Critically examine the basic formulations of the Harrod-Domar model of economic growth. How does the Harrod model explain the occurrence of trade cycles?

The basic formulations of the Harood-Domar Model of economic growth are summarized as follows: -

(i)Investment is the central theme of the HDM. It plays a dual role. On the one hand it generates income and on the other it creates productive capacity.

(ii)The increased capacity results in greater output and greater employment, depending on the behavior of the income.

(iii)Condition regarding the behavior of income can be expressed in terms of growth-rates i.e , G, Gw and Gn. The equality between these growth rates would ensure full employment of labour and full utilization of capital stock.

(iv)These conditions, however, designate only a steady-line of growth. The actual growth rate may differ iron the warranted growth rate. If the actual growth rate is higher than the warranted rate of growth, the economy will experience cumulative inflation. If the actual growth rate is lower than the warranted growth rate, the economy will hurtle towards cumulative deflation.

(v)The business-cycles are viewed as the deviations from the path of steady growth. These deviations cannot go on indefinitely. There are constraints on upper and lower limits. The “full employment ceiling” acts an upper limit and autonomous investment and consumption act as a lower limit. The actual growth-rate fluctuates between these two limits.

Harrod has used his model to explain trade cycles. In the recovery phase, because of the existence of unemployed resources, G>Gn. When full employment is reached G = Gn. If Gw exceeds Gn at the full employment, slump is inevitable. Since G had to fall below Gw, it will, for the time being, be driven progressively downwards. Further, G itself fluctuated during the course of the business cycle. Savings as a fraction of income, though fairly steady in the long run, fluctuate in the short run. In the short run, savings tend to be residual between the earning and normal consumption. Companies, also, are likely to save large portion of their short-period increased in net receipts. Thus, even if Gw is normally below Gn, it is likely to ride above Gn in the later stages of advance, and, if it so happens, a vicious spiral of depression is inevitable when full employment is reached. If Gw does not ride above Gn in the course of advance, there would be continued pressure to advance when full employment is reached; this would lead to inflation and consequently, sooner or later, to a rise of Gw above Gn, resulting ultimately into a vicious spiral of depression. Actually, G may be reduced before the employment is reached because of immobilities, frictions, and bottlenecks and, if it so happens, depression may come before full employment is reached. If Gw is far above Gn, G may never rise far above Gw during the revival and the depression may result long before full employment is reached.

Democracy and its developments.

Appropriately the word ‘Democracy’ is of Greek origin .the Greek word Democratic is a combination of the words demos (meaning the people) and kratos (meaning power or rule).so democracy in both the ancient and modern worlds is the idea of rule by the people, whether directly-through personal participation or indirectly, through elected representative. Democracy was achieved through struggle and against considerable odds. Indeed, the struggle for democracy everywhere and throughout history, has simultaneously a struggle against political inequality based on, and justified by, inequalities of birth and wealth. A democracy is in few forms like as historically, theoretically, and geographically. Even as it has become the most dominant principle of modern political system, democracy is still fraught with many new and contemporary challenges. The history of democracy tends to begin with an invocation to its origins in ancient Greece. Democracy in the modern world bears any similarity with democracy in ancient Greece. It has been, and continues to remain, one of the most contested concepts in the political vocabulary of the modern world. It means many different things to different people, but the fact that all manner of political regimes have sought to appropriate the label ‘democracy’ to legitimize them, clearly shows that it carries a positive normative connotation. Rather like justice and freedom then democracy is widely perceived to be a good thing, and a desirable attribute for a polity to process. Task of determining which democracies are truly worthy of the name, or of distinguishing between polities in terms of the extent of democracy they have achieved, is a difficult if not impossible one. But judging contemporary democracies is so fraught with difficulty; the task of describing the evaluation of democracy in the modern world is no less contentious. Historians disagree about the origins of modern democratic ideas, as also about the emergence of democratic institutions. The French declaration of the rights of man was an early statement of democratic principles, while for others it was a manifesto of the bourgeois class which. Though opposed to hierarchy based on nobility, was neither egalitarian nor democratic. By jean-Jacques Rousseau democracy is that, with his faith in the direct participation of the citizens in the making of laws, who is the premier philosopher of democracy. John Locke is for some the first significant theorist of liberal-democratic ideas, for others he is at best a theorist of constitutional government. But the 2500 years of (1992) democracies were enthusiastically celebrated all over the world. This anniversaries statesman, founding of nations are quite commonly celebrated. Democracy in modern world is quite different from democracy as it was practiced in ancient Greece 2500 years ago. The practice of democracy is in the modern world having varied greatly. Each of the nation-states that today claims to be democratic has arrived at its own distinctive form of democracy by a quite distinctive route. History, society and economy are powerful influences shaping democracy, as are democratic ideas and ideal. It is a mix of material and the ideological that must explain democracy anywhere. Finally we can say that, the struggle for democracy is never concluded; it just constantly assumes new forms.

Colonial policy towards science education in India.

The colonial rule never gave any importance to science education in India. The British could well understand that if Indians were able to get scientific knowledge then they will no longer be dependent on the foreigners and began to find out solutions of their own problems. The charter of 1813 called for the introduction and promotion of knowledge of science among the inhabitants of British India. But it remained a pious wish: moreover, it gave no indication of which system of science, indigenous or European was to be preferred. The dissention of the British colonial rule to introduce science in the educational curriculum deprived the Indians from receiving scientific knowledge for a long time. In 1835, Thomas Babington Macaulay not only succeeded in making English the medium of instruction in school, college and universities, but was able to prepare an educational curriculum which was purely literacy. Hi personal distaste for science delayed the process of advent of science. A few medical and engineering colleges were opened, but they were meant largely to supply assistant surgeons, hospital-assistant, overseers etc. The educational curriculum was prepared in such a way that the requirement of only subordinate services was met. It was a strategy of British colonial rule i.e. not to give any scope to the Indian to get scientific knowledge of highest quality and complete the British. Later in 1870, the Indian universities began to show some inclination towards science education. In 1875, the madras university decided to examine its matriculation candidates in geography and   elementary physics in place of British history. Bombay was the first Indian city to grant degrees in science, Calcutta university divided its B.A into two branches--- ‘A’ course (i.e. literacy),’B’ course (i.e. science). Even the slow growth of science education was bestowed with many problem, first was the very aim and character of educational policy itself i.e. ’character formation’ K.M.Chatfield, principal of Elphinstone college, admitted that the institution of university professorship would indeed foster the development of knowledge through research but youth was the aim of the system. For this purpose a liberal-literacy education was found more suitable. The second problem was the shortage of funds in providing scientific education. In 1900 the four college of Patna, Cuttack, Hooghly and krishnanagar cost the government Rs 55,441 while the presidency college of Calcutta claimed Rs 1, 14,702.another problem of providing science education is that the authorities always looked for western model and did not try to follow any indigenous model. Major emphasis was laid on theoretical instruction without any proper model to follow. British institutions were looked upon as the ideal models. But they would not grant anything like, higher form of scientific or technical education. The most important feature that is to follow is a hybrid form of education which is the result of carless fusion between industrial and technical education. Further English was the only medium of instruction in science. As a result providing science education to the lower became very difficult as they didn’t understand English. The British educational experiments in India have often been severely criticized education was no doubt on important segment of the whole colonial enterprise and was definitely meant to strengthen it. Gauri Viswanathan calls it a ‘mask of conquest’. Use of education as a medium to strengthen colonial power raises many questions. Chance and bureaucratic momentums were two instruments which propelled colonial bureaucracy. This bureaucracy ensured the importance of colonial requirements before anything else. Colleges related to P.W.D were called civil engineering colleges. There were remarkable differences between engineering education in India and England. In England it started from the lowers classes and gradually being in corporate in university curriculum. On the other hand it was organized from above. Though in France also it was organized from above, the motive differed greatly. In Europe, engineering education was developed in order to facilitate the process of industrialisation.

Modern society and world society.

What is modern society mean? Western industrialization rapidly became the model for the whole world, and western modernity an example to be followed by all nations. Colonies or clients of western powers were developed along these lines before they attained independence. Apparently the only viable polity in the modern world was industrial society, and only industrial societies could be active global agents. Thus japans humiliated by the west mid-19^th century, industrialized and became one of the most powerful societies in the world. Japan’s experience confirmed that there were several routes to modernity. Britain, Western Europe and the USA had industrialized on the basis of individual entrepreneurship and the free market economy. In Germany and Japan, the state and political elites played a major role, in organizing and planning development, and restricting foreign access to home markets in the interests of native industry. Following the Russian revolution of 1917, there came the authoritarian model of modernization under the one party state. Many developing countries in Asia, Africa, and Latin America industrialized according to economic plans drawn by the political elites and imposed upon their populations. Independent India, instituted formal liberal democracy, but its industrialization was guided by the Indian national congress, identified with the struggle for independence. There were also the African socialisms of Kwame Nkrumah’s Ghana and Julius Nyerers Tanzania, the Chinese socialism of mao Zedong, the Cuban socialism of Fidel Castro, and the Yagoslave socialism of Josip Broz Tito. All these became models of development to certain third world societies. In japan, the Soviet Union and china the state supervised industrialization, made major decisions about investment, transport, communications, and education. Mass communications became agencies of mass socialization. Industrialization has taken place within a context of world industrialization, in a world system of states of unequal power. Towards the end of the 20^th century the ideological divisions between west and east, became obsolete with the collapse of communist regimes in the USSR and Eastern Europe. There are core countries that include the united state and Japan; semi-peripheral counties include Brazil, eastern European states and china, Africa and Asia.  Wallerstein’s model recognizes the internationalization of the industrial economy. Nation-states, whether capitalist or communist, are becoming increasingly subordinate to world economic developments. Thus the politics of energy procurement are global in nature just as much as military strategy. Capital investment and growth are global issues, and multinational corporations are significant actors on the world stage, busy establishing a new international division of labour. Manufacturing units are shifted from place to place depending on considerations such as the presence of cheap labour, compliant governments and tax-havens. In this sense multinational corporations embody the independence of core and periphery nations. However the modernization has certainly brought material abundance, but in a differentiated pattern that is reflected in the complex nature of social classes and identities. It has brought control of natural environment this too, at the cost of damaging it, some would say, irreparably.

Meaning of message conveyed is more important than its grammatical correctness.

At  the very genesis, I can’t but say something about the importance of grammar regarding anything in black and white in conveying a message. We can’t express anything nicely without proper usage of grammar. In any language, grammar gives the beauty of the message conveyed. Sometimes, grammatical mistakes change the meaning of the sentence one would to say. But meaning of message conveyed is more important than its grammatical correctness because the existence of language arrived for the first times – not the existence of grammar. Many a time, we follow that the important of message is pre-dominant in us. Let us discuss the issue and make a conclusion over it.

          When we go over some script, we try our best to understand it. Understanding is the main thing that can serve the purpose of anything. After reading anything that conveys message, one tries to feel or realize it. At this the role of grammar is absent for sometime. When a telegraph message is sent grammar is not followed. But the purpose is served all the time it is done. At present dialects are colloquial languages are rampant, where we never find the usage of grammar. People now talk in their local dialects where there the speakers do not realize the importance of grammar.

        During Anglo-Saxon or old English period, grammatical matter was not so important. When we read the script of that period, we find the absence of grammatically correct sentences. Father of English literature, Chaucer also did not care much for grammar or using grammatical sentences. But the messages of the writers of or authors were conveyed through their creative writing.

      Generally, language is spontaneously used for the purpose of communicating one’s message to other. Mass people use it in different way. But they do not use grammatically correct languages. Though the grammar is not followed, the purpose of corresponding messages to each other is successfully done. Besides, we would like to have some creativity among us. For the purpose of cultivating creativity if we don’t give some relief regarding grammar portion, we won’t get many a thing. Strictness of using correct grammar will prevent the practice of creative writing and thinking.

      We the help of language, we express ourselves. When we speak, we try to send the message to our listeners. The speaker and the listener try to serve each other’s purpose. So, the need of grammatical correctness is not necessary in this respect. If some message can be sent without taking any help from grammatical portion of any language, it is more or less acceptable. We are, at times, hurt and we like to there the same with others at this time, we become emotional and we can’t think of grammar because we casually forget rules or system when our emotional expression happen. Being surprised, we also forget many a thing regarding grammar and express ourselves without the syllogistic usage of grammar.

     Lastly, though to a greater extent, the grammatical correctness is inevitable, it never can save our life. But, according to the above discussion, a message more or less, sometimes can save our life or something like that it can do. Before happening an earthquake, if message can reach to the particular area can save the people. What is more, a message can make us happy or in melancholic. So the importance of message is spontaneously accepted by all of us in every aspect of life.