The importance of having a strategic procurement plan Essay

The importance of having a strategic procurement plan - Essay Example This research will begin with the statement that procurement planning as noted by Sanjay is a dynamic process that needs input from different groups of professionals. Therefore John recommends that strategic procurement and planning in an organization should be performed by a multidisciplinary team established particularly for the duty, with the involvement of various technical and management professional who is experienced in procurement and supply management of strategic health supplies. Where necessary, the procurement planning team might request expertise and advice from certain advisors.   The multidisciplinary team is established to make sure that the planning process is not interrupted. The responsibilities of the team are not merely limited to the planning of the products, rather it as well involves monitoring, evaluation, and implementation of the strategic procurement plan. The procurement of health products such as medicines in a healthcare organization requires full kno wledge of the supply system, the sister organizations and other institutions involved. To make sure that there is a continuous availability of products within the organization, the procurement planning team of the organization, has to formulate, coordinate, carry out and monitor the entire procurement process. The team should perform a quick situation evaluation of the supply system to establish possible problems and bottlenecks that could negatively impact the availability of products within the main organization and sister organizations. As explained by Sanjay medicines supply system is cyclic in its nature whereby each task is supported by the past task and leads systematically to the next. Supposing each task is carried out independently of one another instead of being an element of an integrated system, the result is increases in costs, frequent stock shortages and deterioration in the quality of patient care. A good example of this aspect can be viewed in the needs estimation process when there is accurate, well-written and regularly updated epidemiological accounts and information on the use of the product and purchases might become more accurate, efficient and timely.

Estimiting the half - value layer thikness Lab Report

Estimiting the half - value layer thikness - Lab Report Example Alpha particles are easily shielded thus they will present no external radiation hazard. The thickness of material of 50% of the underlying incident energy has been attenuated and known as half-value layer (HVL) and it is normally expressed in either mm or cm. Photo energy is normally dependent on the increasing energy of the stream of photons thus resulting to increase in material HVL. The experimental equipment was outlined as shown in the figure below. The radioactive sources are encapsulated in thin metal shield that absorbs beta radiation accompanying the decay. The alpha radiation is solely slightly attenuated but the beta radiation. Every source is contained within a cylindrical lead radiation shield in order to eradicate eminent health hazards Measurement was performed to verify the statistics of the prevailing pulse counting (cf Data examination). Cs-137 source was used and mounted on a single lead slab amidst sources and corresponding GM-tube X-rays are normally absorbed in an exponential manner A= A0e(-0692h/H where A0 is the original x-ray intensity, A is the x-ray intensity transmitted via an absorber of thickness x,e is the natural logarithm system and  µ is the slope of the underlying absorption curve(normally linear attenuation coefficient measured in per cm). Linear attenuation coefficient is associated to the corresponding density of the absorber. The half-value layer is normally the thickness of the radiation absorbing material that reduces x-ray intensity by  ½. Based on the value from the slope of the natural log plot, the thickness of aluminium and wood in regard to reduction of the gamma beam intensity from the radioactive Cs-137 source to the corresponding its initial intensity. The main human error was random error from the experimenter thus I can be controlled by taking many readings. For a thickness of 2HVL the corresponding photon intensity was reduced by  ¼ of the initial value whilst for a

Principles, Characteristics and Features of Programming

Principles, Characteristics and Features of Programming Discuss the principles, characteristics and features of  programming using a .NET framework. The .NET Framework is created as an integrated environment for seamlessly developing and running applications on the internet, on the PC as Windows Forms, and even on the compact Framework mobile devices. The Main goals are: 1.Provide scenario across a wide range of programs. 2.Provide a scenario that reduces the (DLL) versioning conflicts that is tackled by COM programmers 3.Simplification of the code installation and distribution steps. 4.Supply portable environment. 5.Supply managed scenario in which code is better verified for safer execution. To gain these broad objectives, .NET Framework is divided into 2 steps: 1.CLR (Common Language Runtime) 2.FCL (Framework Class Library) Questions: Q: B. For M1 Provide a detailed explanation including also a diagram of the .Net framework architecture.  Ãƒâ€šÃ‚   The Microsoft.Net Framework serves as platform for tools and technologies you require to develop Networked pragmas, Web Applications, and Distributed Web Services. Net Framework supplies the required run-time and compile-time basis to develop and execute any language that is compliant to Common Language Specification(CLS). The major components of.Net Framework are Common Language Runtime(CLR) and the.Net Framework Class Library(FCL). The Common Language Runtime(CLR) is a runtime environment of the.Net Framework, that runs and manages all avail code like a Virtual environment. The .Net Framework Class Library(FCL) is a massive collection of language-independent and type-safe reusable sets. The .Net Framework Class Libraries (FCL) are grouped into a logical grouping according to their specific functionality and usability and it is referred as Namespaces. Task 2: P1.2 the student: Question: Q: With the use of diagram critically compare at least 2 different types of .NET framework architectures. Microsoft.NET framework architecture is the model of programming for the.NET platform. The .NET Framework architecture supplies a controlled execution scenario, simplified integration and creation and deployment with a wide selection of programming languages. The .NET Framework   architecture class library is a comprehensive, object-oriented sets of reusable methods a developer can utilise to build applications. The .NET Framework architecture class library incorporates ADO.NET, ASP.NET, and Windows Forms. (CLR)   Common language runtime is the main runtime engine core for executing applications with in the enviorment . Common language runtime CLR is a safe area   a sandbox   where the .NET code runs. Code that runs with in the CLR is referred as A managed code. It is highly guarded from the external environment and fully optimized within, gaining advantage of the methods that the CLR supplies such as security, performance, deployment facilities, and memory control, this also includes garbage collection. For P1.3 Critically evaluate the two components found in the .NET framework architecture. As previously mentioned, .NET Framework is a platform that supply tools and mechanism to build Windows applications. Two common components are. Common language Runtime (CLR) .NET Framework Class library Common language Runtime (CLR) .Net Framework supplies runtime environment called Common Language Runtime CLR. It supplies an environment to launch all the .Net applications. The code running under the CLR is called as Managed Code. CLR is also in charge of managing the memory and threating of its running apps. The Microsoft Intermediate Language (MSIL) is a Programing language used as the exodus of a multiple compilers (C#, VB, .NET). The ILDasm (Intermediate Language Disassembler) program that ships with the .NET Framework SDK (FrameworkSDKBinildasm.exe) allows the user to see MSIL code in human-readable format. Net framework Class Library (FCL) FCL supplies UI, data access, DB connection, cryptography, web apps development, numeric algorithms, and network communications. Developers code software by merging their own source code with .NET Framework together with other libraries. .NET Framework is created to be used newer apps developed for Windows platform. Microsoft also developed an integrated development environment largely for .NET software called Visual Studio. BCL is a superset of FCL and refers to the entire class library that ships with .NET Framework. It includes an expanded set of libraries, including ASP.NET and windows form among others. BCL is larger in scope than standard libraries for languages like C++

The Hollow Men Essay -- Literary Analysis

At a point in all mortal’s existence, there will be a moment when their soul is between two states of being, waiting to be judged. Without the fearlessness and faith to move on to the afterlife, they will spend eternity stuck in purgatory. When T. S. Eliot wrote â€Å"The Hollow Men,† he used symbolism, imagery, and repetition to share his insight to address the lack of courage and faith that plagues every human being. T. S. Eliot’s â€Å"The Hollow Men† is a dramatic monologue, free verse poem that consists of five parts that could be considered five separate poems. His use of â€Å"allegorically abstract text nevertheless achieves a remarkable unity of effect in terms of voice, mood and imagery† (Morace 948). Before the poem starts, there are two epigraphs; â€Å"Mistah Kurtz – he dead. / A penny for the Old Guy† (lines 1-2). Eliot alludes to these two epigraphs because their themes are developed throughout his poem. â€Å"The first epigraph is from Joseph Conrad’s â€Å"Heart of Darkness,† a story †¦that examines the hollowness and horror of lack of faith, spiritual paralysis, and despair† (Bloom 61), just like the â€Å"hollow men† in his poem. The second epigraph â€Å"refers to the celebration of Guy Fawkes Day in Britain† (Bloom 61). This is a day that celebrates Fawkes’ unsuccessful rebellion against Kin g James I with his capture in the cellar of the Parliament building, where stored gun powder was supposed to blow up and kill King James I and his family. Once captured, he cowardly turned over his co-conspirators and they all were killed. It is â€Å"celebrated with bonfires, fireworks, the burning of scarecrows, and solicitation of ‘pennies for the Old Guy’. Eliot’s images of scarecrows, a cellar, and violent souls recall this tale of a violent plot tha... ...nsight to address the lack of courage and faith that plagues every human being. â€Å"The poem succeeds admirably in registering a mood not merely of disillusionment, but of personal weakness† (Morace 950). Without the faith and courage to face the final judgment, and move on to the afterlife, one will be left to linger in purgatory. Works Cited Bloom, Harold. "Thematic Analysis Of ‘The Hollow Men’." Bloom's Major Poets: T.S. Eliot (1999): 60-63. Literary Reference Center. Web. 28 Nov. 2011. Eliot, T.S. "The Hollow Men." Famous Poets and Poems - Read and Enjoy Poetry. 6 Aug. 2006. Web. 5 Dec. 2011. Morace, Robert A. "The Hollow Men." Masterplots II. Ed. Frank N. Magill. Englewood Cliffs: Salem Press, 1992. Vol. 3. 948-50. Print. Urquhart, Troy. "Eliot's THE HOLLOW MEN." Explicator 59.4 (2001): 199. Literary Reference Center. Web. 5 Dec. 2011.

Emerging Markets in International Business

[pic] Introduction: The buzz words in the international trade are India and China. They jointly account for 2. 4 billion people in the world i. e. about 40% of the world’s population, and an estimated future GDP growth of 8-10%. Modern economists believe that the future of international trade lies in the economies of emerging markets like India, China, Iraq, Brazil, Africa etc. Economist Thomas L Friedman has rightly said that there are three technological events that have contributed to the growth of these economies- The Personal Computer, through which individuals could become authors of their own content in digital form. The Internet – that provides the convenience of sending information to any part of the world. Lastly Software Manufacturing – which has made everyone’s computer interoperable. Convergence of these technologies have made economies which were once underscored as â€Å"Third World Economies† as the emerging hubs for International Business. However these economies are faced with new challenges when competing globally, such as lack of infrastructure, quality in education and corporate governance. The challenges that showcase their weakness can be an investment opportunity, thus making them viable markets worth venturing into. Objective: Our study focuses on the significance and impact of new markets in international trade on countries, companies and also on individuals. This study will also aim at understanding the trade problems faced by them in this area and to propose ways and measures to tackle them. Methodology: Our methodology comprises of information search, observations, questionnaires and opinion interviews with industrial experts and faculties. Various statistical measures will also be used to analyse the data. Outcome of the research: Through this study, we intend to bring out the different roles of emerging markets in international trade. These measures are taken via questionnaires; opinion of industrial experts, faculties specialized in international business and pre dominantly from few exporters who focus on international trade. We believe that the outcome of this study will help the corporate and individuals to prepare themselves to overcome the problems they are facing in the emerging battlegrounds of international trade. INTRODUCTION: The term â€Å"emerging markets† is used to describe a nation's social or business activity in the process of rapid growth and industrialization. The Center for Knowledge Societies defines Emerging Economies as those â€Å"regions of the world that are experiencing rapid informationalization under conditions of limited or partial industrialization. † Currently, there are approximately 28 emerging markets in the world, the largest being those of India and China. Examples of other emerging markets include Argentina, Brazil, Chile, Mexico, Russia, some Arab Gulf States and South Africa. The rapid integration into world markets by six of the largest non-OECD (Organization for Economic Co-operation and Development) economies (Brazil, Russia, India, Indonesia, China and South Africa, together known as the BRIICS) was an important component of globalisation during the past two decades. Economic incentives across world markets and in the BRIICS in particular, have been aligned more closely with countries’ and businesses’ genuine strengths. From the past few decades, all of the BRIICS have opened their economies significantly and improved their connectedness to world trade networks. The substantial reduction of trade barriers at the border can be seen, for example, in the decline of the average applied tariffs on non-agricultural products. However, the pace varied across these countries. Dispersion of tariffs also fell, contributing to a further reduction in economic distortion. However, in this study we focus on the emerging engines in the Asian Business – India and China, which together accounts for 2. 5 billion people, China and India are today the driving forces of growth in the midst of rapid economic transformation in the global economy. The Composite Leading Indicators (CLI) designed to provide early signals of turning points in business cycles, rose by 0. 4 point for India in April 2009, and 0. 9 for China. For much of human history, what China and India had in common was the fact that they were the richest nations on earth. Long before Europe emerged, China and India had higher standards of living and more numerous technical and scientific inventions. Yet starting in the early nineteenth century this began to dramatically change with both countries experiencing a long relative decline, eclipsed ultimately by Europe and North America. By mid twentieth century, both countries were relatively poor. The reversal of China’s fortunes began in 1978 when Deng Xiao Ping came to power and instituted market oriented economic policies and that of India began in the early 1990s when, in response to a financial crisis, the government reversed decades of socialistic policies and began a gradual path toward market orientation. Since those policy reversals, both countries have grown rapidly. For the first time since the early nineteenth century, they have expanded their share of global GDP. [pic] Figure 1: Global GDP share expressed as a percentage from 1600-2001 for the key players in global economy. Global investment firm, Moody’s say that driven by renewed growth in India and China, the world economy is beginning to recover from one of the worst economic downturns in decades. The Chinese GDP has risen by 7. 9 per cent while that of India has grown by 6. 1 per cent in the April-June 2009-10 periods. Moody’s has now revised India’s growth forecast to 6. 4 per cent for the current fiscal. FACTORS AFFECTING CHINA’S GROWTH: International trade makes up a sizeable portion of China's overall economy. The course of China's foreign trade has experienced considerable transformations since the early 1950s. In 1950 more than 70 percent of the total trade was with non-Communist countries, but by 1954, a year after the end of the Korean War, the situation was completely reversed, and trade with Communist countries stood at about 75 percent. POLITICAL REFORMS The Chinese Economy was on the forefront of economic greatness under the periods of Mao Zedong from 1949 – 1978 who introduced the â€Å"Great Leap Forward† under this economy, the country was a centrally planned economy. Though this idea of planned economy was inculcated in the economy, the intervention of state in agriculture led to massive corruption, ultimately leading to the deaths of millions of people due to starvation. Market Oriented Mixed Economy: This led to a period rule under Deng Xiaoping , who introduced the â€Å"market oriented mixed economy†-based on private property . Under this system China saw much growth in both national and international trade. Farmlands were privatized and agriculture was now a concern of both the state and the individual. A market economy is an economy based on the division of labor in which the prices of goods and services are determined in a free price system set by supply and demand. This is often contrasted with a planned economy, in which a central government determines the price of goods and services using a fixed price system. Market economies are also contrasted with mixed economy where the price system is not entirely free but under some government control or are heavily regulated and may sometimes be combined with state-led economic planning. SOCIAL REFORMS: Another area which is pivotal in the area of growth is the social and cultural condition which is important to enhance the growth. One Child Policy: This is a measure which was started in China to curb the population explosion in China. China’s one child family policy, which was first announced in 1979, has remained in place despite the extraordinary political and social changes that have occurred over the past two decades. It emerged from the belief that development would be compromised by rapid population growth and that the sheer size of China’s population together with its young age structure presented a unique challenge. Most population growth rate targets were abandoned in the early 1980s, and from 1985 the official goal was to keep the population at around 1. 2 billion by 2000. Protection for Private Property Rights: Prior to 1978, private ownership of property was not encouraged at any cost. However later the government started to proportionate and distribute private property. Harmonious Society: This is a socio-economic vision that is said to be the ultimate end result of Chinese leader Hu Jintao's signature ideology of the Scientific Development Concept. It serves as the ultimate goal for the ruling Communist Party of China along with Xiaokang society, which aims for a â€Å"basically well-off† middle-class oriented society. First proposed by the Chinese government under the Hu-Wen Administration during the 2005 National People's Congress, the idea changed China's focus from economic growth to overall societal balance and harmony. Grasping the Large and Letting the Small Go Policy: These reforms (1996) included efforts to corporatize state-owned enterprises (SOEs) and to downsize the state sector. The â€Å"grasping the large† component indicated that policy-makers should focus on maintaining state control over the largest state-owned enterprises (which tended to be controlled by the central government). â€Å"Letting the small go† meant that the central government should relinquish control over smaller state-owned enterprises. Relinquishing control over these enterprises took a variety of forms: giving local governments authority to restructure the firms, privatizing them, or shutting them down. ECONOMIC REFORMS: One of the main factors which contributed to the economic growth of China was the Economic liberalization which was started in 1978. Its economy changed into a market oriented mixed economy. They implemented several instruments to increase their economic growth. Special Economic Zones (SEZ’s): China was the first country to introduce SEZ’s and they followed a western style of management which resulted in survival of best in the market. It is a geographical region that has economic laws that are more liberal than a country's typical economic laws. The category ‘SEZ' covers a broad range of more specific zone types, including Free Trade Zones (FTZ), Export Processing Zones (EPZ), Free Zones (FZ), Industrial Estates (IE), Free Ports, Urban Enterprise Zones and others. Usually the goal of a structure is to increase foreign direct investment by foreign investors. Special Economic Zones were founded by the central government under Deng Xiaoping in the early 1980s. The most successful Special Economic Zone in China, Shenzhen, has developed from a small village into a city with a population over 10 million within 20 years. Five Year Plans: The economy was shaped by the Chinese Communist Party through the plenary sessions of the Central Committee and national congresses. The party plays a leading role in establishing the foundations and principles of Chinese communism, mapping strategies for economic development, setting growth targets, and launching reforms. Planning is a key characteristic of centralized, communist economies, and one plan established for the entire country normally contains detailed economic development guidelines for all its regions. China is in its 11th Five year plan guideline (2006-2010) Private Ownership: With production being introduced in the agricultural sector, private ownership of production assets became legal, although many major non-agricultural and industrial facilities were still state-owned and centrally planned. The government also encouraged non-agricultural activities, such as village enterprises in rural areas, promoted more self-management for state-owned enterprises, increased competition in the marketplace and facilitated direct contact between Chinese and foreign trading enterprises. The development of the private sector was allowed and was permitted to compete with state firms in a number of service sectors, and increasingly in infrastructure operations, such as construction. Foreign direct Investment: China has principal attractions like low-cost labor and an enormous domestic market of more than 1. 2 billion consumers. The investment climate has been opened up gradually. In the 1980s, foreigners were restricted to export-oriented joint ventures with Chinese firms. In the early 1990s, they were allowed to manufacture goods for sale in the domestic Chinese market; and by the mid-1990s; the establishment of wholly foreign-owned enterprises was permitted. China's accession to the WTO forces the government to open up the services sector. In 2004, China being one of the fastest-growing economies in the world attracted actual FDI of more than US$60. 6 billion, up 13 per cent from the previous year. As of 2009, China has around US$ 80 billion alone-the highest FDI in the world. Chinese economic stimulus plan: The stimulus package announced by the central government of the People's Republic of China on 9 November 2008 was its biggest move to stop the global financial crisis from hitting the world's third largest economy. The State Council had approved a plan to invest 4 trillion Yuan in infrastructure and social welfare by the end of 2010. The stimulus package will be invested in key areas such as housing, rural infrastructure, transportation, health and education, environment, industry, disaster rebuilding, income-building, tax cuts and finance. Export Driven Economy: China’s export was US $0. 30 trillion higher than its imports. The country mainly drives the economy through its exports. It also had a healthy Foreign Exchange Reserve of US $ 2. 1 trillion and is the 3rd largest GDP with $4. 4 trillion. Government Owned Banks: One of the reasons that China was able to drive its economy through exports was because of the efficient controlling of the money supply by the banks, even in the midst of recession. China has not let its banking system run roughshod over its productive economy. Chinese banks work for the people rather than the reverse. China hasn’t allowed its banking sector to become so powerful, so influential, and so large that it can call the shots or highjack the bailout. In simple terms, the government preferred to answer to its people and put their interests first before any vested interest or group. And that is why Chinese banks are lending to the people and their businesses in record numbers. The Chinese stimulus was large compared to the U. S. and has been much more effectively channeled into employment than that in the U. S. Manufacturing as a low-cost producer: China is well known for its low cost products. The production rates of electronics and other goods are the lowest in China when compared to other countries, which is mainly because of the low cost of production by the manufacturer. The methods used in production such as poke-yoke (error free) have helped them to attain low costs in production. Another reason for low cost production is the cheap labor available in China. Infrastructure: The infrastructure facilities provided by government to the companies contributed immensely to their growth. The period since 1978 saw rapid industrialization from 53% in 1981 to 8% in 2001. FACTORS AFFECTING INDIA’S GROWTH POLITICAL REFORMS: India celebrated 60 years of Independence on August 15, 2007. It is now the second fastest growing major economy, after China. It has also caught media attention because companies like Tata Steel acquired Corus; India is now the second largest investor by number of projects in London; and Mr. L. N. Mittal – an Indian – owns the largest steel company in the world. Visionary Leaders: It all began in 1947, the year of Independence, where India’s first prime minister Pundit Jawaharlal Nehru chose Democracy which was modeled on Westminster. The Soviet Union however presented an economic model that appealed in terms of growth. The Planned Economy: Self – sufficiency and fear of economic dependence on foreigners after two centuries of overseas rule shaped early thinking at Independence. Nehru modeled the economy on Soviet socialist lines of central control and state-run heavy-industry firms dominating the economy to avoid reliance on the West. The License Raj: During the 1950-1990, in order to promote self sufficiency policies of high import tariffs and duties, controls on production through licenses, public sector monopolies and isolating India to the outside world were followed. The unintended results were a shackled economy. Poor economic growth resulted due to the economy stifled by licensing, socialist red tape, excessive bureaucracy and regulation (â€Å"the License Raj†). Many state run monopolies were run by bureaucrats with little commercial experience. Corruption was nurtured. Private industry was starved of badly needed funds that went to state-run firms, often loss makers. The result was the poor allocation of scarce resources to unproductive channels. Competition was curbed and consumers fared badly. Balance of Payments crisis in 1991: Crisis in 1991 pushed the country to near bankruptcy. In return for an IMF bailout, gold was transferred to London as collateral, the Rupee devalued and economic reforms were forced upon India. That low point was the catalyst required to transform the economy through badly needed reforms to unshackle the economy. Controls started to be dismantled, tariffs, duties and taxes progressively lowered, state monopolies broken, the economy was opened to trade and investment, private sector enterprise and competition were encouraged and globalisation was slowly embraced. The reforms process continues today and is accepted by all political parties, but the speed is often held hostage by coalition politics and vested interests. SOCIAL REFORMS Agriculture: India ranks second worldwide in farm output. Agriculture and allied sectors like forestry, logging and fishing accounted for 16. % of the GDP in 2007, employed 60% of the total workforce and despite a steady decline of its share in the GDP, it is still the largest economic sector and plays a significant role in the overall socio-economic development of India. The introduction of high-yielding varieties of seeds after 1965 and the increased use of fertilizers and irrigation known collectively as the Green Revolution, provided the increase in production needed to make India self-sufficient in food grains, thus improving agriculture in India. Removing Socio- Economic Barriers: The biggest challenge in the period of LPG (Liberalization, Privatization and Globalization) in 1991 was the removal of social and economic barriers, through a variety of measures which included family planning, economic welfare programmes, women empowerment initiatives, midday meal scheme, Rural Employment guarantee scheme, Compulsory Education, Union’s intervention in the State etc. Mixed Economy: India has adopted the concept of a mixed economy, in which both the private and public enterprises are given freedom to co-exist. Prior to 1991, the country was grappling itself with unwanted bureaucracy, which tried to hamper the growth in India leading widening gaps in the Indian culture. Population Conscious: A country with a billion marks in population has started to tread on a road in order to reduce the population. Families are encouraged to have 2-3 children, and the government is not too keen on an impenitent restriction in childbirth like China. Progressive Economy: India is a progressive economy, where emphasis is made on the people’s growth. All laws of the country are spearheaded to making India a better place for Indians to live in. Government controls have been reduced on foreign trade and investment; privatization of domestic output has proceeded slowly but steadily over the years. ECONOMIC REFORMS: India Inc s stupendous growth can be attributed to ‘ India Economic Reform ‘ earnest in July 1991. The balance of payments crisis opened the way for an International Monetary Fund (IMF) program that led to major ‘ India Economic Reform ‘. The foreign-exchange reserves recovered quickly and arrested the crisis related IMF and World Bank. Some of these factors which influenced the reforms were: Balance Of Payments Crisis: Balance of Payments crisis in 1991 pushed the country to near bankruptcy. In return for an IMF bailout, gold was transferred to London as collateral, the Rupee devalued and economic reforms were forced upon India. That low point was the catalyst required to transform the economy through badly needed reforms to unshackle the economy. Controls started to be dismantled, tariffs, duties and taxes progressively lowered, state monopolies broken, the economy was opened to trade and investment, private sector enterprise and competition were encouraged and globalization was slowly embraced. Revenue Deficit: India’s biggest problem arose out of the fact that it had huge revenue deficits. From 1950- 1980, the budget was characterized by Revenue surplus and Capital account deficits. The governments voluntarily allowed Revenue deficits use. It was caused by excessive employment in the government sector, mounting subsides, growing interest burden, unequal pricing of goods and services by the private sector. They tackled the problem by downsizing the employees in the public sector. Fiscal deficit: The measures to reduce the fiscal measures were started in 1991 – 1992. They initially reduced the fertilizer and food subsides. Then in 1995 the government reduced public expenditure in social welfare. Deficit Financing: The concept of printing currencies was curbed in tackling problems of Fiscal financing, which was in fact crippling the economy by the means of unwanted money supply. RBI’s measures: The RBI managed to control the money supply in India by Bank rate, Cash reserve ratio, and by Open market operation. Tax Reforms: †¢ Expanding the tax base by including the service sector. †¢ Reducing the rates of direct taxes in India †¢ Abolishing Export subsides †¢ Lowering import duties †¢ Value Added tax †¢ Tax incentives for Infrastructure and Exports Special Economic Zones: is a geographical region that has economic laws that are more liberal than a country's typical economic laws. An SEZ is a trade capacity development tool, with the goal to promote rapid economic growth by using tax and business incentives to attract foreign investment and technology. Today, there are approximately 3,000 SEZs operating in 120 countries, which account for over US$ 600 billion in exports and about 50 million jobs. By offering privileged terms, SEZs attract investment and foreign exchange, spur employment and boost the development of improved technologies and infrastructure. There are 13 functional SEZs and about 61 SEZs, which have been approved and are under the process of establishment in India. The SEZ policy was first introduced in India in April 2000, as a part of the Export-Import (â€Å"EXIM†) policy of India. Considering the need to enhance foreign investment and promote exports from the country and realizing the need that level playing field must be made available to the domestic enterprises and manufacturers to be competitive globally Divestment: The government also started the process of divesting which is a way by which the government reduces its interest in assts for financial objectives. It is mostly done so that the companies would divulge their interests in its core businesses. Chinese Experience: The reforms in India's foreign investment and external trade sectors followed the Chinese experience with external economic reforms. †¢ In the industrial sector, industrial licensing was cut, leaving only 18 industries subject to licensing. Industrial regulation was rationalized. †¢ Abolishing in 1992 the Controller of Capital Issues which decided the prices and number of shares that firms could issue. †¢ Introducing the SEBI Act of 1992 and the Security Laws (Amendment) which gave SEBI the legal authority to register and regulate all security market intermediaries. Starting in 1994 of the National Stock Exchange as a computer-based trading system which served as an instrument to leverage reforms of India's other stock exchanges. The NSE emerged as India's largest exchange by 1996. †¢ Reducing tariffs from an average of 85 percent to 25 percent, and rolling back quantitative controls. (The rupee was made convertible on trade account. ) †¢ Encouraging foreign direct investment by increasing the maximum limit on share of foreign capital in joint ventures from 40 to 51 percent with 100 percent foreign equity permitted in priority sectors. Streamlining procedures for FDI approvals, and in at least 35 industries, automatically approving projects within the limits for foreign participation. †¢ Opening up in 1992 of India's equity markets to investment by foreign institutional investors and permitting Indian firms to raise capital on international markets by issuing Global Depository Receipts (GDRs). †¢ Marginal tax rates were reduced. †¢ Privatization of large, inefficient and loss-inducing government corporations was initiated. FACTORS HAMPERING CHINA’S GROWTH: Low level of education The level of education is an area of concern, where the population is dominant of 30-40 age barrier which causes serious hampering in the economic growth. Language problem One of the main problems that the Chinese people facing is the language barrier. English language is not popular in china and the people in china are behind India in the language proficiency of English. So when they have trade between other countries, the medium of language becomes a problem for them. Poor living conditions One of China’s most serious problems is that over the past 50 years China’s leaders have constructed two China’s: a modern wealthy China and a backward rural poor China. This â€Å"house divided† is a major weakness in contemporary China and to unite this house into a major Asian power will take enormous effort and resources and may require decades to accomplish. Low level of institutional infrastructure and corporate governance: The government is primarily one where the government has maximum amount of control on almost any level of economy. So if greater autonomy is not given, the growth tends to be very slow. Necessity of skilled labor: Even though labor cost is perceived to be low, the skilled labor remains a serious question to be analyzed. The necessity skills are very much necessary in the sectors of manufacturing and industry. The country severely faces many problems with respect to skilled labor. FACTORS HAMPERING INDIA’S GROWTH: Poverty level: According to the a 2005 World Bank estimate, 42% (456 million Indians)of India's falls below the international poverty line of $1. 5 a day (PPP, in nominal terms Rs. 21. 6 a day in urban areas and Rs 14. 3 in rural areas); having reduced from 60% in 1980. According to the criterion used by the Planning Commission of India 24. 5% of the population was living below the poverty line in 2006–2007, down from 51. 3% in 1977–1978, and 36% in 1993-1994 While poverty rates in India are high, they are not on a par with what neighboring Pakistan and Bangladesh ex perience. The main reasons for this are large population, and low literacy level. Lack of Resources Natural resources are derived from the environment. Many of them are essential for our survival while others are used for satisfying our wants. Natural resources may be further classified in different ways. On the basis of origin, resources may be divided into: †¢ Biotic – Biotic resources are those obtained from the biosphere. Minerals such as coal and petroleum are also included in this category because they were formed from decayed organic matter. †¢ Abiotic – Abiotic resources comprise of non-living things. Examples include land, water, air and minerals such as gold, iron, copper, silver etc. lack of hese resources makes a huge difference in the growth of India. So now India has to depend on renewable resources. On the basis of ownership, resources can be classified into: individual, community, national, and international Individual resources: Process Resources The following types of resources can execute an activity within a process. Tangible resource – Conventional resources like plants, equipments , IT infrastructure etc. Intangible resource – Increasingly important resource type including brands and patents and India is lacking these resources. Infrastructure A well-knit and coordinated system of transport plays an important role in the sustained economic growth of a country. India has a well-developed transport network comprising rail, road, coastal shipping, air transport etc. The commercialization of infrastructure is not progressing fast enough to provide decent living conditions to citizens at large. Lack of Capital Domestic demand in India is rising, but the country does not have the matching supply, making it essential for it to rely on foreign capital. India is in the early stages of a new economic cycle†¦ It offers a delectable mix of improving political backdrop, strong structural drivers of growth, and accelerating domestically-driven growth, Unlike China, India is a supply constraint and will have to continue relying on foreign capital†¦ Barring any dislocating effect of global events, foreign inflows should continue although at a slower pace. Political problems The main political problems t. hat India faces is the political instability in the country. The decisions which one political party has taken will be removed by the next government, which leads to instability in the process or activity which is on the way. And other problems are lack of visionary leader, who can lead the country to become a super power. CONCLUSION: Both the countries India and China will grow rapidly, taking a much larger share of global GDP. In both countries, the domestic market will become increasingly attractive to global companies. The division of labor between India and China will become blurred as both countries excel in services and manufacturing. Trade between India and China will expand, enabling companies in both countries to achieve critical mass. For global companies selling in these markets, this means more local competition. Both countries will create new world-class companies that will be competitive with companies based in the West. For some Western companies, this will create new challenges. Both countries, while remaining relatively poor, will experience rapid growth of the middle class, creating vast new opportunities for Western companies to sell in those markets. If the above challenges can be tackled in the perspective of both India and China’s growth, then surely we see both the country’s contribution in the world economy as significantly large. We firmly believe that India and China will become world super powers by 2025, but the question is who is first and who is second†¦ ———————– NITTE Meenakshi Institute of Technology ALBERT JACOB and JAISON JAMES KRISTU JAYANTI COLLEGE, BANGALORE [email  protected] com Emerging Markets in International Trade THEME International Business & the World Economy – Issues and Innovations

A Profile of Me Essay

My name is Anton Polovets. I’m 22. I was born in the Rechitsa city, which is situated not far from Gomel where I live till nowadays. I studied at the school â„â€"4. I entered the International University â€Å"MITSO† after school. I get a lot of new knowledge at the University. I understood the meaning of importance of high education here. Except knowledge I met a lot of interesting people here not only among students. After a few years in the University I got qualification of manager-economist. While getting education I start to work as a sales manager in auto parts shop in Rechitsa. Now I try to do all my best on my work, because I understand that it is very important for me now, not only because of profit but it is a good life experience. But I must say that I satisfied with my profit. Despite lack of free time I have some hobbies. I like to travel, I like to play guitar. I took part in some euro trips which were offered by our University. Every trip was exciting for me. New landscapes, new cultures, new people, I was impressed. I took a lot of photos. Another hobby is guitar. It is my passion. I take guitar lessons some times a week. I like how guitar sounds I like to touch guitar strings, I like to make music, while I make guitar to sound. As Bon Jovi said â€Å"All I have is my guitar, these cords and the truth†. To finish I’d like to say that I have some main aims in my life and I do all my best to reach it.

Critical Description of J.S. Bachs Prelude no. 12 essays

Critical Description of J.S. Bach's Prelude no. 12 essays This piece is taken from Book 2 of J.S. Bachs Forty-Eight Preludes and Fugues (also known as The Well-Tempered Clavier). A prelude could take almost any form, the only conditions being that it should be in the same key as the fugue and form a suitable preparation of the listeners ear and mind for what is to follow, although Bachs preludes were usually a clearly defined musical personality, of which the fugues were logical developments and projections. Prelude no XII is in F minor. Pieces in a minor key are often less cheerful and perhaps darker than those in a major key, and while this prelude is not at all gloomy or dismal, it is somehow quite reflective. The listener does not simply a receive a happy four-minute ditty that is forgotten the moment after the recording finishes (as could be said for some classical pieces that I have heard); it is much more thought-provoking than that. The prelude, and indeed the entire work from which it originates, was designed for a keyboard soloist and from the recording I can well imagine the soloist, even Bach himself playing with great feeling and emotion. This is typically what the audience likes to hear from solo performances, unlike huge orchestras where an individuals efforts can be drowned out by a mass of horns and strings. That is probably why the piece is best suited to the piano rather than any other instrument, such as a violin. Often when I hear violins I expect them to be part of a larger string section, or at least supported by a section. I imagine, perhaps somewhat ignorantly that violins are great for playing fast and furiously, or slowly and serenely, but not for the mid-tempo, middle ground. The piano, however, can achieve this. The performer is instructed to play this piece allegretto espressivo. The listener wants to be able to envisage the pianist playing from the heart, and I think that this performer achieves that. ...

In the World, but not of the world essays

In the World, but not of the world essays To many, the Amish are viewed as misunderstood, shut off from the outside world. Many Americans are angered by the Amish ways and beliefs. Are the Amish trying to defy the American political system or are they just misunderstood. Is it political reasons or religious beliefs that allow them to live in the world, but not of the world? During the Reformation in sixteen-century Europe, Luther and Calvin promoted the concepts of individual freedom and the priesthood of all believers. In what has been called "the radical reformation", some religious reformers took these beliefs to their logical conclusion; they preached that the believer should separate himself from all secular activities. One of the largest groups, the Anabaptists promoted baptism during adulthood after confession of faith, instead of during infancy, total separation of religion and state, and worship services in the home rather than at church. The religious movements that they founded are called "free churches" as contrasted to the state churches that were normal for the time. Their groups were simple associations of adult Christians. Most of them were wiped out in wars or programs of genocide organized by various governments and the main line Protestant and Roman Catholic churches. The Amish people are descendants of the Anabaptist tradition. The Anabaptists eventually split into three groups, the Mennonites of Dutch and Prussian origin, the Hutterian Brethren of Austria, and the Swiss Brethren. The Mennonites are named after Menno Simmons, a Dutch Anabaptist leader. They were severely persecuted and fled to Switzerland and other more remote areas of Europe. The Amish are named after their founder Jakob Amman, who decided to split off from the Swiss Brethren during the late seventeenth-century. Amman based his beliefs and practices on the writings of Simmons and on the 1632 Mennonite Dordrecht Confession of Faith. These divisions did not occur due to differences...

Are Video Games Good For Children Children And Young People Essay

Are Video Games Good For Children Children And Young People Essay For that matter, are video games good for adults. Has anyone ever seen the effects of prolonged exposure to video games and the effects it has on someones family or the community? As a father, I have dealt with negative effects of video games first hand. There have been numerous studies and debates on the subject of video games and the effects, whether positive or negative, they have on children. Video games are not good for children because of the negative effects to a child’s behavior and overall health. Violent tendencies Children that play violent orientated video games have displayed violent tendencies toward others. There have been numerous studies and research conducted, on violent video games played by children, which suggest that children â€Å"may become more aggressive after playing† (Harvard Mental Health Letter, 2010) those types of games and the conclusion behind this reasoning, are three traits of the personality, which are â€Å"high neuroticism† , â€Å"disagreeableness†, and â€Å"low levels of conscientiousness† (Harvard Mental Health Letter, 2010). Playing violent orientated video games cause children to act and think aggressively (Harvard Mental Health Letter, 2010). These conditions may cause children to commit violent acts or behavior. Violent Behavior In addition to increased aggression, â€Å"children who play violent video games are associated with increased violent behavior† (Souccar, 2012). Because of this behavior, there have been multiple despicable acts such as the Virginia Tech shootings where a gunman killed over thirty people in 2007(Lee, Finley, 2011). In 1999, another devastating act in Columbine, Colorado, â€Å"two teenage gunmen† entered a school with weapons, killed twelve students and a teacher, before taking their own lives (Belanger, Wagner, 2011). â€Å"Eric Harris and Dylan Kiebold were frequent players† and program contributors to a violent video game called â €Å"Doom† (Lee, Finley, 2011). Children or teens, that do not commit violent acts, may still display pathologic behavior. Pathologic Behavior Children that play video games exhibit pathologic behavior. There are many warning signs of pathologic behavior, such as â€Å"lying about or hiding how much time is spent playing or disobeying parental limits; losing interest in sports and hobbies; choosing the game over time with friends; and continuing to play despite plummeting grades†(Wagner, 2008). This is a very touchy subject in my household. My thirteen year old step-son has exhibited pathologic behavior because of video games. When the neighbor’s kids come to ask him to play outside, he refuses and has continued playing his games. His grades at school have suffered because he does not concentrate on doing his homework and worries more about playing video games. He has told a few lies, thrown tantrums, kicked walls and our washing machine, and is constantly disres pectful to his siblings, my wife and myself. My step-son has also exhibits signs of video game addiction. Video Game Addictions Children with video game addictions, if left untreated, could have disastrous effects as adults. There are millions of people all over the world who love to play video games, either on game systems or online social media, but that love for the video games turns into tragedy for those with video game addictions. According to Lee and Finley (2011), a couple in Korea went to a local establishment to feed their video game addiction, only to return home over five hours later to find their four month old baby girl dead because she was left alone. Also according to Lee and Finley (2011), parents in Reno, Nevada were arrested â€Å"after their obsession with video games caused them to neglect to feed their two young children†.

Summertime Dues Essay Example | Topics and Well Written Essays - 500 words

Summertime Dues - Essay Example text is narrative since it captures the interest of the reader while focusing on the central theme of the character that students adopt during summer jobs. In addition, Kirn’s text takes the form of an expository text since it informs the reader about summer jobs and the lessons drawn from most of these jobs (Cooper et al. 146). The main theme of Kirn’s text has a basis on the character that students espouse during summer jobs. In this case, Kirn noted students who failed to work during the summer and choose other pursuits found themselves disadvantaged since they failed to learn some traits in modern day work although some of these traits may be mainly negative (364). In this case, Kirn is of the view that these characters developed during summer jobs are crucial in future jobs. Conversely, Kirn is of the view that summer jobs are merely political schemes or entitlement programs hatched to keep unruly kids busy and away from their parents (365). Kirn’s writing style is interesting. In this regard, only a few writers are able to inform as well as hold the reader’s interest all through the text. Kirn is in the group of exceptional writer, and the most interesting part of his style is that the article is informative, and it is thought provoking. In this case, this style of writing makes the reader to beginning questioning the rationale of summer jobs. In addition, the style of writing is interesting since it evokes a feeling of the need to prepare students by teaching them ethical practices before engaging in summer jobs. While it is evident that Kirn’s article is both expository and narrative, it would have been more appropriate for Kirn to strike a balance between the uses of these text types in the article. In this regard, the article appears to be more of a narrative. In effect, Kirn failed to present more facts on summer jobs by primarily dealing with his personal experiences. However, it would have been more appropriate for Kirn to present more

Port Strategy and Development Essay Example | Topics and Well Written Essays - 1500 words

Port Strategy and Development - Essay Example In determining the pricing in ports, the ports management should consider cargo handling, the time in port, port dues and charges. Indeed, the main objectives of port pricing include profit maximization, economic efficiency, macro-economic policy, and income distribution. However, there are many challenges that relate to port pricing like transparency, competition, cost recovery, discrimination, price review vs. yardstick benchmarking simplicity, and cross-subsidy. As such, ports should set their prices by analyzing the complex, network-like structure of principal and intermediary parties in the port, flow of services and related charges, differentiation and price discrimination in the market for port services, demand and supply in the ports, and competition. However, setting and comparison of port prices is becoming a challenge subject to the wide variability in the population of ships and cargoes that each port handles. However, this paper will address the methods and strategies fo r port pricing in the Port of Melbourne in Australia. In doing this, I will review port pricing, port capacity, investment, competition and regulation. The essay will compare port pricing in the Port of Melbourne with port pricing theory and different port prices models. In conclusion, the paper will draw my opinion.

IDP( Managing Financial Resources and Decisions) Essay

IDP( Managing Financial Resources and Decisions) - Essay Example The perfect location and size of the business will be paramount to ensuring that we satisfy our customers, both in London and its surroundings. The flower delivery is done by Fragrant Scent who will make sure that the flowers get to the customers while still fresh and in great quality. The business is also targeting to engage in flower delivery nationwide. The company focuses on creating flower variety of special flower arrangements by investing in broad assortment of gift backset and plants for all occasions. It is our commitment to offer professionally arranged fresh flowers packed in a reusable vase. For effective customer care services, the flowers are hand delivered to ensure utmost care. Our floral shop plans to sell the flowers as a retailer to individuals and corporate clients. The vases and the flowers are sourced on wholesale from a huge online wholesale company. The flower arrangements and the vases preferences are customized according to the requests of the customers. The company focuses on selling most of our flowers online in our website where customers can place their order requests for enhanced convenience. While making the online order requests, customers have an option of specifying if they want their flowers delivered so that they do no need to step out of the house. The flower arrangements will be uniquely done to suit events such as ceremonies, school dances, funerals, holiday parties or weddings. The reason for setting up this business has been driven by the desire to bridge the gap in the flower business as most of the flowers shops do not offer customized flower arrangements and vase designs since traditionally, vases have been standardized. With the advancement in technology where business can be conducted online, we are able to offer the floral services according to the wishes of the customers. Furthermore, London is a huge economy where

Wage determinant Essay Example | Topics and Well Written Essays - 500 words

Wage determinant - Essay Example The main emphasis of this paper is on the role of productivity in determining wage rates with respect to competitive markets such as the U.S. Productivity as a Wage Determinant Productivity is defined as the ratio of input to output. However, productivity can denote both ‘total factor productivity’ and ‘labor productivity’ (Backman). Labor productivity, traditionally, is seen as the output produced per hour/unit of time (Backman). The 1960’s and 1970’s saw a fall in productivity levels in the U.S (Backman). However, the economy recovered in the 1990’s and 1995 onwards was marked by very high levels of productivity. As far as wage markets are concerned, the more appropriate concept is that of labor productivity as it bears direct relation with the wage rate. As far as the U.S is concerned, the importance of this factor in determining wage levels dates back to 1948 when labor contracts underwent positive change throughout the automobile in dustry (Lewin and Kaufman). Later, in the 1960’s another proposition came into play that wage rates in an organization should be linked to the productivity of the economy as a whole (Lewin and Kaufman). This proposition has been heavily debated.

Chinese and American Zombies Essay Example | Topics and Well Written Essays - 1000 words

Chinese and American Zombies - Essay Example The way people turn into Chinese or American zombies has certain similarities and differences. When it comes to American zombies, they were created by Voodoo spells. Thus, voodoo priests (through spells) could make the person their slave. Importantly, the concept of slavery has been very strong for Americans and it is the core of the idea of zombies. Another way of turning into a zombie is to be bitten by one. As far as Chinese zombies are concerned, they are created when a person commits a suicide, they are victims of premature burial or they were killed and want to revenge. The major feature of the concept of the Chinese zombie is their desire to â€Å"absorb life essence†. The difference between the two types of monsters is that American zombies eat flesh whereas Chinese zombies absorb souls of people. Major features of zombies also differ in the two cultures. Thus, American zombies walk slowly, they are almost deprived of the ability to think and they only strive to satisf y their hunger for human flesh. Their bodies often deteriorate or even disintegrate. As for Chinese zombies, they can look at living people if they turned into zombies shortly after their death or they can look like horrific monsters if they were dead for a while before becoming undead. Besides, these creatures’ hair and nails keep growing and they hop with their mouths wide open always ready to grasp a person’ soul (Bai 109). Chinese zombies hop and as the name suggests (stiff bodies) they do not move their limbs.

IDP( Managing Financial Resources and Decisions) Essay

IDP( Managing Financial Resources and Decisions) - Essay Example The perfect location and size of the business will be paramount to ensuring that we satisfy our customers, both in London and its surroundings. The flower delivery is done by Fragrant Scent who will make sure that the flowers get to the customers while still fresh and in great quality. The business is also targeting to engage in flower delivery nationwide. The company focuses on creating flower variety of special flower arrangements by investing in broad assortment of gift backset and plants for all occasions. It is our commitment to offer professionally arranged fresh flowers packed in a reusable vase. For effective customer care services, the flowers are hand delivered to ensure utmost care. Our floral shop plans to sell the flowers as a retailer to individuals and corporate clients. The vases and the flowers are sourced on wholesale from a huge online wholesale company. The flower arrangements and the vases preferences are customized according to the requests of the customers. The company focuses on selling most of our flowers online in our website where customers can place their order requests for enhanced convenience. While making the online order requests, customers have an option of specifying if they want their flowers delivered so that they do no need to step out of the house. The flower arrangements will be uniquely done to suit events such as ceremonies, school dances, funerals, holiday parties or weddings. The reason for setting up this business has been driven by the desire to bridge the gap in the flower business as most of the flowers shops do not offer customized flower arrangements and vase designs since traditionally, vases have been standardized. With the advancement in technology where business can be conducted online, we are able to offer the floral services according to the wishes of the customers. Furthermore, London is a huge economy where

Chinese and American Zombies Essay Example | Topics and Well Written Essays - 1000 words

Chinese and American Zombies - Essay Example The way people turn into Chinese or American zombies has certain similarities and differences. When it comes to American zombies, they were created by Voodoo spells. Thus, voodoo priests (through spells) could make the person their slave. Importantly, the concept of slavery has been very strong for Americans and it is the core of the idea of zombies. Another way of turning into a zombie is to be bitten by one. As far as Chinese zombies are concerned, they are created when a person commits a suicide, they are victims of premature burial or they were killed and want to revenge. The major feature of the concept of the Chinese zombie is their desire to â€Å"absorb life essence†. The difference between the two types of monsters is that American zombies eat flesh whereas Chinese zombies absorb souls of people. Major features of zombies also differ in the two cultures. Thus, American zombies walk slowly, they are almost deprived of the ability to think and they only strive to satisf y their hunger for human flesh. Their bodies often deteriorate or even disintegrate. As for Chinese zombies, they can look at living people if they turned into zombies shortly after their death or they can look like horrific monsters if they were dead for a while before becoming undead. Besides, these creatures’ hair and nails keep growing and they hop with their mouths wide open always ready to grasp a person’ soul (Bai 109). Chinese zombies hop and as the name suggests (stiff bodies) they do not move their limbs.

The Effects of Space Exploration on Modern Society Essay Example for Free

The Effects of Space Exploration on Modern Society Essay Space exploration has been increasing greatly in the last 50 years. It has allowed us to understand the greatness of the universe and the endless possibilities it offers us. Our planet, Earth, is inhabited by approximately 6 billion humans. This is well over our natural carrying capacity (the amount of resources there are to sustain our population) but with techniques such as farming, we have manipulated our resources to provide us with enough food, but alternate solutions are needed. The Cold War was when the space exploration significantly advanced, with the political competition between U. S.A and the U.S.S.R., where the two nations invested highly on technologies to see who could win the space-race. Artificial satellites, a man made device that orbits around Earth or other planets, came along at about 1951, when the Russians launched Sputnik 1 into orbit around Earth. Since then, satellites have developed technologically and now they are so widely used, that almost everyones benefiting from them in everyday life. Through space exploration, a lot has been learnt about Earth and space. When the Hubble Space Telescope was fully operational in 1993, it allowed us to observe our galaxy in ways that were impossible from Earth. Orbiting observatories such as the Advanced X-Ray Astrophysics Facility (AXAF) and the Cosmic Background Explorer (COBE) also contributed to the study of the stars, galaxies and the structure of the universe. These have all brought back images of previously unknown galaxies and stars, and also have increased our awareness of black holes. Several probes have been sent out from Earth, and collected information about the atmospheres of the planets in our solar system. Scientist and environmentalists have learnt a great deal about our planet. With the help of satellites, they can now easily find facts about deforestation, pollution, global warming and climates, giving mankind a broader understanding of our own planet. Space exploration has brought countless benefits to the people. Through the research of NASA , space exploration has indirectly provided us with Compact discs, special UV protection suits for people who can not be exposed to the sun and metal alloys which are now used for aeroplanes, sports equipment and trains. I believe that satellites have been the greatest compensation from the money invested in space exploration. There are currently over 2,200  operational satellites orbiting the Earth, most of them, profiting the people. There are three types of satellites; GPSs, Reconnaissance and Telecommunication satellites. Reconnaissance satellites are the ones that orbit most closely to the Earth, and are equipped with high resolution cameras. More sophisticated Reconnaissance satellites are the spy cameras, which can capture full motion pictures of the Earth. These types of satellites are also sometimes integrated with special sensors for heat, infra-red and ultra-violet; these have very beneficial utilities such as for meteorology. Meteorological satellites have given us the ability to predict weather like never before. Not only is it used for people to know the future temperatures, its also very useful for navigational purposes for ships and aeroplanes, whos pilots can now travel through a safer routes. Another fantastic technology that satellites have given us is the GPS (Global Positioning System). The GPS provides the user with accurate information of their latitude, longitude and velocity, and it was initially designed for military use, but the commerce has found various new applications for the GPS. If a car fitted with the GPS was to be stolen, the company can constantly monitor the location of the vehicle. Some police cars now have GPSs, so in future emergencies, the station would be able to contact the closest police vehicle via radio. Telecommunication satellites communicate by sending each other communicational signals, and therefore being able to send them to any part of the world. Mobile phones, modern television and the internet all depend on telecommunication satellites. Third world countries very probably will oppose space exploration. The rich, who can invest, will only make more money exploring space, increasing the bridge between the poor; while the money could be invested on the development of our own Earth. Other who oppose space exploration could argue that the possible dangers that the unexplored space holds for us, could lead to deaths and losses if not approached with caution. The U.S. governments spends billions of Dollars annually on space exploration. While some of it is a true necessity (i.e. satellites maintenance), I believe that it is mostly avoidable. The money spent on research of other planets could be redirected the problems in our world. Why  go searching for more space, when there is plenty to do here? However, I believe that just the possible future advantages outweigh the drawbacks. Space exploration is a promising solution to the upcoming threat of over population. With the estimated figure of 9 billion humans on earth by the next three decades, mankind needs to find additional resources elsewhere. On the other hand, people may believe that controlling the population is a more viable solution than trying to support its increasing numbers. Space exploration has also provided us with technologies that save lives, such as the prediction of natural hazards such as hurricanes and typhoons. Space exploration has already modified our life styles, simplifying complicated tasks and automating long tedious work. I believe that space exploration should definitely continue. Space holds danger, asteroids have hit earth before, and they will again. Without the ability to reach out across space, the chance to save ourselves might not exist. Space allows us to expand and succeed. Thats one small step for man, one giant leap for mankind.

Demand and Issues of Urban Infrastructure

Demand and Issues of Urban Infrastructure Case Study of The Financial Model For Water Supply Project 1 Introduction 1.1 Rationale/Background According to the RICS recent survey only 4% of the people want to live in Urban Area. This shows the reverse in standard of living requirement which was dream of living in the urban area. What has gone wrong? We know that gypsies used to settle were they could find water. It can be said that water is such an important element for development of any place irrespective of urban or rural area. In India 30% of the total population live in Urban Area and contribute to 60% of the total GDP (Gross Domestic Product). 31% is the increase in the population in last decade compared to 18% in the rural area. So it is necessary to boost urban infrastructure by public as well as private intervention institution. Creativity is the service of the age that generate Ideas that become product and service. The downturn of the economies has advantage of new invention which is also true in case of maximization profit. With increase in the demographic of ages, climate, cultures and immigration it is difficult to take the risk of demand of the urban area. The risk of controlling the demand must be taken by government agency to encourage the private parties for excellence service in Infrastructure. 1.2 Research Aim and Objective 1.2.1 Aim To develop financial model for water supply projects using â€Å"JNNURM toolkit†. This can be used to analyze the relationship between performance and sustainability in PPP method of procurement. 1.2.2 Objective To study the preparation of Urban Infrastructure and Investment plan for the city. To evaluate the feasibility of water supply service in particular. Role of PPP in Urban Infrastructure. 1.2.3 Main Hypothesis Need for Urban Infrastructure and their implementation under governance of JNNURM scheme. To promote sustainable investment and innovative PPP method of procurement increase in the efficiency at municipality level by vigilance. Freedom should be given to private parties to make them comfortable. 1.3 Outline Methodology of Study We will first try to figure out what is the need of the curbing population of that particular city. The cities are in a desperate need of finance for carrying out the reviving projects. But the previous schemes and projects by the municipalities and state governments have failed miserably on the grounds of implementation (ie, time management) and utilization of funds. So there is a need to gather finance for the reviving project for the curbing infrastructure .The story does not end here, there is also a need to govern the utilization of fund. There is a new scheme which is growing popularity by the Government of India along with State government and the municipalities. The buzz word in this scheme is the governance of the project because there is a proper channel how to control the funds issued by the government. Also the government of India will regularly monitor the implementation of the project. Along with this there is a unique proposal of submitting the CDP (City Development Plan) for approval. So our approach would be to find a method of relating the increase in population and need of the same in coming 20 years as well as to arranging and managing finance considering all the factors like inflation, operation and maintenance cost. For this we would study CDPs of various cities and also study their approach in solving the future infrastructure problems. Also we would compare various CDPs and comment on their efficiency. Since we are talking of CDPs preparation and involvement of private parties we will try some case study and prepare the financial appraisal of the same. We would critically analyze whether the project is financially feasible under JNNURM (Jawaharlal Nehru National Urban Renewal Mission) scheme 1.3.1 Literature review and the pilot study This literature review the following subject of India City Development plan Finance scheme for city development plan PPP procurement JNNURM Scheme Pilot Study consists of Theoretical approach. Study of a practical approach to prepare CPD for water supply project under guidelines of JNNURM scheme toolkit. 1.3.2 Main Study Case study:- Feasibility of water supply project under JNNURM scheme using Financial appraisal calculation and role of PPP in such project. The name of the city under case study has been changed due to sensibility of the case as it is live project. The name of the city will not effect on research subject of development of financial appraisal model because scenario is well detailed. The approach of this study by Quantitative and Analytical Comparison of CPD between different states: selected 4nos of states for comparison. The approach is Quantitative by reading the CPD’s of different states and comparing them. 1.3.3 Writing Up Chapter-1 :-Introduction Chapter-2:-City Development Plan Chapter-3:-Private Partner Chapter-4:- JNNURM Scheme Chapter-5:- Case Study Chapter-6:- Comparison of CPD between different states Chapter-7:-Conclusion 2 City Development Plan 2.1 Geographical Information 29 states and 6 union territories* Andaman and Nicobar Islands* Lakshadweep* Andhra Pradesh Madhya Pradesh Arunachal Pradesh Maharashtra Assam Manipur Bihar Meghalaya Chandigarh* Mizoram Chhattisgarh Nagaland Dadra and Nagar Haveli* Orissa Daman and Diu* Pondicherry* Delhi Punjab Goa Rajasthan Gujarat Sikkim Haryana Tamil Nadu Himachal Pradesh Tripura Jammu and Kashmir Uttaranchal Jharkhand Uttar Pradesh Karnataka West Bengal Kerala * Union territory 2.2 Demography Table 1 India: Development Indicator â€Å"According to a United Nations study (1995), by the year 2015, ten of the worlds fifteen largest cities will be in Asia (excluding Japan); three of these will be in India. In 1950, this same region claimed only three of the worlds fifteen largest cities, whilst India claimed only one. These projections suggest that demographic growth in Indias large cities will be high, partly due to national population growth and partly due to immigration. The logistic model used by the United Nations, the World Bank, and other international agencies for the projection of urban population world-wide suggests that India is poised for rapid urbanisation, along with several other countries in south and East Asia. â€Å" SIZE: As per Census 2001, only 28% of the 1.1 billion Indians live in urban areas. Expected to increase to 40% by 2021. About 60% of the country’s GDP originates from urban areas. Allocation of US$12 billion by the Government of India under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) for a period of 7 years for improving urban infrastructure across 63 cities. Key metro cities Mumbai, Kolkata, Delhi, Bengaluru, Chennai, Hyderabad and Ahmedabad allocated 47.5% percent of these funds. STRUCTURE:JNNURM functions under the overall guidance of a National Steering Group (NSG) which comes under the purview of Ministry of Urban Development JNNURM is aimed at fast-track planned development of identified cities. Key highlights Integrated development of urban infrastructure projects Renewal and redevelopment of inner city areas Provision of basic services to urban poor Funds to be channelised through Urban Local Bodies who will be responsible for implementation Implementing agencies to leverage sanctioned funds to attract private sector investments through PPP contracts Outlook Investments of more than US$50 billion would be required in the next 5 years to improve and build urban infrastructure JNNURM is the single largest initiative of Government of India for planned development of cities Opportunity for private players to partner with Urban Local Bodies (ULB) in development of urban infrastructure such as Water supply and sanitation Slum redevelopment Urban transportation including roads, highways, expressways, Mass Rapid Transport Systems (MRTS) and metro projects Solid waste management POTENTIAL: A large component of development work will be through public-private partnership. Water supply and sanitation in urban areas to attract investments over US$30 billion. POLICY 100% FDI under the automatic route permitted for townships, housing, built-up infrastructure and construction-development based projects subject to minimum scale norms JNNURM will provide grants/viability gap funding for projects 2.3 Problems â€Å"Urban Local Bodies (ULBs) of India are the constitutionally provided administrative units that provide basic infrastructure and services in cities and towns. According to Census of India 1991, there are 3255 ULBs in the country classified into four major categories: Nagar Nigams Nagar Palikaa Nagar Panchayats Large urban areas are governed by Nagar Nigams, often simply called corporations. The area under a corporation is further divided up into wards. Individual wards or collections of wards within a corporation sometimes have their own administrative body known as ward committees. Smaller urban areas are governed by Nagar Palika, which are often referred to simply as municipalities. Municipalities are also divided into wards, which may be grouped together into ward councils. One or more representatives are elected to represent each ward.† â€Å"What is worse, many ULBs have accumulated ‘large’ debts and face serious problems in servicing them. Besides the restriction to a small resource base poor planning process, lack of periodical revision of municipal tax rates / user charges, and poor information system and records management are some of the basic weaknesses in the present municipal administration.† The â€Å"Infrastructure Problem  : In spite of its prominent role in Indian economy, urban India faces serious problems due to population pressure, deterioration in the physical environment and quality of life. According to estimates nearly one third of the urban India lives below poverty line. About 15 percent of the urbanites do not have access to safe drinking water and about 50 percent are not covered by sanitary facilities. There is a huge and widening gap between demand and supply of essential services and infrastructure. â€Å" 2.4 Schemes for development of urban development The ongoing schemes of Urban Infrastructure Development in the mega cities, and Integrated Development of Small and Medium Towns (IDSMT) do not meet the requirement of infrastructure development of all cities/towns in the country. There is, therefore, need to have a comprehensive scheme for infrastructure development of all cities/towns in the country. Other scheme like Urban Reforms Incentive Fund (URIF) also needs to be subsumed in the said comprehensive scheme. Funding is linked to reforms which are classified into â€Å"mandatory† and â€Å"optional† as detailed below: Mandatory Reforms—State level: Repeal of Urban Land Ceiling and Regulation Act Reform of Rent Control Laws so as to stimulate private investment in rental housing schemes. Rationalisation of Stamp Duty to bring it down to no more than 5 per cent within the next five years. Introduction of independent regulators for urban services. Mandatory Reforms –Core (at ULBs level): Double entry system of accounting for Urban Local Bodies Adoption of public disclosure law – disclosure of medium-term fiscal plan and quarterly performance reports. Passage of community participation law. All special agencies currently involved in delivering urban civic services to be brought under the supervision of ULBs, thus creating a uniform accountability platform. A Bangalore Action Task Force (BATF) kind of citizen’s technical advisory group should be constituted for each city to guide the process of urban reforms. Urban development authorities discharging city Planning functions and the new city development function should associate the ULBs more closely. Introduction of e-governance, Global Information System (GIS) and Monitoring Information System ( MIS) Reform of Property Tax laws. Levy of reasonable user charges. Optional Reforms: Revision of byelaws to streamline the approval process. Simplification of legal and procedural frameworks for conversion of agricultural land for non-agricultural purposes Introduction of Property Title Certification System in ULBs. Earmarking at least 20-25 per cent of developed land in all housing projects for the poor. Introduction of computerized process of registration of land and property Revision of bye-laws to make rain water harvesting mandatory Bye-laws for reuse of reclaimed water Administrative reforms, i.e. right sizing of the ULBs. It is important to note that the contribution of urban sector to GDP is currently expected to be in the range of 60 percent. In this context, enhancing the productivity of urban areas is now central to the policy pronouncements of the Ministry of Urban Development. Cities hold tremendous potential as engines of economic and social development, creating jobs and generating wealth through economies of scale. They need to be sustained and augmented through the high urban productivity for countrys economic growth. National economic growth and poverty reduction efforts will be increasingly determined by the productivity of these cities and towns. For Indian cities to become growth oriented and productive, it is essential to achieve a world class urban system. This in turn depends on attaining efficiency and equity in the delivery and financing of urban infrastructure. Resource Gap: The India Infrastructure, Report, 1996, assessed the total annual investment needs of water supply, sanitation and roads sectors at Rs. 28,036 crores per year on an average during 1996-2006. Where as funds to that extent are not available. To overcome these constraints and challenges, the Ministry of Urban Development has initiated institutional, fiscal and financial reforms. First generation urban sector reform known as the 74th Constitutional Amendment Act of 1992, recognizes the principles of local self governments and empowers urban local bodies with financial resources through Central Finance Commission and State Finance Commissions. Subsequently, in order to strengthen these local bodies, second generation reform have also been started. In the last decade, enormous progress has been made in removing impediments to efficient investment. Resource Mobilization Effort: In August, 1996, the Central Government guidelines entitled Urban Development Plans Formulation and Implementation were circulated to all State Governments for adoption. These guidelines, apart from other issues, suggest innovative approaches for fiscal resource mobilization. In the backdrop of the New Economic Policy, it was suggested that the traditional system of funding based on Plan and budgetary allocations be reduced and ultimately withdrawn due to fiscal deficit. Subsidies need to be rationalized and urban development plans and projects need to be placed on a commercial format by designing commercially viable urban infrastructure services and area development projects. This can be achieved by restoring a proper match between functions and source of revenue by giving additional tax measures. Other innovative resource mobilization measures include using land as resource, increase in the non-property taxes and using public private partnership in service delivery. 2.4.1 Second Generation Reforms Regulatory Framework: The participation of the private sector in financing and the delivery of infrastructure at the municipal level, especially in the water and sanitation sector, require a regulatory framework to protect consumers, apply environmental standards and support the delivery to the poor. As there are a variety of models of regulation from centralized to decentralized systems, guidelines will be developed at the National level to ensure consistency across the country. Appropriate training programme and capacity support to regulators will also be developed in partnership with the private sector and urban research institutions. Model legislation: The Central Government is in the process of preparing model legislation for facilitating private sector participation in urban infrastructure. This is necessary as the present legislative scenario does not encourage private sector participation in this field. A model Municipal Act which will be recommended to the State Governments would include modification and simplification of Municipal bylaws, provision for enhanced borrowing, allowing the entry of private sector and authorizing concessionaires to penalize users for non payment of tariffs. Municipal Accounting System: The Task Force constituted by the O/o CAG of India had recommended for introduction of accrual basis of accounting system for the urban local bodies (ULBs) and suggested model budgeting and accounting formats for that purpose. The Task Force Report was circulated to all States/UTs for adoption of accrual basis of accounting system as well as the budget and accounting formats. Further to provide a simplified tool kit to the ULBs for recording the accounting entries, Ministry of Urban Development in cooperation with the Office of CAG of India has prepared a National Municipal Accounting Manual (NMAM) and circulated to all States/UTs in January, 2005. The Manual comprehensively details the accounting policies, procedures, guidelines designed to ensure correct, complete and timely recording of municipal transactions and produce accurate and relevant financial reports. The NMAM would help the States prepare their state-level accounting manuals in accordance with their own requirements for use by the ULBs. This initiative is expected not only to enhance the capacities of ULBs in municipal accounting leading to increased transparency and accountability of utilization of public funds for the development of urban sector but also will help in creating an environment in which urban local bodies can play their role more effectively and ensure better service delivery. Public private partnership guidelines: Central Government will develop guidelines for involvement of the private sector in infrastructure, which will ensure competitive biding process in a transparent manner. These guidelines will not only protect the consumers but also ensure integrity of the process. This would support municipalities in designing the PPP process on the lines of the BOT Centre in Philippines or the PPP in the Ministry of Finance in South Africa. Chapter4 included the issues related to PPP. 2.4.2 Fiscal incentives Foreign direct investment (FDI): Hitherto Foreign Investment Promotion Board (FIPB) allowed direct investment in providing urban services on a case to case basis. This scenario has changed with the decision of the Central Government removing restrictions on FDI in urban infrastructure facilities which are now open both under FIPB and the automatic route as per sector specific guidelines. Guidelines have since even issued for FDI in development of integrating township including housing and building material. External assistance: Since independence, externally assisted urban sector projects have accounted for US$ 2300 million. A review of these projects indicated a need to adopt a programme approach rather than a project approach for availing external assistance. It also indicated the need to encourage a multiple donor scenario and tapping low cost funds for urban infrastructure. Tax free municipal bond: Municipal bonds were successfully issued by several Municipal Corporations like, Bangalore, Ahmadabad, Ludhiana, Nagpur, Nasik, and Madurai for raising resources for urban infrastructure. The Central Government had announced tax exemption in case of bonds issued by Municipal / Local Governments. Guidelines were issued by this Ministry on 8.2.2001 for regulating issue of tax free municipal bonds. Under the guidelines, such bonds will be issued for raising resources for capital investment in creation of new infrastructure as well as augmentation of existing systems. Tax free bonds worth Rs. 100 crore by Ahmadabad Municipal Corporation have been permitted for improving infrastructure. Hyderabad Municipal Corporation has also been permitted to issue tax free municipal bonds for Rs. 82.5 crore. Pooled financing for municipal infrastructure: Traditionally, municipal corporations and urban local bodies have relied on subsidized funds for providing urban services which constraints the constraints the introduction of user charges and efficient project operation and maintenance. In view of the huge resource gap, direct access to capital market would now be an accepted viable option. However, access to capital market requires financial discipline and enhanced credit rating. It has been the experience that only bigger municipal corporations are in a position to take the advantage of the resources available in capital market. Medium and smaller municipalities are unable to do so due to weak financial position and lack of capacity to prepare viable project proposals. A State level pooled financing mechanism is being proposed for smaller and medium municipalities. The objective of a State level pooled finance mechanism is to provide a cost effective and efficient approach for smaller and medium sized ULBs to access the domestic capital markets for urban infrastructure and to introduce new institutional arrangements for mobilising Urban Infrastructure Finance. City Restructuring: Government of India is also encouraging citywide reforms and restructuring so as to ensure that cities are managed efficiently and become creditworthy (to attract private finance ) which will enable them to prepare long term plans for infrastructure investments and implement poverty alleviation programmes. Citywide reforms and restructuring will, however, result in significant transaction costs during the period of transition. Leaving cities to finance these costs by themselves will delay and make it difficult to implement these reforms. It is to partly offset this disadvantage that the Ministry of Urban Development is proposing to set up a performance based City Challenge Fund for catalyzing city level economic reform programmes. The resources from the Fund would be given as grants but should ideally be matched by equal allocations either from the cities themselves or from the respective State governments. Access to the fund would be on a competitive basis. Establishment of an urban academy: The proposed Urban Academy is visualized as a centre of excellence in Urban Matters such as urban water supply, sanitation, urban transport, urban governance, municipal finance, etc. It will be a n ideal town-planning habitat, wherein experts from India and abroad can experiment with new layouts, building materials, landscaping, heritage preservation etc., and it will have Synergic links with all other institutions specializing in urban matters. This will coordinate all Training and Capacity Building Initiatives and effort of change management forums. Conclusion In conclusion, it is evident that the New Economic Policy launched in India in 1991-92, did see several important initiatives in the urban sector designed to encourage private sector participation in urban infrastructure projects. These initiatives would need to be taken to their logical conclusion. A series of new Reform Measures are being put together for implementation during 10th Plan Period. Through these, we hope to reverse the declining standards of urban infrastructure in the country. Public Private Partnership Procurement addresses how the industry organizes itself to deliver construction projects. Contracts define the rules governing the relationships between the many organizations involved in each project. Construction industry clients are faced with a perplexing array of skills and resources which must be combined effectively to develop a building (or other constructed facility) that will fulfill their needs. All but the simplest of buildings involve the management, design, assembly and commissioning of large amounts of raw materials using appropriately-skilled labor provided by multiple organizations over a long period of time. The flow of money between Organizations must be formally organized, as must the distribution of responsibility and risk among them. While the technical complexities of the design solution itself are addressed by the specialized skills of construction industry members, the interaction of these organizations must be structured by the selection of an appropriate procurement route and the effective administration (i.e. day to day running) of the associated form of construction contract. At the project outset, clients will usually seek advice on the selection of a procurement route to bring the required organizations together. Figure 1 Example of a cost and Time Overruns in Public Sector Projects. In response to these problems, two key joint industry and government reports were published to stimulate innovation in construction industry practice: the Latham Report in 1994 and the Egan Report in 1998. In the first report – â€Å"Constructing the Team† – Sir Michael Latham commented: â€Å"Implementation begins with clients. Clients are at the core of the Process and their needs must be met by industry† â€Å"Rethinking Construction† proposed five drivers for change in the construction industry: 1. Committed leadership 2. A focus on the customer 3. Integrated processes and teams 4. A quality driven agenda 5. Commitment to people In the public sector, HM Treasury launched the â€Å"Achieving Excellence in Construction† initiative in 1999 to improve the performance of Government in its client role by publishing â€Å"Achieving Excellence in Construction Procurement Guides† [11] which addresses the following issues: 1. Initiating action 2. Project organization 3. Project procurement lifecycle 4. Risk and value management 5. The integrated project team 6. Procurement and contract strategies 7. Whole-life costing 8. Improving performance 9. Design quality 10. Health and safety 11. Sustainability Public sector clients are generally concerned with certainty of budget and quality and, above all else, ensuring public accountability as they are spending public money. Clients who build regularly – perhaps continuously –can be considered experienced Construction projects can be structured in a variety of ways as â€Å"No single procurement route† is suited to all situations and so is required to link the Client’s business requirements before an appropriate project structure can be recommended. The Office of Government Commerce defines these terms as follows [1]: â€Å"Procurement strategy: The procurement strategy identifies the best way of achieving the objectives of the project and value for money, taking account of the risks and constraints, leading to decision about the funding mechanism and asset ownership for the project. The aim of a procurement strategy is to achieve the optimum balance of risk, control and funding for a particular project.† â€Å"Procurement route: The procurement route delivers the procurement strategy. It included the contract strategy that will best meet the Client’s needs. An integrated procurement route ensures that design, construction, operations and maintenance are considered as a whole; it also ensures that the delivery team work together as an integrated project team.† Figure 2 The relationship of procurement strategy to procurement route â€Å"A Public Private Partnership (PPP) is an umbrella term for arrangements agreed – often with legal force – between public and private sector organisations to their mutual benefit. The Private Finance Initiative (PFI) is one form of PPP developed by the Government in which the public and private sectors join to design, build or refurbish, finance and operate new or improved facilities and services to the general public. PFI schemes generally involve a consortium of private sector companies, who collaborate to form a Special Purpose Vehicle (SPV) which then contracts with the public sector to provide services such as hospitals, schools and roads to specifications provided by public sector bodies.† 3.1 Procurement method issues Construction industry has complex analysis mere by dual component of land and building. It has fuzz boundaries. The fragmentation of the industry between contractor, consultant, project management etc creates the industry highly volatile. It can also be argued the reduction of professionalism if it is at only contractor. So it is expected to carry multitude of negative aspects of Investment which is derived from present consumption. In Economics term Investment is the process of trading present consumption for new capital. Present trading can be alternative to investment in other than the construction industry. Individual participant have significant approach to price and quantity. â€Å"This definition illustrates several key characteristics of PFI schemes: A service, rather than capital assets, is purchased. PFI schemes run for a long time. The public sector typically requires procures the provision of a service over a 25 to 35 year period. Buildings or other infrastructure is usually constructed by the private sector as a consequence of the need to provide the agreed service. The PFI agreement will define the level of service required (such as providing a maintained, lit, warm, clean and catered hospital, for example) and the private sector will finance the design and construction of new or adapted facilitates as necessary to accommodate that service. Because the public sector is purchasing a service, rather than assets, it will not own those assets unless the transfer of their ownership is agreed when setting up the scheme (see Section 6.6.5). Subject to any specification imposed by the public sector client, the private sector is free to use whatever means it considers appropriate when constructing the assets. This can lead to design quality and performance shortcomings (see Section 6.6.4). The private sector puts itself at risk when securing the finance required to construct any capital assets required by the scheme. In return, it will expect to be paid for managing this risk. This raises the overall cost of PFI schemes above that of non-PFI procurement where financing risks are minimal as they are borne by the public sector with funding traditionally provided and underwritten by the Treasury.† 3.2 Role of PPP in Infrastructures â€Å"In the projects from the Public Private Partnership (PPP) and Private Finance Initative (PFI) programmes, the public sector contracts to purchase services – rather than any particular building – from the private sector in the long term. The delivery Demand and Issues of Urban Infrastructure Demand and Issues of Urban Infrastructure Case Study of The Financial Model For Water Supply Project 1 Introduction 1.1 Rationale/Background According to the RICS recent survey only 4% of the people want to live in Urban Area. This shows the reverse in standard of living requirement which was dream of living in the urban area. What has gone wrong? We know that gypsies used to settle were they could find water. It can be said that water is such an important element for development of any place irrespective of urban or rural area. In India 30% of the total population live in Urban Area and contribute to 60% of the total GDP (Gross Domestic Product). 31% is the increase in the population in last decade compared to 18% in the rural area. So it is necessary to boost urban infrastructure by public as well as private intervention institution. Creativity is the service of the age that generate Ideas that become product and service. The downturn of the economies has advantage of new invention which is also true in case of maximization profit. With increase in the demographic of ages, climate, cultures and immigration it is difficult to take the risk of demand of the urban area. The risk of controlling the demand must be taken by government agency to encourage the private parties for excellence service in Infrastructure. 1.2 Research Aim and Objective 1.2.1 Aim To develop financial model for water supply projects using â€Å"JNNURM toolkit†. This can be used to analyze the relationship between performance and sustainability in PPP method of procurement. 1.2.2 Objective To study the preparation of Urban Infrastructure and Investment plan for the city. To evaluate the feasibility of water supply service in particular. Role of PPP in Urban Infrastructure. 1.2.3 Main Hypothesis Need for Urban Infrastructure and their implementation under governance of JNNURM scheme. To promote sustainable investment and innovative PPP method of procurement increase in the efficiency at municipality level by vigilance. Freedom should be given to private parties to make them comfortable. 1.3 Outline Methodology of Study We will first try to figure out what is the need of the curbing population of that particular city. The cities are in a desperate need of finance for carrying out the reviving projects. But the previous schemes and projects by the municipalities and state governments have failed miserably on the grounds of implementation (ie, time management) and utilization of funds. So there is a need to gather finance for the reviving project for the curbing infrastructure .The story does not end here, there is also a need to govern the utilization of fund. There is a new scheme which is growing popularity by the Government of India along with State government and the municipalities. The buzz word in this scheme is the governance of the project because there is a proper channel how to control the funds issued by the government. Also the government of India will regularly monitor the implementation of the project. Along with this there is a unique proposal of submitting the CDP (City Development Plan) for approval. So our approach would be to find a method of relating the increase in population and need of the same in coming 20 years as well as to arranging and managing finance considering all the factors like inflation, operation and maintenance cost. For this we would study CDPs of various cities and also study their approach in solving the future infrastructure problems. Also we would compare various CDPs and comment on their efficiency. Since we are talking of CDPs preparation and involvement of private parties we will try some case study and prepare the financial appraisal of the same. We would critically analyze whether the project is financially feasible under JNNURM (Jawaharlal Nehru National Urban Renewal Mission) scheme 1.3.1 Literature review and the pilot study This literature review the following subject of India City Development plan Finance scheme for city development plan PPP procurement JNNURM Scheme Pilot Study consists of Theoretical approach. Study of a practical approach to prepare CPD for water supply project under guidelines of JNNURM scheme toolkit. 1.3.2 Main Study Case study:- Feasibility of water supply project under JNNURM scheme using Financial appraisal calculation and role of PPP in such project. The name of the city under case study has been changed due to sensibility of the case as it is live project. The name of the city will not effect on research subject of development of financial appraisal model because scenario is well detailed. The approach of this study by Quantitative and Analytical Comparison of CPD between different states: selected 4nos of states for comparison. The approach is Quantitative by reading the CPD’s of different states and comparing them. 1.3.3 Writing Up Chapter-1 :-Introduction Chapter-2:-City Development Plan Chapter-3:-Private Partner Chapter-4:- JNNURM Scheme Chapter-5:- Case Study Chapter-6:- Comparison of CPD between different states Chapter-7:-Conclusion 2 City Development Plan 2.1 Geographical Information 29 states and 6 union territories* Andaman and Nicobar Islands* Lakshadweep* Andhra Pradesh Madhya Pradesh Arunachal Pradesh Maharashtra Assam Manipur Bihar Meghalaya Chandigarh* Mizoram Chhattisgarh Nagaland Dadra and Nagar Haveli* Orissa Daman and Diu* Pondicherry* Delhi Punjab Goa Rajasthan Gujarat Sikkim Haryana Tamil Nadu Himachal Pradesh Tripura Jammu and Kashmir Uttaranchal Jharkhand Uttar Pradesh Karnataka West Bengal Kerala * Union territory 2.2 Demography Table 1 India: Development Indicator â€Å"According to a United Nations study (1995), by the year 2015, ten of the worlds fifteen largest cities will be in Asia (excluding Japan); three of these will be in India. In 1950, this same region claimed only three of the worlds fifteen largest cities, whilst India claimed only one. These projections suggest that demographic growth in Indias large cities will be high, partly due to national population growth and partly due to immigration. The logistic model used by the United Nations, the World Bank, and other international agencies for the projection of urban population world-wide suggests that India is poised for rapid urbanisation, along with several other countries in south and East Asia. â€Å" SIZE: As per Census 2001, only 28% of the 1.1 billion Indians live in urban areas. Expected to increase to 40% by 2021. About 60% of the country’s GDP originates from urban areas. Allocation of US$12 billion by the Government of India under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) for a period of 7 years for improving urban infrastructure across 63 cities. Key metro cities Mumbai, Kolkata, Delhi, Bengaluru, Chennai, Hyderabad and Ahmedabad allocated 47.5% percent of these funds. STRUCTURE:JNNURM functions under the overall guidance of a National Steering Group (NSG) which comes under the purview of Ministry of Urban Development JNNURM is aimed at fast-track planned development of identified cities. Key highlights Integrated development of urban infrastructure projects Renewal and redevelopment of inner city areas Provision of basic services to urban poor Funds to be channelised through Urban Local Bodies who will be responsible for implementation Implementing agencies to leverage sanctioned funds to attract private sector investments through PPP contracts Outlook Investments of more than US$50 billion would be required in the next 5 years to improve and build urban infrastructure JNNURM is the single largest initiative of Government of India for planned development of cities Opportunity for private players to partner with Urban Local Bodies (ULB) in development of urban infrastructure such as Water supply and sanitation Slum redevelopment Urban transportation including roads, highways, expressways, Mass Rapid Transport Systems (MRTS) and metro projects Solid waste management POTENTIAL: A large component of development work will be through public-private partnership. Water supply and sanitation in urban areas to attract investments over US$30 billion. POLICY 100% FDI under the automatic route permitted for townships, housing, built-up infrastructure and construction-development based projects subject to minimum scale norms JNNURM will provide grants/viability gap funding for projects 2.3 Problems â€Å"Urban Local Bodies (ULBs) of India are the constitutionally provided administrative units that provide basic infrastructure and services in cities and towns. According to Census of India 1991, there are 3255 ULBs in the country classified into four major categories: Nagar Nigams Nagar Palikaa Nagar Panchayats Large urban areas are governed by Nagar Nigams, often simply called corporations. The area under a corporation is further divided up into wards. Individual wards or collections of wards within a corporation sometimes have their own administrative body known as ward committees. Smaller urban areas are governed by Nagar Palika, which are often referred to simply as municipalities. Municipalities are also divided into wards, which may be grouped together into ward councils. One or more representatives are elected to represent each ward.† â€Å"What is worse, many ULBs have accumulated ‘large’ debts and face serious problems in servicing them. Besides the restriction to a small resource base poor planning process, lack of periodical revision of municipal tax rates / user charges, and poor information system and records management are some of the basic weaknesses in the present municipal administration.† The â€Å"Infrastructure Problem  : In spite of its prominent role in Indian economy, urban India faces serious problems due to population pressure, deterioration in the physical environment and quality of life. According to estimates nearly one third of the urban India lives below poverty line. About 15 percent of the urbanites do not have access to safe drinking water and about 50 percent are not covered by sanitary facilities. There is a huge and widening gap between demand and supply of essential services and infrastructure. â€Å" 2.4 Schemes for development of urban development The ongoing schemes of Urban Infrastructure Development in the mega cities, and Integrated Development of Small and Medium Towns (IDSMT) do not meet the requirement of infrastructure development of all cities/towns in the country. There is, therefore, need to have a comprehensive scheme for infrastructure development of all cities/towns in the country. Other scheme like Urban Reforms Incentive Fund (URIF) also needs to be subsumed in the said comprehensive scheme. Funding is linked to reforms which are classified into â€Å"mandatory† and â€Å"optional† as detailed below: Mandatory Reforms—State level: Repeal of Urban Land Ceiling and Regulation Act Reform of Rent Control Laws so as to stimulate private investment in rental housing schemes. Rationalisation of Stamp Duty to bring it down to no more than 5 per cent within the next five years. Introduction of independent regulators for urban services. Mandatory Reforms –Core (at ULBs level): Double entry system of accounting for Urban Local Bodies Adoption of public disclosure law – disclosure of medium-term fiscal plan and quarterly performance reports. Passage of community participation law. All special agencies currently involved in delivering urban civic services to be brought under the supervision of ULBs, thus creating a uniform accountability platform. A Bangalore Action Task Force (BATF) kind of citizen’s technical advisory group should be constituted for each city to guide the process of urban reforms. Urban development authorities discharging city Planning functions and the new city development function should associate the ULBs more closely. Introduction of e-governance, Global Information System (GIS) and Monitoring Information System ( MIS) Reform of Property Tax laws. Levy of reasonable user charges. Optional Reforms: Revision of byelaws to streamline the approval process. Simplification of legal and procedural frameworks for conversion of agricultural land for non-agricultural purposes Introduction of Property Title Certification System in ULBs. Earmarking at least 20-25 per cent of developed land in all housing projects for the poor. Introduction of computerized process of registration of land and property Revision of bye-laws to make rain water harvesting mandatory Bye-laws for reuse of reclaimed water Administrative reforms, i.e. right sizing of the ULBs. It is important to note that the contribution of urban sector to GDP is currently expected to be in the range of 60 percent. In this context, enhancing the productivity of urban areas is now central to the policy pronouncements of the Ministry of Urban Development. Cities hold tremendous potential as engines of economic and social development, creating jobs and generating wealth through economies of scale. They need to be sustained and augmented through the high urban productivity for countrys economic growth. National economic growth and poverty reduction efforts will be increasingly determined by the productivity of these cities and towns. For Indian cities to become growth oriented and productive, it is essential to achieve a world class urban system. This in turn depends on attaining efficiency and equity in the delivery and financing of urban infrastructure. Resource Gap: The India Infrastructure, Report, 1996, assessed the total annual investment needs of water supply, sanitation and roads sectors at Rs. 28,036 crores per year on an average during 1996-2006. Where as funds to that extent are not available. To overcome these constraints and challenges, the Ministry of Urban Development has initiated institutional, fiscal and financial reforms. First generation urban sector reform known as the 74th Constitutional Amendment Act of 1992, recognizes the principles of local self governments and empowers urban local bodies with financial resources through Central Finance Commission and State Finance Commissions. Subsequently, in order to strengthen these local bodies, second generation reform have also been started. In the last decade, enormous progress has been made in removing impediments to efficient investment. Resource Mobilization Effort: In August, 1996, the Central Government guidelines entitled Urban Development Plans Formulation and Implementation were circulated to all State Governments for adoption. These guidelines, apart from other issues, suggest innovative approaches for fiscal resource mobilization. In the backdrop of the New Economic Policy, it was suggested that the traditional system of funding based on Plan and budgetary allocations be reduced and ultimately withdrawn due to fiscal deficit. Subsidies need to be rationalized and urban development plans and projects need to be placed on a commercial format by designing commercially viable urban infrastructure services and area development projects. This can be achieved by restoring a proper match between functions and source of revenue by giving additional tax measures. Other innovative resource mobilization measures include using land as resource, increase in the non-property taxes and using public private partnership in service delivery. 2.4.1 Second Generation Reforms Regulatory Framework: The participation of the private sector in financing and the delivery of infrastructure at the municipal level, especially in the water and sanitation sector, require a regulatory framework to protect consumers, apply environmental standards and support the delivery to the poor. As there are a variety of models of regulation from centralized to decentralized systems, guidelines will be developed at the National level to ensure consistency across the country. Appropriate training programme and capacity support to regulators will also be developed in partnership with the private sector and urban research institutions. Model legislation: The Central Government is in the process of preparing model legislation for facilitating private sector participation in urban infrastructure. This is necessary as the present legislative scenario does not encourage private sector participation in this field. A model Municipal Act which will be recommended to the State Governments would include modification and simplification of Municipal bylaws, provision for enhanced borrowing, allowing the entry of private sector and authorizing concessionaires to penalize users for non payment of tariffs. Municipal Accounting System: The Task Force constituted by the O/o CAG of India had recommended for introduction of accrual basis of accounting system for the urban local bodies (ULBs) and suggested model budgeting and accounting formats for that purpose. The Task Force Report was circulated to all States/UTs for adoption of accrual basis of accounting system as well as the budget and accounting formats. Further to provide a simplified tool kit to the ULBs for recording the accounting entries, Ministry of Urban Development in cooperation with the Office of CAG of India has prepared a National Municipal Accounting Manual (NMAM) and circulated to all States/UTs in January, 2005. The Manual comprehensively details the accounting policies, procedures, guidelines designed to ensure correct, complete and timely recording of municipal transactions and produce accurate and relevant financial reports. The NMAM would help the States prepare their state-level accounting manuals in accordance with their own requirements for use by the ULBs. This initiative is expected not only to enhance the capacities of ULBs in municipal accounting leading to increased transparency and accountability of utilization of public funds for the development of urban sector but also will help in creating an environment in which urban local bodies can play their role more effectively and ensure better service delivery. Public private partnership guidelines: Central Government will develop guidelines for involvement of the private sector in infrastructure, which will ensure competitive biding process in a transparent manner. These guidelines will not only protect the consumers but also ensure integrity of the process. This would support municipalities in designing the PPP process on the lines of the BOT Centre in Philippines or the PPP in the Ministry of Finance in South Africa. Chapter4 included the issues related to PPP. 2.4.2 Fiscal incentives Foreign direct investment (FDI): Hitherto Foreign Investment Promotion Board (FIPB) allowed direct investment in providing urban services on a case to case basis. This scenario has changed with the decision of the Central Government removing restrictions on FDI in urban infrastructure facilities which are now open both under FIPB and the automatic route as per sector specific guidelines. Guidelines have since even issued for FDI in development of integrating township including housing and building material. External assistance: Since independence, externally assisted urban sector projects have accounted for US$ 2300 million. A review of these projects indicated a need to adopt a programme approach rather than a project approach for availing external assistance. It also indicated the need to encourage a multiple donor scenario and tapping low cost funds for urban infrastructure. Tax free municipal bond: Municipal bonds were successfully issued by several Municipal Corporations like, Bangalore, Ahmadabad, Ludhiana, Nagpur, Nasik, and Madurai for raising resources for urban infrastructure. The Central Government had announced tax exemption in case of bonds issued by Municipal / Local Governments. Guidelines were issued by this Ministry on 8.2.2001 for regulating issue of tax free municipal bonds. Under the guidelines, such bonds will be issued for raising resources for capital investment in creation of new infrastructure as well as augmentation of existing systems. Tax free bonds worth Rs. 100 crore by Ahmadabad Municipal Corporation have been permitted for improving infrastructure. Hyderabad Municipal Corporation has also been permitted to issue tax free municipal bonds for Rs. 82.5 crore. Pooled financing for municipal infrastructure: Traditionally, municipal corporations and urban local bodies have relied on subsidized funds for providing urban services which constraints the constraints the introduction of user charges and efficient project operation and maintenance. In view of the huge resource gap, direct access to capital market would now be an accepted viable option. However, access to capital market requires financial discipline and enhanced credit rating. It has been the experience that only bigger municipal corporations are in a position to take the advantage of the resources available in capital market. Medium and smaller municipalities are unable to do so due to weak financial position and lack of capacity to prepare viable project proposals. A State level pooled financing mechanism is being proposed for smaller and medium municipalities. The objective of a State level pooled finance mechanism is to provide a cost effective and efficient approach for smaller and medium sized ULBs to access the domestic capital markets for urban infrastructure and to introduce new institutional arrangements for mobilising Urban Infrastructure Finance. City Restructuring: Government of India is also encouraging citywide reforms and restructuring so as to ensure that cities are managed efficiently and become creditworthy (to attract private finance ) which will enable them to prepare long term plans for infrastructure investments and implement poverty alleviation programmes. Citywide reforms and restructuring will, however, result in significant transaction costs during the period of transition. Leaving cities to finance these costs by themselves will delay and make it difficult to implement these reforms. It is to partly offset this disadvantage that the Ministry of Urban Development is proposing to set up a performance based City Challenge Fund for catalyzing city level economic reform programmes. The resources from the Fund would be given as grants but should ideally be matched by equal allocations either from the cities themselves or from the respective State governments. Access to the fund would be on a competitive basis. Establishment of an urban academy: The proposed Urban Academy is visualized as a centre of excellence in Urban Matters such as urban water supply, sanitation, urban transport, urban governance, municipal finance, etc. It will be a n ideal town-planning habitat, wherein experts from India and abroad can experiment with new layouts, building materials, landscaping, heritage preservation etc., and it will have Synergic links with all other institutions specializing in urban matters. This will coordinate all Training and Capacity Building Initiatives and effort of change management forums. Conclusion In conclusion, it is evident that the New Economic Policy launched in India in 1991-92, did see several important initiatives in the urban sector designed to encourage private sector participation in urban infrastructure projects. These initiatives would need to be taken to their logical conclusion. A series of new Reform Measures are being put together for implementation during 10th Plan Period. Through these, we hope to reverse the declining standards of urban infrastructure in the country. Public Private Partnership Procurement addresses how the industry organizes itself to deliver construction projects. Contracts define the rules governing the relationships between the many organizations involved in each project. Construction industry clients are faced with a perplexing array of skills and resources which must be combined effectively to develop a building (or other constructed facility) that will fulfill their needs. All but the simplest of buildings involve the management, design, assembly and commissioning of large amounts of raw materials using appropriately-skilled labor provided by multiple organizations over a long period of time. The flow of money between Organizations must be formally organized, as must the distribution of responsibility and risk among them. While the technical complexities of the design solution itself are addressed by the specialized skills of construction industry members, the interaction of these organizations must be structured by the selection of an appropriate procurement route and the effective administration (i.e. day to day running) of the associated form of construction contract. At the project outset, clients will usually seek advice on the selection of a procurement route to bring the required organizations together. Figure 1 Example of a cost and Time Overruns in Public Sector Projects. In response to these problems, two key joint industry and government reports were published to stimulate innovation in construction industry practice: the Latham Report in 1994 and the Egan Report in 1998. In the first report – â€Å"Constructing the Team† – Sir Michael Latham commented: â€Å"Implementation begins with clients. Clients are at the core of the Process and their needs must be met by industry† â€Å"Rethinking Construction† proposed five drivers for change in the construction industry: 1. Committed leadership 2. A focus on the customer 3. Integrated processes and teams 4. A quality driven agenda 5. Commitment to people In the public sector, HM Treasury launched the â€Å"Achieving Excellence in Construction† initiative in 1999 to improve the performance of Government in its client role by publishing â€Å"Achieving Excellence in Construction Procurement Guides† [11] which addresses the following issues: 1. Initiating action 2. Project organization 3. Project procurement lifecycle 4. Risk and value management 5. The integrated project team 6. Procurement and contract strategies 7. Whole-life costing 8. Improving performance 9. Design quality 10. Health and safety 11. Sustainability Public sector clients are generally concerned with certainty of budget and quality and, above all else, ensuring public accountability as they are spending public money. Clients who build regularly – perhaps continuously –can be considered experienced Construction projects can be structured in a variety of ways as â€Å"No single procurement route† is suited to all situations and so is required to link the Client’s business requirements before an appropriate project structure can be recommended. The Office of Government Commerce defines these terms as follows [1]: â€Å"Procurement strategy: The procurement strategy identifies the best way of achieving the objectives of the project and value for money, taking account of the risks and constraints, leading to decision about the funding mechanism and asset ownership for the project. The aim of a procurement strategy is to achieve the optimum balance of risk, control and funding for a particular project.† â€Å"Procurement route: The procurement route delivers the procurement strategy. It included the contract strategy that will best meet the Client’s needs. An integrated procurement route ensures that design, construction, operations and maintenance are considered as a whole; it also ensures that the delivery team work together as an integrated project team.† Figure 2 The relationship of procurement strategy to procurement route â€Å"A Public Private Partnership (PPP) is an umbrella term for arrangements agreed – often with legal force – between public and private sector organisations to their mutual benefit. The Private Finance Initiative (PFI) is one form of PPP developed by the Government in which the public and private sectors join to design, build or refurbish, finance and operate new or improved facilities and services to the general public. PFI schemes generally involve a consortium of private sector companies, who collaborate to form a Special Purpose Vehicle (SPV) which then contracts with the public sector to provide services such as hospitals, schools and roads to specifications provided by public sector bodies.† 3.1 Procurement method issues Construction industry has complex analysis mere by dual component of land and building. It has fuzz boundaries. The fragmentation of the industry between contractor, consultant, project management etc creates the industry highly volatile. It can also be argued the reduction of professionalism if it is at only contractor. So it is expected to carry multitude of negative aspects of Investment which is derived from present consumption. In Economics term Investment is the process of trading present consumption for new capital. Present trading can be alternative to investment in other than the construction industry. Individual participant have significant approach to price and quantity. â€Å"This definition illustrates several key characteristics of PFI schemes: A service, rather than capital assets, is purchased. PFI schemes run for a long time. The public sector typically requires procures the provision of a service over a 25 to 35 year period. Buildings or other infrastructure is usually constructed by the private sector as a consequence of the need to provide the agreed service. The PFI agreement will define the level of service required (such as providing a maintained, lit, warm, clean and catered hospital, for example) and the private sector will finance the design and construction of new or adapted facilitates as necessary to accommodate that service. Because the public sector is purchasing a service, rather than assets, it will not own those assets unless the transfer of their ownership is agreed when setting up the scheme (see Section 6.6.5). Subject to any specification imposed by the public sector client, the private sector is free to use whatever means it considers appropriate when constructing the assets. This can lead to design quality and performance shortcomings (see Section 6.6.4). The private sector puts itself at risk when securing the finance required to construct any capital assets required by the scheme. In return, it will expect to be paid for managing this risk. This raises the overall cost of PFI schemes above that of non-PFI procurement where financing risks are minimal as they are borne by the public sector with funding traditionally provided and underwritten by the Treasury.† 3.2 Role of PPP in Infrastructures â€Å"In the projects from the Public Private Partnership (PPP) and Private Finance Initative (PFI) programmes, the public sector contracts to purchase services – rather than any particular building – from the private sector in the long term. The delivery