rapid growth of household debt. “This development caused a shift of the net injection contributed by household debt to domestic demand from the highly positive levels experienced up to then to levels considerably below zero” (Athanassiou,2012). The rate of credit expansion in Greece was 31% in 2005, which dropped to 12.8% in 2008, after which it was brought to halt by prevailing crises and high debt levels of Greece. The decline of domestic demand of Greece resulted in the attenuation of private consumption and gross fixed capital formation. Eventually, this main growth driver till 2008 became Greece’s weakening factor after the crisis. “From 2009 onwards, a persistent severe contraction in domestic demand led the economy into a deep recession.” – ijbssnet. Because of the negative net injection from the household debt, domestic demand and economic growth have to face severe challenges in Greece. The problems arising from the crisis are not just concentrated in the economics or finances of the nation. Unemployment and fall in production have acted as catalysts in creating social unrest among people, with many strikes and rallies becoming the order of the day. And due to the inter-connectedness of the economies, negative effect in a country’s capital market, if any, is likely to reach other countries as well. Hence any negative policy change or announcement in Greece, at this moment, can be disastrous not only on Greece but also for the other countries that have been exposed to Greek markets.

FIGURE 3:



Private capital flight away from Greece and into the more developed, stable and powerful country in Europe has been a chief cause of concern for Greece. This is because it causes imbalances (Target2) and leads to shifting of capital from one nation to another, pushing Greece (which is already heavily indebted) in a situation of liability. And that too is happening at the time of ongoing crisis in Greece. Coupled with high debt and deficit of public sector, Greece is now in a position to face more outflows from its economy, at a time when it needs them the most, due to such imbalances. The TARGET 2 payment system reflects the bank funding provided to these countries. This means that these countries are all at some level borrowing from other Euro Zone countries to finance their investments. Interestingly, it appears that the use of borrowings from the ECB as reflected in their TARGET 2 liabilities is a precursor of more formalized assistance from the IMF or ECB. Developed countries enjoy many benefits over the developing ones. They can raise debts more efficiently when placed in the same debt situation. “Consequently, poorer economies and/or economies with high levels of accumulated past debt become much more susceptible to recessionary periods because of decreased capacity to implement fiscal policy” (Costa, 2010). In mid-term, the distressed economies, especially that of Greece and Ireland, have to increase their growth, trade surpluses, savings and liquidity in order to deal with the crisis. With the implementation of proper policies, enough austerity measures and bailouts from the IMF and Euro Zone, it is expected that the Greek economy might resurface from the crisis of sovereign debt. Till then, it has to drastically cut down on its expenditures and deal with the deficit at national level. Privatization will be the best method to reduce debt and deficit. That way, the government will be able to release assets and garner the liquidity needed to finance the countries past heavy expenditure. At the same time, decentralization will allow the sale or revamp of nonperforming public enterprises that are operating in deep losses just to provide employment to the masses and facilities at minimal rates. Leaving the zone also does not serve Greece its needful purpose as it may lead to either collapse of the economy or social unrests in it. It won’t be beneficial for the other countries as well as it would leave the Euro Zone in a crumbling state, and indicate the failure of its ‘unifying’ undertaking. The Greek crisis, in the long run, can trigger a domino effect like the Lehmann Brother collapse and can be the root of an imminent banking crisis. This is also possible as Euro Zone is not an Optimum Currency Area and the EU policy makers consider it an illiquidity phenomenon rather than an insolvency phenomenon, prohibiting capital transfers (Arestis and Karakitsos, 2012). However the entire crisis and broader Euro Zone crisis could have been mitigated if the crisis management of the Euro countries and EU were better and more responsive.

CONTAGION EFFECTS DUE TO THE CRISIS:

The Greek crisis is most likely to influence markets in other Euro Zone states and the US. Although, its impacts will not be confined to only these markets and will be experienced by other markets as well, less severely though. This impact may be due to the inter-connectedness of the economies and exposure of Euro Zone and American economies to almost all the other ones. A credit crisis would be manifested as a shortage of liquidity, but the real cause would be bank credit risk, which would infect simultaneously the interbank, repo, and certificates of deposits markets. It would then infect the credit default swaps market and money market funds markets. Also earlier, a risk on the banks was more or less random, but now it has become more systematic due to excessive liquidity in markets (Arestis and Karakitsos, 2012). The underlying rationale is that excessive liquidity is more likely to create bubbles in asset values (stocks, commodities, shipping, residential, and commercial property) than inflation in goods and services (consumer price index [CPI]). These asset bubbles invariably implode when interest rates rise. Central banks ultimately hike interest rates to combat CPI-inflation, and by doing so, they prick the bubble causing losses in the securitized financial loans that financed the bubble. Panic ensues because financial institutions are reluctant to lend to other banks for fear of obtaining as collateral the contaminated assets. The risk of a panic among market participants and consequently a run on the repo market is therefore systemic and not merely random. Unlike US, that follows a growth oriented budget deficit strategy, the Euro Zone has adopted neoliberal model of a monolithic control of inflation. Large budget deficits and high public debt are a threat to long-term inflation expectations as there is always the risk of monetizing the debt. Accordingly, the priority after the worst recession in living memory has been to curb budget deficits and public debts. For all the periphery countries this recipe has been a disaster, as it deepened the recession, while the marginal reduction in the budget deficit per unit of output loss has become significantly more costly.



The contagion effect of the crisis in US is very high due to cross-holding of bank assets. This risk is systematic due to excessive liquidity present in the market (about $20 trillion in US alone). A credit event, related to the Greek debt crisis, might spread to other periphery countries, triggering rising risk aversion in the EMU banking system, because it generates fear in the repo market that the collateral offered by the counterparty contains contaminated assets. Thus, rising risk aversion stems from perceived higher counterparty credit risk in the repo market. This translates into a haircut in the value offered as collateral, which in turn leads to a shortage of liquidity, thereby triggering fire sales in the highest grade securities and hence losses for financial institutions and the household sector. The problem is aggravated as credit risk pervades also the interbank and the certificates of deposits (CDs) market. Therefore, a credit crisis is manifested as a shortage of liquidity, but the cause is elevated credit risk. A banking crisis in the Euro Zone will first be reflected in widening of the Euribor–OIS spread, which might spill over to the Libor–OIS spread through cross-holdings of bank assets. Simultaneously rather than sequentially, it will also infect the CD and repo market, freezing all the markets that provide credit to the global financial system. The second channel of contagion is through risky assets. Rising risk aversion for risky assets would lead to a fall in the carry to risk ratio and consequently to soaring bank and household sector losses. Finally, from the banks and asset markets the crisis could spread to the corporate sector, resulting in widening credit spreads of corporate debt, thus curtailing business investment. Banks would restrict the availability of loans to companies and households and raise the cost of borrowing, thereby triggering a recession. (via Arestis and Karakitsos, 2012). The EMU is not an OCA (Optimum Currency Area) as labor mobility is hampered by language and cultural differences, while capital mobility is hindered by the lack of harmonized bureaucratic structure; capital transfers should have played a major role in defending the monetary union in its infancy. But the constitution of the European Union relegates the goal of full employment and growth to member governments, while at the same time imposes restrictions on the use of fiscal policy to achieve these targets. The combination of the types of policies pursued in the European Union with its peculiar monetary union structure implies that a debt crisis (sovereign or banking) in the periphery was an accident waiting to happen.

FIGURE 4

IMPACT ON INDIAN GROWTH:

The inter-connectedness has no doubt caused large scale contagion phenomenon, whereby a small shock is able to disrupt the economies of the other countries. The debt in Greece led to the contagion effects in Europe and also in countries like India and China. “The sovereign debt crisis has created enormous anguish in the zone and emergency measures have been used in order to prevent its breakdown” (Daniel, 2012). According to a study conducted by Elango Rengasamy, 2012, the stock markets of BRICS countries showed very little slowdown as a result of the numerous global crises, including Euro Zone and Sovereign Debt Crises. Their stock markets, core components of their capital markets, remained to a large extent unaffected by the global crises and were encapsulated from their contagion effects. India, among BRICS, yielded second highest



mean share price returns (0.66%) showing that it kept itself at a safe distance from the crises. None of the BRICS countries yielded negative returns. As far as volatility is concerned, India recorded the second lowest standard deviation in the research, showing the stability of its share price returns. India is also a great destination for FDI due to such robust economic stability and conditions. This result can hence be extended to other domains, other than the stock market and it can be confidently claimed that India has encapsulated its growth, stability, social and political groups and financial institutions from the contagion effects of the sovereign debt crisis, also engulfing banking sector. Given that economically, India is one of Greece's largest debt creditors with Greece owing Indian banks over €60 billion (Wikipedia, India-Greece Relations); India has done pretty well in order to keep away from contagion, debt or bad money exposure. It is also estimated that India will dominate the supply of manufactured goods along with China by 2027. “The economy of India is the ninth-largest in the world by nominal GDP and the third-largest by purchasing power parity (PPP). India's GDP grew by 9.3% in 2010–11; however, the growth rate has nearly halved in just three years.” – Wikipedia. The Indian economy seems very promising and is capable of having one of the healthiest GDP in the near future. The net sum of consumption, investment, government spending and exports constitute the GDP. The more these components are, the more is the GDP of the nation. Therefore, it becomes very essential to study these components of the economy individually in order to truly comprehend the impact of Euro Zone crisis on the Indian economy which are as follows:

1. Consumption:

India's Per Capita Income has tripled from Rs. 19,040 in 2002–03 to Rs. 53,331 in 2010–11, averaging 13.7% growth over these eight years peaking 15.6% in 2010–11; however growth in the inflation adjusted Per capita income of the nation slowed to 5.6% in 2010–11, down from 6.4% in the previous year and as of 2010, according to World Bank statistics, about 400 million people in India, as compared to 1.29 billion people worldwide, live on less than $1.25 (PPP) per day. These are individual or household consumption levels. Compared to 2001 household consumption patterns of India, consumption trends as per the Census of 2011 represent moderate to significant improvements. As per the 12th Indian five year plan, the GDP is set to grow at a healthy rate, accompanied by a rise in per capita income. Middle class’s composition in the population will increase manifold till 2025, making it the predominant catalyst in increasing the money the consumers spend (it will account for up to 59 % of the nation’s consumption). The real household disposable income has more than doubled since 1985. With the rise in income, consumption patterns have changed and a new middle class has emerged, which is growing at a fast pace. The economic growth, changes in tastes and preferences and urbanization has resulted in changing consumption pattern away from traditional commodities to processed and high value commodities (Murty, 2000; Meenakshi, 1996; Rao, 2000). The high growth performance of Indian economy is expected to result in higher household expenditures. This is possible only if different classes of Indian society shared the growth of wealth and if a significant part of it is allocated towards consumption expenditure. Seeing this, it is highly unexpected that a Euro Zone crisis may impact Indian consumption patterns, which have been on a constant rise.Any shocks or crises in the Euro Zone are not that critical or harmful for the consumption in Indian economy in the long run. However in the short run, it can alter commodity prices for the negative and can afflict a little damage on the consumption.

Table 1: Growth in MPCEURP at current and constant prices since 1987-88, all-India (Source NSS 66th round Type-2 survey)

Characteristic 1987-88 1993-94 2004-05 2009-10

MPCE: rural (Rs.): current prices 158.10 281.40 558.78 927.70

Price deflator for rural sector* 100 176 319 494

MPCE: rural (Rs.): base 1987-88 158.10 159.89 175.17 187.79

MPCE: urban (Rs.): current prices 249.92 458.04 1052.36 1785.81

Price deflator for urban sector# 100 173 338 503

MPCE: urban (Rs.): base 1987-88 249.92 264.76 311.35 355.03

*derived from CPI for agricultural laborers with base 1986-87=100

#derived from CPI for urban non-manual employees with base 1984-85=100

*MPCEURP - Monthly per capita consumption expenditure (uniform reference period)



Table 1 clearly shows that Indian household consumption in urban and rural areas has been increasing since 1987-88.

FIGURE 5

2. Investment:

In economic theory or in macroeconomics, non-residential fixed investment is the amount purchased per unit time of goods which are not consumed but are to be used for future production (i.e. capital). Examples include railroad or factory construction. Investment in human capital includes costs of additional schooling or on-the-job training. Inventory investment is the accumulation of goods inventories; it can be positive or negative, and it can be intended or unintended. In measures of national income and output, "gross investment" (represented by the variable ‘I’) is a component of gross domestic product (GDP). Indian Investment (gross fixed): 30% of GDP (2012 EST.) (Source- CIA World Fact book

FIGURE 6

Via CIA World Fact book

FIGURE 7:

Via CIA Fact book



According to figure 7, India’s gross investment stood at 29.9% of the GDP in 2012 and about 39% in 2008. Hence, it is easy to say that India has invested heavily (top 30 countries). India’s investment levels have seen some yet not great falls during the Euro Zone crisis period. However, it is incorrect to say that the drop in investment levels is due to the Euro Zone crisis, it might have played a small role in it.

3. Government Spending:

India’s total expected government spending for the financial year 2013 and past expenditures have been provided in figure 8. Indian spending hovers constantly around $302 million. India thus has a 27.2% expenditure-GDP ratio. India has a balanced public expenditure, for high government spending usually equates to large debt and high taxes and low government spending leads to compromises in infrastructure, human resource development and development. India has a healthy spending rate, which hasn’t been severely affected due to the Euro Zone crisis as per the data.

FIGURE 8

Via Union Budget and Economic Survey of India

FIGURE 9

Via Wikipedia

4. Net Exports:

“India’s exports grew about 194% from 2005-06 to 2011-12, increasing from $103 billion to $303 billion. INDIA’S FOREIGN TRADE: JULY, 2013” (commerce.nic.in) a. EXPORTS (re-exports included):

Exports during July, 2013 were estimated at USD 25834.46 million, approximately 11.64 per cent higher in terms of Dollar than the level of USD 23140.43 million during July, 2012 and cumulative value of exports for the period April-July 2013 -14 was USD 98290.13 million as against USD 96632.20 million , registering a growth of 1.72 per cent in terms of Dollar. b. Imports:

Imports during July, 2013 were valued at USD 38102.56 million representing a negative growth of 6.20 per cent in terms of Dollar and over the level of imports valued at USD 40619.45 million in July, 2012 and



cumulative value of imports for the period April-July, 2013-14 was USD 160738.29 million as against USD 156327.95 million registering a growth of 2.82 per cent in terms of Dollar. Although, the Indian balance of payments stands at a deficit, Indian exports have been constantly increasing, even after the crisis period. This shows that the crisis had a minimal impact on the Indian exports too. However since India is a big importer, it stood at a risk of exposure to the crisis.

FIGURE 10

FIGURE 11

But this also did not pose a problem for India as it has meager trade relationships with Greece and EU (as per figures 10 and 11) CONCLUSION:

The Euro Zone crisis has indeed been a cause of concern for the analysts and economists all over the world. It has impacted growth in Europe, US and other countries. However for India, it did not bring a period of extremely dampened growth. All the above-explained characteristics of a GDP, whose robustness is essential for a good growth rate, are very healthy for the Indian economy. The consumption pattern, investment levels, government spending and exports did not see a major downside during the crisis period and remained on a balanced, if not growth, trajectory. The Indian growth has successfully encapsulated itself from the Euro Zone crisis and it is not wrong to conclude given the above information that the Euro Zone crisis has had no significant negative impact on either the GDP or the fast growth rate experienced by India.

REFERENCES:

1. Kaminsky, G.L., and Reinhart, C.M. “The Twin Crises: The Causes of Banking and Balance of Payments Problems.” American Economic Review, 2008, 89 (3), 473–500.

2. Shambaugh, Jay C. “The Euro’s Three Crises.” Brookings Papers on Economic Activity, March 12, 2012. 3. Bernanke, Ben S. and Gertler, Mark. “Inside the Black Box: The Credit Channel of Monetary Policy

Transmission.”Journal of Economic Perspectives, 1995, 9(4), pp. 27-48. 4. Reinhart, Carmen M.; Reinhart, Vincent R. and Rogoff, Kenneth S. “Debt Overhangs: Past and Present.”

NBER Working Paper No. 18015, National Bureau of Economic Research, 2012.



5. Reinhart, Carmen M. and Rogoff, Kenneth S. This Time Is Different: Eight Centuries of Financial Folly. Princeton, NJ: Princeton University Press, 2009.

6. Reinhart, Carmen M. and Rogoff, Kenneth S. “Growth in a Time of Debt.” American Economic Review, 2010, 100(2), pp. 573-78.

7. Baba, Naohiko; McCauley, Robert N. and Ramaswamy, Srichander. “U.S. Dollar Money Market Funds and Non-U.S.Banks.” BIS Quarterly Review, March 2009, pp. 65-81.

8. Borio, Claudio and Zhu, Haibin. “Capital Regulation, Risk-Taking and Monetary Policy: A Missing Link in the Transmission Mechanism?” BIS Working Paper No. 268, Bank for International Settlements, 2008.

9. De Grauwe, P. (2003). Economics of monetary union.7thedition.Oxford press. 10. De Grauwe, P. (2011). Joint issue of Eurobonds. CESifo Forum 2/2011. 11. De Grauwe, P. & Moesen, W. (2009). Gains for all: A proposal for a common Euro bond. Inter

Economics University of Leuven, May /June. 12. Sengupta, R., and Tam, Y.M. “The LIBOR–OIS Spread as a Summary Indicator.” Economic Synopses,

2008, 25, 1–2 via Arestis and Karakitsos, 2012.

13. Michel Morisset∗ and Pramod Kumar- TRENDS AND PATTERN OF CONSUMPTION OF VALUE ADDED FOODS IN INDIA

14. Meenakshi, J.V. (1996). How important are Changes in Taste? A State-Level Analysis of Demand. Economic and Political Weekly, December 14, 1996.

15. Murty, K.N. (2000). Changes in Taste and Demand Patten for Cereals: Implication for Food Security in Semi-Arid Tropical India, Agricultural Economic Research Review, Vol 13(1):25-51.

16. Murthy, K.N. (2000). Changes in Taste and Demand Pattern for Cereals: Implication for Food Security in Semi-Arid Tropical India, Agricultural Economics Research Review, Vol 13(1):Pp25-51.

17. Rao, C.H.H. (2000), Declining Demand for Foodgrains in Rural India: Causes and Implications, Economic and Political Weekly, January 22, Pages-201-206.

18. LEWIS, M., (2011) Boomerang – Travels in the New Third World. Norton ISBN 978-0-393-08181-7

WEBSITES:

19. JAMAL, I. H., (2011) “Sovereign Credit Risk in the Euro Zone”, World Economics, Vol. 13, No. 1, 2012, Electronic copy available at: http://ssrn.com/abstract=1811789

20. http://en.wikipedia.org/wiki/Financial_crisis_of_2007%E2%80%9308# 21. http://www.boaoreview.com/report-2012//2012/1125/38.html 22. http://data.gov.in/dataset/household-consumer-expenditure-66th-round-0 23. http://finmin.nic.in/the_ministry/dept_eco_affairs/capital_market_div/India_Factbook.pdf 24. http://indiabudget.nic.in/budget.asp 25. http://commerce.nic.in 26. Figure 3- via Athanassiou 2012 27. FIGURES 2 and 4- via Noeth and Sengupta (2012)

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THE INTERNATIONAL DEBT

CRISIS AND ITS IMPACT ON INDIA

MS. D. ANNETTE CHRISTINAL,

M.Com., M.Phil., NET.,(Ph.D)

Department of Commerce (Self-Financed Section), Bishop Heber College,

Tiruchirapalli, Tamilnadu. India

S. DINESH,

Department of Commerce (Self-Financed Section), Bishop Heber College,

Tiruchirapalli, Tamilnadu. India

ABSTRACT

The 1990s and early part of this century were characterized by a number of currency and financial crises. The turmoil started with major speculative attacks against the European Monetary System in 1992-93 which led to devaluations of the Pound-Sterling and the Italian Lira, followed by the Mexican crisis of December 1994; then, starting with the Thai Bhat devaluation on July 1997, the East-Asian financial crisis started. The Asian crisis was characterized by major economic and financial turmoil in many of the East-Asian economies with large falls in the values of their currencies, stock markets and property prices. The Asian financial crisis was swiftly followed by other crises in Russia (Collapse of long-term hedge funds in August 1998), Brazil (Devaluation and gradual flotation of the Brazilian Real, leading to a quick depreciation of a further 35% in January 1999), Turkey (Banking crisis leading to the flotation of the Turkish Lira in January 2001) and Argentina (Declaration of default on its external debt and abandonment of its currency board in December 2001, leading toa dramatic fall in the value of the Argentinean Peso to a low of 3.75 Pesos per Dollar by the end of October 2002). These periodic crises have stimulated a great deal of theoretical and empirical literature. This paper focuses attention on these international crises, including the East-Asian financial crisis, specifically the Indian financial crisis, which is one of the most significant financial events to occur for the past 40 years. Keywords: Finance, Currency, Debt-Crisis, Economy, Exchange



INTRODUCTION:

The early 1920s was a period of great wealth and excess. But after a pre-emptive speculation and attackon its stock market, the U. S.saw the biggest financial crunch in history. The Wall Street Crash of 1929, commonly referred to as “Black Tuesday”, had devastating effects on many investors and on the country as a whole. As Richard Salsman notes, “Anyone who bought stocks in mid-1929 and held onto them saw most of his or her adult life pass by before getting back to even.”The Great Depression soon followed. The European crisis and the East-Asian crisis from the early 1990s to this day, follow similar patterns.

EARLY STAGES OF THE LATIN-AMERICAN AND EUROPEAN CRISES:

The origins of the debt crisis date back to the oil price shock following Egypt-Israel war of October 1973. The quadrupling of the oil prices was particularly harmful for non-oil-producing developing countries, which experienced an enormous increase in their import expenditure. On top of this, there was a recession in developed countries, curtailing their export earnings. The terms of trade index of oil-importing developing countries severely deteriorated during this period, from 100 to 40. On 12th August 1982, the Mexican government announced that it could not meet its forthcoming debt repayments on its $80 billion of outstanding debt to international banks. This was the first sign of the international debt crisis. Soon after the Mexican announcement, a number of other developing countries announced that they too were facing severe difficulty in meeting forthcoming repayments. Throughout the 1980s and 1990s and the early part of the new century the problems faced by the developing countries in servicing their debts has been one of the major international policy issues, and granting of debt relief has recently also become a major policy issue. The concentration of commercial bank loans in Mexico, Argentina, Brazil and Venezuela led to fear that if any of them defaulted, this would undermine the banks that lent to them, especially the U.S. banks that had massive exposures, and threaten an international financial crisis. The resulting knock-on effects would push the world into a major economic recession. Meanwhile, economies in Asia, such as Japan, China and India faced a wholly different kind of financial crisis, albeit connected to the Latin-American and European crises to some extent. A steep fall in the value of the Asian currencies foreshadowed a major financial crisis.

FALL OF THE INDIAN RUPEE:

On May 22, 2013, in his address to Congress, Ben Bernanke, Chairman, U. S. Federal Reserve, mentioned that “the end of the U. S. recession is in sight” and that the Federal Reserve could possibly downsize its $85 Billion per month bond-buying program (Otherwise referred to as Quantitative Easing) “in the next few meetings,” if the economy sees enough improvement.In such a situation, the interest rates for local investments and deposits will increase. In anticipation of exactly this, investors who had left the U. S. on account of the economic meltdown in 2008 returned huge amounts of investment back to the U. S. In spite of countries like India and China liberalizing their trading policies, major firms kept pulling back their investments from the respective nations. But even before this recent crisis (May 2013), the value of the Indian Rupee had started sliding down. As on July 12th 2011, the value of Indian Rupee against one American Dollar was 44. It has deteriorated almost 33% in 2 years; standing at 65 in 2013 (A record low of 68 was reached on August 28 2013).The famous financial analysing firm, Standard Poor, placed a check on India’s external credibility.India’s Foreign Exchange Reserve was also deteriorating during this period, severely hurting the chances of any repair. REASONS FOR THE DECLINE: FOREIGN AND DOMESTIC:

Conventional financial analysts of India had thus far been blaming a rebound from the economic crisis of the U. S. and Latin American countries as the major cause of a financial crisis in India. On August 2013, the Indian Financial Ministry accepted that there were some domestic factors for the downfall of the Indian Rupee. At that time, it was apparent that India’s Fiscal and Current Account Deficit were skyrocketing. As on 27th August 2013, India’s Foreign Debt amounted to $400 Billion; its Servicing of Debt (Interest on borrowed loans) was 60% of the total Foreign Exchange Reserve; its Current Account Deficit was $88 Billion. To put it in a nutshell, the Foreign Exchange Reserve at that time was $270 Billion and its liability was $650 Billion. Although the liability was not immediate, there was a looming threat of a financial crisis, which was already reflected in the fall of the Indian Rupee.



In 1991, India faced a similar crisis. On May 1991, the Reserve Bank of India sold 20 tons and pledged 46.91 tons of Gold from its Gold Reserve with the Bank of England and Japan. The Current Account Deficit at that time was 2.5% of GDP. Now, it is 4.8%, meaning that India’s Current Account Deficit has almost doubled in a matter of 20 years. Although there are minor improvement in statistics like Import Handling Period (6 Weeks in 1991, 6 Months in 2013), Central Government Debt against GDP (60% in 1991, 20% in 2013), India’s Debt Servicing is 35.09% now, as opposed to 21% in 1991. Another important reason for the existence and prolonging of the crisis is the drawing of huge debts by huge multinational firms in India. 100 huge Corporates of India put together, have borrowed an amount of $140 Billion from foreign sources. Furthermore, almost 70% of commercial loans borrowed inside India are accounted to these 100 firms. As apparent as it is, these Corporates will pay back the debts of foreign sources first, thus postponing the repayment of local loans. This creates a huge gap in the lending-borrowing cycle of banks all around India, leading to devaluation in the currency. The threat of a financial crisis will force the banks to recover these loans from these Corporates within a year, but the damage has been done already. The third and final reason for the crisis is the increasing gap between Imports and Exports (Otherwise called as Current Account Deficit). Foreign investment was introduced in 1991 under Foreign Exchange Management Act (FEMA), driven by then Finance Minister Manmohan Singh, who went on and became the Prime Minister of India, following which a lot of Import rules were liberalized. Around 3320 products, which were previously banned for Import into India (On account of already being produced abundantly in India), were granted Import access. Starting from a baseline of less than $1 billion in 1990, a 2012 UNCTAD survey projected India as the second most important FDI destination (after China) for transnational corporations. The World Trade Organisation and the World Bank were also behind this ‘reform’. It is to be noted that the U. S. holds a majority of the shares in these organizations (More voting power, more influence). This is reflected in the fact that the fall of the U. S. economy in 2008 was swiftly followed by easement in India’s Import policies, thanks to ‘suggestions’ from the World Trade Organization and World Bank. Following the U. S. crunch of 2008, a conference, "The Architecture of Asia: Financial Structure and An Emerging Economic System" was convened at the Bretton Woods on April 10, 2011 by Joseph Stiglitz. The panel consisted of two Indians, Dr. Yaga Venugopal Reddy and Prabha Patnaik. It is to be noted here that Dr. Yaga Venugopal Reddy is a key person for the stabilisation of India’s financial environment, even during times of a global turbulence. While trading policies had already been liberalized, Dr. Y. V. Reddy refused to liberalize India’s Capital Account.If India’s Capital Account had been liberalized, speculation on Foreign Exchange Value would have been very much possible. And during times of financial crisis like this, an increased gambling on the ground of Foreign Exchange would worsen the situation.

DEFAULT MODELS OF CURRENCY CRISIS:

Domestic Credit Reserves Exchange Rate



THE SOLUTION TO THE CRISIS:

John Keynes’ famous “The General Theory of Employment, Interest and Money” offers great suggestions to repair and redeem the financial condition of any affected country. The book not only defined single-handedly the terminology and shape of modern macroeconomics, but successfully revived the effects of The Great Depression of 1929 in many countries including the U. S. The Great Depression itself, notably, originated in the U. S. after a fall in the Stock Market prices in September 4, 1929. The phenomenon became worldwide news with the crash of the U. S. Stock Markets in October 29, 1929, referred to as “Black Tuesday”. It was by far the most devastating crisis the country had ever faced.John Keynes suggested that countries that had thus far adopted a Capitalist Model should adopt a Welfare State Model, to start redeeming the damaged economy. To gain something more out of that, he also suggested that the government pour money into development of the country’s infrastructure. New infrastructure projects like building of dams, railways tracks, official buildings etc., will increase employment opportunities around the country. More employment would lead to more income in the hands of the people, once people start earning wages, they tend to spend their newly earned money, followed by which various organizations will earn more profits as they start selling more and more goods. As the situation becomes stable, the government can slowly reduce the money being sent out into the economy. This very same measure is being followed by Ben Bernanke through his $85 Billion per month bond-buying project, which is an obvious attempt at stabilizing the U. S. economy (Implying that it is still in ruins). THE CURRENT INDIAN FINANCIAL SCENARIO:

India eased its FDI (Foreign Direct Investment) policies on 2008 and 2009. However it had negative impacts. Two Steel Giants, POSCO and ArcelorMittal withdrew their projects from India amounting to Rs. 30, 000 Crores and Rs. 50, 000 Crores respectively, which would have otherwise contributed to India’s GDP. Further, gross foreign investments of Rs. 18, 500 Crores in May 2009 and Rs. 44, 162 Crores in July 2009 were also redeemed. During this period of severe crisis, India’s GDP Growth Rate fell from a brisk 10% in 2008 to a meagre 3.2% in 2013. It is to be noted that the GDP Growth Rate of the U. S. was 2.7% before the crisis of 2008, negative during 2008 and has revived to around 1.6% in 2013. Following the Asian financial crisis, the BRICS (Brazil, Russia, India, China and South Africa) nations have met together the G20 union at St. Petersburg, Russia 5th September 2013. They decided that an exchange reserve fund created between the BRICS will stabilize the current financial crisis. China will contribute $41 billion, while Brazil, Russia and India will chip in with $18 billion each. South Africa, the smallest economy, will commit only $5 billion to the CRF (Currency Reserve Fund). In reality, China, the largest economy of the BRICS, along with Russia has continually rebuked India for its financial mess. It doesn't make sense for China to accept Rupee payment when its imports from India are much lower than its exports. Russia previously did not accept its debt repayment in Rupees. Iran is India’s only viable trading partner, but the U. S. government under Barack Obama has tried everything in its power to prevent Iran from exporting its goods, for reasons involving political undertones. India has also signed a swap agreement with Japan for an amount of $15 Billion, but that too will not be useful enough to redeem the effects of the crisis. CONCLUSION:

Raghuram Rajan, India’s newly appointed RBI Governor, has hiked the Repo Rate (The rate at which the RBI lends money to the commercial banks) to 7.5% in a desperate measure to prevent an inflation. As of Raghuram Rajan’s announcement, India’s NPAs (Non-Performing Assets) amounted to Rs. 1, 86, 000 Crores. On its part, India’s Finance Ministry on September 2013invoked Austerity Measures by announcing a ban on five-star venues for government meetings; foreign locations for conferences, exhibitions and seminars; and executive class airline tickets for officials. An Indian Finance Ministry circular on September 2013 pressed officials to keep the size of delegations going abroad at an “absolute minimum.” It also banned recruitment for central government posts for one year and the purchase of new vehicles. “Such measures are intended at promoting fiscal discipline, without restricting the operational efficiency of the government,” a finance ministry statement said of the small-bore restrictions. The ministry is hoping the measures — which include a 10% cut in non-plan expenditures, but exclude interest payments, repayment of debt, the defense budget, salaries, and pensions — will help to restrict the fiscal deficit



to 4.8% of the GDP in 2013-14. India’s finance ministry announced similar austerity measures in November last year, which helped it, contain the fiscal deficit at 4.9% of GDP. It is expected that the RBI will further increase the Repo Rate, but whether it will have any effect in redeeming the value of the Indian Rupee and quickening the GDP growth, apart from preventing a short-term inflation, is yet to be seen. REFERENCES:

1. George J. Benston (March 1973), "Required Disclosure and the Stock Market: An Evaluation of the Securities Exchange Act of 1934." American Economic Review 63

2. "Globalization and Canada's Financial Markets" (1989)Ottawa, Canada: Supply and Services 3. Bank for International Settlements (April 1986), "Recent Innovations in International Banking" (Basle:

BIS) 4. Stephen A. Ross (July 1989), "Institutional Markets, Financial Marketing, and Financial Innovation."

Journal of Finance 5. Ian Cooper (November 1986), "Financial Innovations: New Market Instruments." Oxford Review of

Economic Policy 6. Merton H. Miller (December 1986), "Financial Innovation: The Last Twenty Years and the Next."

Journal of Financial and Quantitative Analysis 7. Andrew RossSorkin(November 2009), “Too Big to Fail: The Inside Story of How Wall Street and

Washington Fought to Save the Financial System—and Themselves”

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WOOL & WOOLLEN TEXTILE INDUSTRY

DR. L. SATHEESKUMAR,

Research Supervisor, Assistant Professor, DDE, Annamalai University,

Annamalai Nagar India

MRS.S. RADHA,

Ph.D. Research Scholar, Annamalai University, Annamalai Nagar. India

ABSTRACT

The unorganized Woollen Sector suffers from inadequate processing facilities. The pre loom & post loom facilities are outdated. The sector uses crude form of carding, which results in low productivity, besides affecting the health of workers. The spinning technology is primitive, which is urgently required to be upgraded through improved equipments/ machineries. The Scheme provides a comprehensive service package from deburring to carding & spinning stage. The setting up of modern plants will increase wool-processing capacity, will provide value addition to Indian wool, will create more employment and will augments income to personnel engaged in these decentralized activities. Keywords: Blended Products; Sheep; Wool; Woollen



INTRODUCTION:

The Ministry of Textiles had allocated Rs. 13.00 Crore to the Central Wool Development Board (CWDB) during the financial year 2012-13 to implement various Plan Schemes and Programmes for the holistic growth and development of wool sector. The Board has utilized Rs. 9.90 Crore under Plan head till January, 2013. On the Non-Plan side a provision of Rs. 1.50 Crore was made for 2012-13 and the Board has utilized Rs. 1.31 Crore till January, 2013. During 2012-13, the Central Wool Development Board has undertaken the following activities;

INTEGRATED WOOL IMPROVEMENT AND DEVELOPMENT PROGRAMME (IWIDP):

The Programme has two main components: (A) Improvement of Wool Fibre and (B) Human Resource Development and Promotional Activities. Under IWIDP, the Board is implementing different schemes for improving quantity and quality of wool produced from Sheep, Angora rabbit , Pashmina Goat and is providing training to wool growers, weavers, resource persons etc. along with associated promotional and marketing activities. Following schemes are being implemented under this programme: (I) Sheep & Wool Improvement Scheme: (SWIS):

The Board had taken up 'Sheep and Wool Improvement Scheme' (SWIS) to improve the quality and quantity of indigenous wool in the country. The Board is implementing various projects under this scheme in all major wool producing States having components for: 1. 'Health Care' for treatment, vaccination and medicines to sheep 2. 'Breed Improvement for genetic improvement of sheep and to distribute stud Rams 3. support for 'Multipurpose Extension Centers' to provide different facilities at one place, 4. 'Marketing & Grading Assistance' to wool growers to get better returns from wool 5. Conducting 'Training Programmes' for wool growers through latest techniques of sheep rearing activities, 6. 'Ram Raising Unit' to develop good quality breedable.

(II) Angora Wool Development Scheme:

The Board is implementing Angora Wool Development scheme in hilly areas of country to support Angora rearing activity amongfarmers, strengthening Germplasm Centre (GPC), facilitating distribution of Angora rabbit among rearers as foundation stock along with necessary training, feed, and nutrition support free of cost. The scheme has following components; 1. Establishment of Mini Angora rabbit farm 2. Common Fac i l i t y Cen t re (CFC) for Angora Wool Processing and Training 3. Research & Development, 4. Strengthening of Angora Rabbit Germplasm Centre.

(III) Pashmina Development Scheme:

Keeping in view the potential of the pashmina wool production in country and its demand in the international market, CWDB is implementing this scheme to increase income from Pashmina wool to the Pashmina wool growers (nomads) and to sustain their interest in this activity as a reliable means of livelihood with following components: � Buck Exchange Programme. � Distribution of high quality Pashmina bucks in non-traditional areas to enhance Pashmina production. � Training of formation of Breeders Association (Guilds) or village Pashmina Cooperative Societies. � Establishment of Fodder Bank. � Refresher Training to Nomadic Breeders as Paramedics. � Health Coverage. Fodder Development. � Provision of improved Pashmina Combs for Efficient Harvesting of Pashmina.



(IV) Human Resource Development & Promotional activities:

The following activities are part of HRD & Promotional Activities: � Marketing and Promotional activities (organizing fairs and Woollen Expos, seminar and workshops, etc.) � Market Intelligence and Publicity. � Publication of quarterly news magazine 'Wool Ways' � Research, Study and Consultancy. � Training under Weaving and Designing Training Centre, Kullu Monitoring and Evaluation

of Scheme. � Human Resource Development and Training to farmers/ breeders/ weavers. � Strengthen and upgrade wool testing, wool grading and marketing facilities.

During the financial year 2012-13, the Board has provided Rs. 2.10 Crore for above activities. Till January, 2013, the Board utilized Rs. 0.90 Crore and provided training to 40 women at Weaving & Designing Training Centre in handloom weaving, running two Wool Testing Laboratories at Bikaner & Kullu for raw wool, organized 16 Woollen Expos (Exhibition-cum-sale of woollen products). 1. Quality Processing of Wool and Woollen Scheme:

A provision of Rs. 1.00 Crore has been made in 2012-13 to set up two new Common Facility Centres like wool scouring, carbonizing, dyeing and carding of wool etc. The scheme is being implemented in project mode with Rs. 50 lakh or 50% of the total project cost, whichever is less towards cost of machinery only. Till January, 2013, the Board has utilized Rs. 0.89 Crore and sanctioned both new CFCs at Srinagar and Karnataka.

2. Social Security Scheme for Sheep Breeders:

The Board is implementing this scheme to benefit the sheep breeders by providing life insurance to them and their sheep flock by two plans; A. Sheep Breeders Insurance Scheme B. Sheep Insurance Scheme.

1. Total premium payable under 'Sheep Breeders Insurance Scheme' is Rs. 330/- and contribution of

sheep breeder, Central Wool Development Board & Social Security Fund (of Govt. of India) is Rs. 80/-, 150/-and Rs. 100/- per year, respectively. In the event of natural death of the sheep breeder, sum assured is Rs. 60,000, in case of partial disabili ty sum assured is Rs. 75000/- and in case of accidental death/total disability sum assured is Rs. 1,50,000. Additional benefit of scholarship for two children @ Rs. 300 per quarter per child is also to be paid to the student studying from 9th standard to 12th standard.

2. Total premium payable under 'Sheep Insurance Scheme' is Rs. 44/- per sheep. Out of it, Rs. 19/- per

sheep is contributed by the sheep breeders and CWDB's contribution is Rs. 25/-per sheep. In the event of death of sheep, sum assured is Rs. 1,200/-per sheep. The benefit of subsidy is provided to beneficiary for maximum period of three year.

Exports of Wool & Wool Blended Products:

The Council maintains statistics on the basis of data received from DGCI&S, Kolkata. Till now, the Council has received data upto Dec. 2012. The exports of wool and wool blended products have shown decline of 4 percent in rupee terms and 18 percent in dollar terms during April 2012 to Dec. 2012 (2012 13) as compared with same period of corresponding year according to data released by the DGCI&S, Kolkata. The statement of export during April to Dec. 2012 is given at table 1.



TABLE-1 (Value in Rupee Crore)

Products Export Export Export %Age

2011-12 2011-12 (Upto Dec. 11)

2012-13 (Upto Dec. 12)

decrease (Upto Dec. 12)

RMG WOOL 1707.92 1347.51 1296.62 3.78%% WOOLLEN YARN, FABRICS, MADE-UPS ETC

726.24 530.91 510.01 3.94%

TOTAL (INR) 2434.16 1878.42 1806.63 3.82%

TOTAL IN MILLION US$ 512.12 401.57 330.47 17.71%

TARGET MILLION US$ 700.00 750.00

Source: Wool Advisory Board

The import figures of following products for the year 2011-12 & 2012-13 (upto Dec. 2012) are given below at table-2.

Table-2 (Value in Rupee Crore)

Product 2011-12 2012-13 (Upto Dec. 2012)

RAW WOOL 1876.71 1396.27

WOOLLEN & YARN FABRIC 184.84 181.89

WOOLLEN AND COTTON RAGS ETC. 235.30 255.95

TOTAL 2296.85 1834.11

IN MILLION US$ 481.09 508.50


IMPORT (QUANTITY-WISE) {Table 3 & 4}:

Table-3 RAW WOOL

YEAR QUANTITY IN TON

2010-11 94777

2011-12 75671

2012-13 (UPTO DEC. 12) 56145


Table-4 RAGS (WOOLEN/COTTON)

YEAR QUANTITY IN TON

2010-11 95547

2011-12 139948

2012-13 (UPTO DEC. 12) 140298


EXPORT PROMOTIONAL ACTIVITIES:

The Council participates in Trade Fairs/ Exhibitions abroad and convenes Buyer-Seller Meets (BSM) to promote the Indian woollen products. The Council has participated/participating in various promotional activities during 2012-13 as given at table 5:

TABLE-5

S.No. Name of Activity

1 Foire De Paris, France - 27th April to 8th May, 2012

2 Fashion Industry, Saint Petersburg (Russia) - 11th to 14th Oct., 2012

3 Intermoda, Guadalajara (Mexico) - January 15-18, 2013

4 Muba 2013, Messe Basel (Switzerland) - 22nd Feb. to 3rd March, 2013

5 Cairo International Fair, Cairo, Egypt (March 19-29, 2013)

6 Tex Trends India 2012, Pragati Maidan, New Delhi - July 16-18, 2012



CONCLUSION:

Today in this new century the woollen sector of the Indian Textile Indutry has many big brands names on its horizon. The woollen industry deserves a special mention for creating the concept of brand marketing on the national scale in the textile field. Some of the brands have been successful to create a mark even outside Indian boundary. India is the seventh-largest producer of wool and accounts for nearly 2 per cent of total world production. The global textile and clothing trade was estimated to reach US$ 691 billion in 2011, representing a growth rate of 5.45 per cent for the period 2006 to 2011. India has the third largest sheep population in the world with 71 million sheep. The annual wool production is in the range of 43-46 million kg. The export of wool and wool-blended products (readymade garment wool, woollen yarn, fabrics and made-ups) for 2011-12 was US$ 508 million. The wool textile industry in India is poised to grow at a healthy rate. A higher rate of technology penetration into this industry, coupled with government incentives and other capacity-building initiatives have resulted in increased exports, besides stimulating domestic consumption.

REFERENCES:

1. Compendium of International Textile Statistics, various issues, Ministry of Textile, Government of India. 2. Compendium of Textile Statistics, various issues, office of the textile commissioner, Ministry of Textile,

Government of India. 3. Confederation of Indian textile industry (CITI), handbook of statistics, 2008. 4. Cotton Textile Export Promotion Council. various issues. Handbook of export statistics. Bombay, India 5. CRISIL, (2006), “Vision for Indian Textiles and Clothing Industry, 2007–2012”, Confederation of Indian

Textile Industry document. 6. Datta, Soumyedra Kishore (2001), An Analysis of Productivity trend in the Indian cotton mill industry,

The Indian Economic Journal, Vol 49 No 2 7. Deaton (1990), Price Elasticities from Survey Data: Extensions and Indonesian Results. World Bank

LSMS working paper 69. Washington, D.C. 8. Deaton and Anne Case. 1988. Analysis of Household Expenditures; World Bank LSMS working paper

28. Washington, D.C. USA 9. Directorate General of Commercial Intelligence and Statistics(DGCI&S),various issues, Foreign Trade

Statistics, Ministry of Commerce, Kolkata, India 10. East India Cotton Association, Mumbai, India 11. Economic and Political Weekly (2005), After the MFA. Economic and Political Weekly, December, 17 2005. 12. Economic Survey, various issues, Government of India, Ministry of Finance, Economic Division, New Delhi. 13. Ganesh S (2002), Indian Textile Industry: Stifled by Warped Polices, Economic and Political Weekly,

march 23 pp 1095-1099.

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MEDICAL TOURISM IN INDIA – IT’S STRENGTH,

WEAKNESS, OPPORTUNITIES AND THREATS (SWOT)

S. S. ROSE MARY,

Associate Professor Department of Commerce

Periyar E.V.R. College (Autonomous) Tiruchirappalli, India

ABSTRACT

Medical Tourism is of the major type of tourism industry. The development of science and technology and infrastructure facilities largely contributes for employment opportunities and increase of national income. However, medical tourism has own weakness and threats hence precautionary measures are required to make the medical tourism sustainable growth tourism. This paper is an attempt to analyze strength, weakness, opportunities and threats of medical tourism in India. Keywords: Medical Tourism, Medical Tourist, Low Cost, Various Diseases, Medical Treatments and Patients



1. INTRODUCTION:

India is a growing one of the developing countries which has growing destination for medical tourism. The climatic condition together with the varieties of medical herbs and plants and advancement in medical science provide the scope for medical tourism. Alternative medical system in India, providing treatments like Ayurveda, Naturopathy and Homeopathy facilitate medical tourism. The major medical tourism hubs are India, Cuba, Argentina, Malaysia, South Africa, Thailand and Jordan. India is ranked number two in medical tourism industry in the world. Medical tourism is patient movement from highly developed nations to other areas of the world for medical care, usually to find treatment at a lower cost. Medical tourism is different from medical travel where patient’s journey from less developed nations to major medical centers in highly developed countries for medical treatment that is unavailable in their own countries. Medical Tourism is a growing sector in India. India’s medical tourism sector is expected to experience an annual growth of 30% making it a $2 billion industry by 2015.1

2. STRENGTHS:

Many factors which makes India a destination for visitors, seeking health care services. It include well trained medical practioners, well number of English speaking medical staff, a well mix of allopathic and alternative system of medicine, the availability of specialty centers, technically advanced and diagnostic equipment and availability of services at comparatively less cost. India is turning out estimated 20,000 – 30,000 highly skilled doctors and medical consultants every year. High reputation and goodwill for Indian doctors exists in the world. Medical assistance providers and agents also play a significant role.2 A number of hospitals which is fast emerging have hired language translators to make patients more comfortable while at the same time helping in the facilitation of their treatment. Many doctors and Nurses are fluent in English. Language is not a barrier in India as a large section of people can understand and speak international languages particularly the English. Good medical facilities and talented and experienced pool of professionals in the medical field, the high rate of investment in medical research in India and its history of subsidized medical tourism have created some of the most efficient medical professionals in the world. Many of such talented medical professionals have years of experience in treating patients in the western countries. Hence, they are well acquainted with the medical problems of people there; they use their experience and expertise sitting in India to treat international patients.3 Best private hospitals are situated in India with the latest technology. Some have affiliation with John Hopkins and Harvard School.4 Hence, they have the set up to take care of international patients who are conscious about quality treatment. The most popular treatment sought in India by medical tourist is alternative medicine, bone-marrow transplant, cardiac bypass, eye surgery and hip replacement. India is known for in particular for heart surgery, hip replacement, surfacing and other areas of advanced medicine.5 Kerala for Ayurvedic treatment, Chennai for Eye treatment, Delhi, Mumbai and Bangalore for heart, cosmetic, Dental and Neuro surgery etc.The biggest benefit of medical tourism in India is the cost. Medical treatment in India is offered at a lower cost in the world. Their air ticket expenses and accommodation expenditure, even if they are put up in luxury hotel will not be more than their expenses in USA or UK. Patients will be able to save at least 50% of their cost if they choose India over other developed countries. An estimated 1, 50,000 of those travel to India for lower priced healthcare procedure every year6.

3. WEAKNESS OF MEDICAL TOURISM IN INDIA:

Medical tourism carries some risks that locally provided medical care does not. Some countries like India, South Africa or Thailand have very different infectious disease related epidemiology to Europe and North

1 http://www.slideshares.net/marketingdaibs/ medical- tourism- grp-c cited on 2,october2013 2 “medical translators to aid foreign patient’ The Times of India,24-1-2013 3 Bulletin of the world Health Organization, Vol 90, April2012 ,241-320,cited in http:www.medicalhealthcare.com/content.Php. 4 Ibid.p.1 5 http://www.en .wikipedia.org/wkli/Economy-of Chennai – Medical Tourism in India , p.2,cited on 8,3 2013 6 ibid



America. Exposure to diseases without having built up natural immunity can be hazard for weakened individuals, specifically with respect to gastro intestinal diseases (e.g.) Hepatitis amoebic dysentery, paratyphoid which could weaken progress and expose the patient to mosquito-transmitted diseases. However, because in tropical nations diseases runs to gamut, doctors seems to be more open to the possibility of considering and infectious diseases, while there are cases in west where patients were consistently misdiagnosed for years because such diseases are perceived to be ‘rare’ in the west. The quality of post-operative care can also vary, depending on the hospital and country. Travelling long distances soon after surgery can increase the risk of complications. Health facilities treating medical tourist may lack an adequate complaints policy to deal appropriately and fairly with complaints of dissatisfied patients. If there is any complication, the patient may need to stay in the foreign country for longer period than original plan and will not have easy access to follow up care. Medical tourist is subject to unfamiliar legal issues. Some countries provide some form of remedies for medical malpractice; these legal avenues may be unappealing to the medical tourist. Hospitals\Doctors in some countries may be unable to pay the financial damages awarded by a court to a patient who has sued than owing to the hospital and/or the doctor not possessing appropriate insurance cover and /or medical indemnity. Major ethical issues around medical tourism are illegal purchases of organs and tissues for transplantation had been alleged in countries like India and China.

4. OPPORTUNITIES:

Increased demand for healthcare services from countries (US and UK) with ageing population, fast paced life style increases demand for wellness tourism and alternative cures, shortages of supply National Health System in countries in UK, Canada, Demand from countries with underdeveloped healthcare facilities and demand for retirement homes for elderly people especially Japanese. 1.3 million Medical tourists visit Asia every year. India is ranked number two in medical tourism industry. Major medical tourism hubs are India, Cuba, Argentina, Malaysia, South Africa, Thailand and Jordan.7 The companions of the patients and patients too after getting treatment, go to the religious places for paying homage and getting blessings of the saints. These people are also making purchase of Indian goods. Many of them visit historical monuments. Thus in brief medical tourism is the mixture of all kinds of business. Alternative Medical System in India, providing treatments like Ayurveda, Naturopathy and Homeopathy that heal without any side effects. Ayurveda resorts in India or the many luxury spas dotting the picturesque beaches of Kerala and the Majestic heights of Himalayas. Tour operators in India, in collaboration with premier healthcare provider in India have many medical tour packages. Fall of rupee value have impact on the medical tourism which can be known from the following. According to a study by the Associated Chambers of Commerce and Industry of India (ASSOCHAM) falling rupee value against foreign currency causes 40 per cent increase of medical tourist in India. "Fall of rupee versus dollar has proved to be advantageous to the patients from Middle East, Africa and SAARC countries to the extent of 35 to 45 per cent on complex surgeries," D S Rawat, Secretary General, ASSOCHAM, said. Consequently, the inflow of patients has also gone up by 40 per cent during the last six months, the study showed.8 The current market size of the Indian Medical Tourism segment is Rs 7,500 crore and likely to touch Rs 12,000 Crore by 2015 with an annual growth rate of 25 per cent. States like Andhra Pradesh, Karnataka, Kerala, Tamil Nadu, Maharashtra and New Delhi are fast emerging as India's best medical centers with several hospitals and specialty clinics coming up in the cities, as per the study. "The inflow of medical tourists in India is also likely to cross 45 lakh by 2015 from the current level of 25 lakh," the study found.9 Thus, India is perceived as one of the fastest growing sectors in marketing will be meaningful if the opportunities provided by medical tourism be utilized to improve the access, delivery and quality of services in the public health system. Threats: Medical tourism could worsen the internal brain drain and lure professional from public sector and rural areas to take jobs in urban centers.

7 http://www.slideshare.net/marketingdiabs/medical - tourism-grp-c, 7/3/2013 8 The Times of India,New Delhi, September 17,2013file:///D:alldacument/Travelb BizMonitorWeakrupeespursMedicalTourisminIndiaAssOHAM.htm. 9 The Economic Times, September 13, 2013.



“Although there are no ready figure that can be cited from studies, initial observation suggest that tourism dampens external migration but worsens internal migration,” , said Dr. Manuvel Dayrit, Director of World Health Organization’s Human Resources for Health Department.“It remains to be seen how significant these effects are going to be. But in either case, it does not augur well for the health care patients who depend largely on the public sector for their services as the end result does not contribute to the retention of well qualified professionals in the public sector services,” Dayrit said. Dayrit disagreed with medical tourism portents, who argue that some revenues from medical tourism will find their way into public coffers to help retain staff in the public sector. “Unless national laws or regulations are set up so that these revenues are taxes explicitly and channeled to the public sector to augment salaries, the likelihood of this happening is very slim,”he said10. Experience from India suggests that private hospitals attract health professionals away from the public health sector and rural areas in India. This internal brain drain creates shortages of trained health worker, thus reducing access to health care for local population in rural India and exacerbating inequalities. In India some private hospitals agreed to provide services to poor people for no costs and in turn received government’s subsidies in the form of land, tax breaks and medical equipment. However, the facilities oriented towards medical tourism do not meet the health needs of the average rural poor and evidences suggest that few Indian poor people have benefited from such care.11 Greater inequity in the health system: The private sector in India has a dominant presence. It accounts for 82% of outpatient visit 58% of inpatient expenditure and 40% of birth in institutions.1275% of HR & technology, 68% of the estimated 15097 hospitals and 37% of 6, 23,819 total beds in the country are in the private sector. Private hospitals in India earned approximately US$15.5 billion in fiscal year and rise to US$32,5 billion in 2012 which represents an annual growth rate of about 19% a year13. An increasing proportion of people are using private health care facilities, rather than public, though the costs in the latter are much more affordable. In 1986-87, the choice for patients in both rural and urban centers was titled in favour of public hospitals over private hospitals (60 to 40). In 2012, 61% in urban areas had chosen the private sector over the public and in rural areas; nearly 69% had put their faith in the private sector.14The prospects of medical tourism have stimulated further growth in this sector by introducing an increasing number of joint ventures and collaborative endeavors on the positive side, such partnership and collaborations have helped to improve service facilities and introduce superior management techniques and information system.15 However, the potential for earning revenue through medical tourism could become an important argument for private hospitals to demand great subsidies from the government in the long run. This could potentially lead to a situation where specialty corporate hospitals are established using public funds and subsidies thus diverting resources from public health system and exacerbating the disparities in two-tiered health care system with a corporate segment and public sector segment. The two-tiered system may also cause ‘cream skimming’, whereby those who less but need can pay more are served at the expense of the poor and more deserving. Increasing cost of medical treatment: One of the effects of the increase in medical tourist would be rise in the overall cost of health care in the country. According to NSSC Survey estimates between the year 1995-96 and 2004-05 medical costs increased by 55.67% and 77.28% respectively for government and private sector in rural India. In Urban India, the corresponding increase was 76.6% and 116.2% respectively.16Cesarean operation cost in Government hospital Rs.2500, private teaching hospital Rs.7000 and Rs.40000 odd because operation theatres were under utilized in charitable institution.17 The way ahead: To counter act the threats and ensure a favorable impact on the public health system, certain measures will need to be taken. Equitable growth of public and private sectors reduce the variation in quality of

10 Bulletin of world health organization,vol.85,cited in http://www.who.int/bulletin/volume85/3/07-010307/en/medical tourism 11 http://www.slideshare.com.net/marketingdaibs/medical-tourism-grp-c 12 The private health sector in India. British Medical Journal 2005;301:1157-8 13 ibid 14 www.thehindu.com/sci-tech/health/more-people-opting-for-private-health care/article 49672888.ece.”More people opting for private healthcare”, The Hindu, Aug,1,2013, Chennai. 15 http://www.Joint commission international.org/JCI Accredited-organization/# India 16 ibid 17 www.thehindubusinessline.com/news/what-does-a-csection-cost-a-hospital/article4949094.ece What does a c-section cost a hospital,P.T.Jyothi Datta,Mumbai, July, 24, 2013



care provided in public and private sector. The linkages could be established through profession exchanges, co-operation in training, and use of facilities, telemedicine, sharing of information and research and by providing complementary or specialized treatments. Another means of forming linkages would be to cross subsidize the public and private health care sectors by transferring tax revenues from the latter on by providing some services free or subsidized rate in high quality corporate hospital. But, however, would need to be monitored.

CONCLUSION:

Thus, the growth of Medical Tourism in India contributes for the development of infrastructure in medical facilities, Medical science, national income, employment opportunities and urbanization. The policies are required to minimize or reduce the adverse effects of Medical Tourism. Likewise, the administrative measures are needed to eradicate the inequality between the rich and poor and disparity between the urban and rural areas arising out of the medical tourism sector. REFERENCES:

1. “medical translators to aid foreign patient’ The Times of India,24-1-2013

2. Bulletin of the world Health Organization, Vol 90, April2012, 241-320, cited in

http:www.medicalhealthcare.com/content.Php.

3. Ibid.p.1

4. The Times of India, New Delhi, September 17,2013 file:///D:alldacument/Travelb

BizMonitorWeakrupeespursMedicalTourisminIndiaAssOHAM.htm.

5. The Economic Times, September 13, 2013.

6. Bulletin of world health organization,vol.85,cited in http://www.who.int/bulletin/volume85/3/07-

010307/en/medical tourism

7. The private health sector in India. British Medical Journal 2005;301:1157-8

8. Ibid

9. www.thehindu.com/sci-tech/health/more-people-opting-for-private-health care/article 49672888.ece.”

More people opting for private healthcare”, The Hindu, Aug,1,2013, Chennai.

10. http://www.Joint commission international.org/JCI Accredited-organization/# In d i a

11. ibid

12. www.thehindubusinessline.com/news/what-does-a-csection-cost-a-hospital/article4949094.ece What

does a c-section cost a hospital,P.T.Jyothi Datta,Mumbai, July, 24, 2013

13. http://www.slideshares.net/marketingdaibs/ medical- tourism- grp-c cited on 2,october2013

14. http://www.en .wikipedia.org/wkli/Economy-of Chennai – Medical Tourism in India , p.2,cited on 8,3

2013

15. Ibid

16. http://www.slideshare.net/marketingdiabs/medical - tourism-grp-c, 7/3/2013

17. http://www.slideshare.com.net/marketingdaibs/medical-tourism-grp-c

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THE IMPACT OF MGNREGS ON THE MIGRATION

OF LABOUR FROM RURAL AREAS

DR.D.BHASKAR,

Assistant Professor,

Girraj Govt. College (A),

Nizamabad, Andhra Prasdesh. India

ABSTRACT

Labour is a primary factor of production. It is considered to be important not only because it is

productive but also became it activates other factors and makes them useful for production

purposes. Therefore, the size of labour force in a country is of crucial importance for the level of

economic activity. The largest employment providing sector in India is agriculture. However,

with rapid increase in population, the absolute number of people engaged in agriculture has

become exceedingly large. Development of the other sectors of the economy has not been

sufficient to provide employment to the increasing additions to working population who are,

therefore, forced to fall back upon agriculture, even if their marginal productivity on land is zero

or nearly so. This gives rise to the familiar problem of under employment and disguised

unemployment. Most of the developing countries exhibit this heavy dependence of working

population on agriculture. According to the National Sample Survey Organisation (NSSO),

unemployment in rural workers has increased. Particularly seasonal unemployment in agriculture

is a normal condition in India. Agriculture labourers in India rarely have work throughout the

year. For this the Indian Government has taken up several employment programs to reduce

unemployment in rural areas, like Swarnajayanthi Gram Swarozgar Yojana (SGSY)-1999,

Sampoorna Grammen Rozgar Yojana (SGRY)-2001, The Swarna Jayanthi Shahari Rozgar

Yojana (SJSRY) 1997, PMRY, NREP, RLEGP, IRDP, TRYSEM, JERY, EAS. These programs

are not implemented effectively. For that, several poverty alleviation and employment generation

programmes are being implemented b the government to achieve inclusive development. The

flagship programme of the Government was MGNREA 2005, to provide job guarantee scheme

for rural Indians. The scheme provides a legal guarantee for at least 100 days of paid

employment. This research paper critically examines the implementation and achievement of the

programme and also impact of MGNREGS on the migration of labour from rural areas.

Keywords: Disguised unemployment, marginal productivity, seasonal unemployment, inclusive

development, MGNREA 2005, migration of labour.



INTRODUCTION:

Largest employment providing sector in India is agriculture. In 1951, 69.5 per cent of the working population

was engaged in agriculture. This percentage fell to 66.9 percent in 1991 and, to 56.7 percent in 2001. However,

with rapid increase in population the absolute number of people engaged in agriculture has become exceedingly

large. Development of the other sectors of the economy has not been sufficient to provide employment to the

increasing additions to working population. Labour is a primary factor of production. It is considered to be

important not only because it is productive but also because it activates other factors and makes them useful for

production purposes. Therefore, the size of labour force in a country is of crucial importance for the level of

economic activity. The largest employment providing sector in India is agriculture. However, with rapid

increase in population the absolute number of people engaged in agriculture has become exceedingly large.

Development of the other sectors of the economy has not been sufficient to provide employment to the

increasing additions to working population who are, therefore, forced to fall back upon agriculture even if their

marginal productivity on land is zero or nearly so. This gives rise to the familiar problem of under employment

and disguised unemployment. Most of the developing countries exhibit this heavy dependence of working

population on agriculture. According to the National Sample Survey Organisation (NSSO), the unemployment

in rural workers is increased. Particularly seasonal unemployment in agriculture is a normal condition in India.

MAHATMA GANDHI NATIONAL RURAL EMPLOYMENT GUARANTEE ACT – 2005:

To achieve inclusive development, several poverty-alleviation and employment-generation programmes are

being implemented by the Government of India. MGNREGA refers to the world’s largest welfare program,

running by the Government of India. This flagship programme of the Government of India aims at enhancing

livelihood security of households in rural areas of the country by providing at least one hundred days of

guaranteed wage employment in a financial year to every house hold whose adult members volunteer to do

unskilled manual work. It also mandates 1/3 participation for women. The primary objective of the scheme is to

augment wage employment. This is to be done while focusing on strengthening natural resource management

through works that address causes of chronic poverty like drought, deforestation, and soil erosion and thus

encourage sustainable development. The main aim of this Act was improving the purchasing power of semi or

un-skilled rural people of India, irrespective of whether or not they fell below the poverty line.


� To review the MGNREGA

� To analyze the salient features of MGNREGA

� To find out the share of women workforce

� To find out the share of SCs and STs workforce

� To find out the allocation of funds to MGNREGA for the vulnerable section of the society

� To find out the impact of MGNREGA on migration of labour from rural areas

� To study the factors influenced in participation of women in MGNREGA

METHODOLOGY:

� The present study made use of secondary data only from 2006-07 to 2010-11 financial years

� To analyse the MGNREGA, the graphic methods are used.

HYPOTHESIS:

� To examine the main objective of impact of the MGNREGA on the migration of labour form rural areas,

the following hypothesis are being formulated

� Participation of people in rural areas in rural employment scheme is very good

� There is no impact on migration of labour from rural areas

� There is a positive impact on growth rate of income levels of the rural people after implementing the MGNREGA

� There is a positive impact on growth rate of expenditure levels of the rural people after implementing the MGNREGA

PERFORMANCE OF THE MGNREGA FROM 2006-07 TO 2010-11: The MGNERGA aims to achieve

twin objective of rural development and employment. The Act also stipulates that work must be targeted

towards a set of specific rural development activities, such as water conservation and harvesting, rural



connectivity, flood control and protection such as construction and repair of embankments etc. Digging of new

tanks and construction of small check dams are also given importance, work includes land levelling, tree

plantation etc.

HOUSEHOLDS PROVIDED EMPLOYMENT

The MGNREGA was notified in 200 districts in the first phase with effect from 2nd February, 2006 and then

extended to an additional 130 districts in the financial year 2007-08. The remaining districts with rural areas

were brought under the Act with effect from 1 April 2008. About 5.49 crore households have been provided

employment under the programme.

PERCENTAGE SHARE OF WOMEN IN TOTAL PERSONDAYS GENERATED

The success of the programme entirely dependents on the participation of the community in generally and

women in particular, since the share of later in employment is almost 50 percent. At the beginning of this

scheme, the share of women participants is only 40 percent during the 2010-11 period, the share of women

participants is increased up to 48 percent which is nearly 50 percent it is great achievement of this scheme.

PERSONDAYS GENERATED

Years

During the 2006-07, this scheme was implemented in only 200 districts in the country at a time the person days was

generated 90.5 and in the 2007-08 financial year 143.59,in the financial year 2008-09 the days has increased all most

Year

in crore

Year

Per cent

In Crore



three times when compared to the financial year 2006-07. Further it is also observed that in the year 2008-09 the

scheme was expanded all over India. During the 2009-10 the person days generated was 285.52 which is highest when

compared to 2010-11 period, 257.15 persondays employment has been generated across the country

AVERAGE PERSONDAYS OF EMPLOYMENT PER HOUSEHOLDS

The main objective of this scheme was to provide job guarantee for rural Indians, not only for skilled persons

but also unskilled persons. In the financial year 2006-07 the persondays generated was 43 and it was increased

to 47 per households.

SHARE OF SCS/STS IN TOTAL PERSONDAYS GENERATED

At the beginning of the scheme, the total persondays generated was 90.50 out of which the share of SCs and

STs was 66 percent. In the financial year the persondays generated was 257.15 of which the share of the SCs

and STs was 68 percent.

EXPENDITURE ON WAGES IN TOTAL EXPENDITURE

Year

Year

Numbers

Year

Per Cent

Per Cent



AVERAGE WAGE PER PERSONDAY

“Investment in a scheme that guarantee rural employment with minimum wages should be seen as

complementary and not alternative to development activities”. It has aimed at enhancing the livelihood security

of people in rural areas by guaranteeing at least 100 days of employment in financial year to a rural areas

household whose adult members volunteer to do unskilled manual work. At national level, the average wage

paid under the MGNREGA has increased from Rs. 65/- in FY 2006-07 to Rs 120/- in FY 2011-12. This has led

to substantial increase in purchasing power leading to strengthening of the livelihood resource base of the rural

poor in India.

SHARE OF WATER CONSERVATION WORKS

The scheme is primarily aimed to creating public/community assets that would be useful for the society at large.

It can be used to create assets like small ponds and wells in private lands and this can assist in improving the

productivity of these lands. For water conservation in rural areas they are strengthening the ponds and digging

the ponds and construction of check dams work to preserve the water. In the financial year 2006-07, 54% of the

total work was done in water conservation works only.

This programme has successfully raised the bargaining power of agricultural labour, resulting in higher

agricultural wages, improved economic outcomes, and reduction in distress migration.

CRITICISM AND CONCLUSIONS:

MGNREGA has been argued to be no more effective than other poverty reduction programs in India. The

program is beset with controversy about corrupt officials, deficit financing as the source of funds for the

program, poor implementation and unintended destructive effect on poverty. At the national level, a key

criticism in MGNREGA related corruption. Workers hired under this program are frequently not paid full or

forced to pay bribes to get jobs. Another criticism is the poor quality of work from this scheme. Yet another

criticism is lack of skilled technicians at almost every site under this programme. A multi- million- rupee fraud

has been suspected where many people who have been issued the job card are either employed with other

government jobs or are not even aware that they have a job card.

Year

Rupees

Year

Per Cent



Another criticism is that this scheme is actually destroying rural economy due to unavailability of general

workers in the areas such as agriculture and small business. The government guaranteed work is very attractive

as there is little work pressure in the absence of any meaningful work purpose, targets, expectations,

supervision and policies.

REFERENCES:

1. NREGA Implementation Status Report for the financial year 2011-12, [Online] Available:

http://www.nrega.nic.in/netnrega/mpr_ht/nregampr.aspx, 2012.

2. “MGNREGA (2012) Operational Guidelines 2012”, Govt. of India, Ministry of Rural Development,

Department of Rural Development (MGNREGA-I Division), Krishi Bhavan, New Delhi, 20th September

2012.

3. “MGNREGA (2012), Report to the people”, Ministry of Rural Development, Department of Rural

Development, Government of India, New Delhi, 2nd February, 2012.

4. Dr. Debasiah Biswas, (2012) “ Performance of Mahatma Gandhi National Rural employment Gurantee

Scheme with Special Reference to Jalpaiguri District of West Bengal”, National monthly Refereed

Journal of Research in Commerce & Management, Vol. 1, No. 3 March 2012, pp 94-102

5. Ajay Krishna singh, Niti Sury and Sameer Lama (2012), “MGNREGA: A Critical Assessment of Issues

and Challenges”, The Indian Journal of Commerce, Vol. 65, No. 2, april – June 2012, pp. 151-164.

6. Harsimran Singh (2012), “Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA):

Issues and Challenges”, International Journal of Research in Commerce, Economics & Management, Vol.

2 No. 1, Jan, 2012 pp. 136-140

7. A.P. Palanichamy, (2011), ‘A study on Mahatma Gandhi national rural employment guarantee program

(MGNREGP) INI Thuinjapuram block Thiruvannamalai district in Tamilnadu”, International

multidisciplinary Research Journal, Vol.1 , No. 3, 2011, pp. 37-4

8. Moitri Dey (2010), “National rural Enmployment Gurantee Act (NREGA) A range of Possibilities”,

International Journal of Rural Studies (IJRS), Vol. 17 No. 2 Oct, 2010, pp. 1-7.

9. Pramathesh Ambasta, (2010) ‘MGNREGA and Rural Governance Reform – Growth with Inclusive

Through Panchayats”, international Conference on Dynamics of Rural Transformation in Emerging

Economies, New Delhi, India, April 14-16, 2012.

10. [Online] Available: http://www.mgnrega.nic.in.

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