Economics Visualization

8/9/2019 Economics Visualization

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High School Economics A visualization

An effort to pictorially represent the nuances of economics in a simpler manner, making it easier tounderstand.

Zalak Upadhyay

Information & Interface Design | National Institute of Design

by



Concept

The idea behind this project was to visualize the existing CBSE Class IX Economics textbook, to make it easier to understand and grasp the basics, terminology and concepts

without getting into mundane prose given in textbooks.The concept came to my mind while working on a classroom project to visualize economicdata. When we started visualizing the data it was very important for us to know what exactly were we visualizing, this required in depth knowledge of the field, the acronyms, terminology etc. To my dismay I realized I had a very little idea about it, even the economicslearnt back in school seemed hazy and wasn’t helping much. So, I resorted to the textbooks to get my basics right. But, reading the same old textbooks again was an excruciatingly painful task. That’s when i remembered the technique I used back in school to ease my learning experience. I used to read the chapters and simultaneously make graphical notes which would reduce a ten page long chapter to some 2 page long notes, made by me, and then I never had to touch the book ever again. Those notes helped me year long.

Hence, the idea to visualize the book.

Source: Economics, Textbook for Class IX, CBSE



Production in Villages

Types

Small scale

S u g a r

Sugar / jaggery Dair y

Large scale

Agriculture

A brief look at production in terms of Indian villages. What are the major types, factors and their results,scale, requirements and classification.

Indian villages have production of two typesnamely small scale and large scale. Where thesmall scale production includes industries likesugar & jaggery production, the major industry

of Indian villages is agriculture. The economy of Indian villages depends on agriculture and the most common occupation is that of afarmer, either working in one’s own farm or employed by a person owning a bigger chunk of land to work on their fields.

Fixed Capital

Tools Buildings Machines

----------------

Needs

Labor

Water Forests &MineralsLand

NaturalResources

PhysicalCapital

HumanCapital

Money

RawMaterials

Working Capital-------------------

Now, the production has some needs or rquirements which are also known as the factors of production.

The four major factors of production are: Natural resources: Certain resources provided to us by mother earth like land, water, minerals etc are an essential part of production, moreso when weare talking about agriculture.

Labor : There is an obvious need of labor to work on the fields and use the resources to produce, this is more of physical human effort. These are people who do the work. Some production activities require highly educated workers to perform the necessary tasks. Other activities require workers who cando manual work.

Physical Capital: This has more to do with tangible things. Physical capital can be majorly divided into two categories:

a) Fixed Capital: Tools, machines and buildings range from very simple tools such as farmer’s plough to sophisticated machines such as generators, turbines, computers, etc. Tools, machines, buildings can be used in producation over many years, and are called Fixed Capital.

b) Working Capital: Production requires a variety of raw materials such as yarn used by the weaver and the clay used by the potter. Also, somemoney is always required during the production to make payments and buy other necessary items. Raw materials and money in hand are called

working capital. Unlike, tools, machines and buildings, these are used up in production.

Human Capital:One needs knowledge and enterprise to be able to pur together land, labor and physical capital and produce an output either to use yourself or to produce an output either to use yourself or to sell in the market.



Leads to

Production in Villages A brief look at production in terms of Indian villages. What are the major types, factors and their results,scale, requirements and classification.

All the industries and production activities like small scale manufactiring, dairy, transportetc, exist to produce some goods and services that can be consumed and utilised by humans for their basic needs, comfort and development.

All the production activities require some inputs in terms of natural resources, labour, money etc, but then they have their outputs as well. Like goods andservices. These goods and services lead to development, which in turn leads to growth nd prosperity.

A village needs certain facilities to survive and sustain on it’s own. Some of these are:

Irrigation / Water supply : Proper water supply is very important both for the residents in terms of hygiene and also for the proper functioning of theindustries, especially agriculture, which requires water for irrigation.

Electricity: All of us know the importance of electricity for daily gneral purposes and to run machines.

Transportation: It is very essential for a better connectivity of the village to near by villages and cities, for a better market.

Housing: One of the most essential requirements of humans is a shelter to save themselves from the various weather conditions, sanitation and goodhealth.

Schooling: Education is vary important for a nation’s progress. And it has to be imparted at the very basic level. It is very important to have schoolingfacility at a short distance for a proper education of the kids so that they can develop, and aid the development of their village with their expertise.

Health center: Health and sanitation is also an essential part of human society’s development.

Produces

Good & Services

Growth & prosperity

Houses &Schools

Irrigation

Health Center Transportation

Electricity



Self Employed Employed

Agriculture

Labor Land

Styles

U s e s N

e e d s

Has

Unevenly divided

Fertility

IncreasedProduction

NormalProduction

Production in Villages A brief look at production in terms of Indian villages. What are the major types, factors and their results,scale, requirements and classification.

Land ia a vary important factor

for agriculture. But, it doesn’t endat land, it’s size and fertility matters a lot. Two of the major concerns regarding the Land inIndian agricultural context arefertility ans size. Fertility has beenmajorly affected by chemicals and weather conditions. Also, thedistribution of land is very uneven.

As mentioned previously labor, i.e

people tp work on the land in terms of physical and intellectuallabor are also important. Labor in terms of Indian agriculture is seenin two major categories. Self employed are the ones, who ownland and work on their own land, whereas employed are those who work on other’s farm for daily wages.

Whereas, there are certain parts of India, where thefarmers have started to develop and keep updated with the happenings around the world in their field. They haveadapted various methods to increase their production likemultiple farming and modern methods. They use toolslike tractors, threshers, pumps etc. Also, chemicalfertilizers, pesticides are being used along with High Yielding Variety (HYV) seeds.

Indian agriculture is mostly simple all over the country and depends on monsoons for it’s irrigation and other seasonal activities for the production. The farmer community at remote villages is still uneducated andignorant about the modern farming methods andcontinues to tradition of old days. whereas weather conditions have changed and hence it leads to a very normal production.

The crops are highly dependent on

natural conditions.

Often leads to drought and famine.

At times crops are lost to rodents

and infestations.

Production is very average both in

quantity and quality, and the farmer

suffers.

The production is increased manifold

and the quality improves as well.

But, the studies reveal that the

products lack the natural taste and

nutrient values.

Chemicals affect the fertility and

pollute the land.

A reduction in water tables is seen.



People as Resource An effort to explain population as an asset for theeconomy rather than a liability. A look at people andpopulation as human capital.

M i s c o n c e p t

i o n s

T r u t h

Population

Food Issues

HealthIssues

Job issues

+

Skills

+

education

+

training

+

medical care

Human Capital

Increased Gross National Product




Human Capital

Direct

Higher salaries

Better lifestyle

Better Health

Indirect

Secondary

Tertiary

Primary

Green revolution

Employment

Education

Betterment of Society

Development

Progress

High GNP

Virtuous

Cycle

Agriculture

Forestry

Animal Husbandary

Fishing

Poultry

Mining

Quarrying

Manufacturing

Production

Technology

Trade

Transport

Communication

Banking

Education

Health & Services

Tourism

Market activities

Activity performed for pay or profit.

Non - Market activities

Production for self consumption.

India’s green revolution is adramatic example of how the input of greater knowlwdge in the form of improved production technologies can rapidly increase the productivity of scarce land resources.

IT revolution

India’s IT revolution is astriking instance of how theimportance of human capitalhas come to acquire a higher postion than that of material, plant andmachinery.

Leading example Japan

Countries like Japan haveinvested in their humanresource. They did not have any

natural resource. Thesecountries are developed/richcountries. They import thenatural resources needed in their country. They haveinvested intheir people especially in the field of education andhealth. These people have madeefficient use of other resourceslike land and capital.Efficiency and technology evolved by people have made thesecountries rich/developed.




Quality of

Population

Literacy rate

Literacy rate statistics

Education opens new horizons, provides new aspirationsand developed values of life. It also contributes towards growth of the society. It enhances national income, culturalrichnesss and increases the efficiency of governess.

Plans by Government

Provision for universal access, retention and quality in elementary education with specialemphasis on gorls.

Establishment of pace setting of schools like Navodaya Vidyalaya in each district.

Vocational streams for knowledge and skill development.

Free education till the age of 14, the Sarva Shiksha Abhiyaan.

Focus on distant education, convergence of formal, non-formal , distant and ITeducation institutions.

80

70

60

50

40

30

20

10

0

1961 1991 20011971




Quality of

Population

Life Expectancy

Health related statistics

A healthy mind lives in a healthy body. To be able to work and apply one’s skills effectively one needs to be in a healthy state of mind. Unhealthy people are a liability to the nation.Hence, life expectancy is an important factor.

Plans by Government

Improvisation of accessibility of health care, family welfare and nutritional service withspecial focus on the under-privileged segment of the population.

There has been a constant effort to increase man power in the medical sector.

Special mother care and childcare units have been provided.

Certain essential vaccinations are distributed for free in vaccination camps. Ex: Polio.

New medical colleges are opened up, and interns are requested to serve in rural areas.

1951 1981 2001

9,209

1,17,198

61,800

23,555

5,69,495

1,43,887

43,322

8,70,161

7,37,000

Hospitals

Beds

Medical Personnels




Major

Issues

Labor DistributionDue to historic or cultural reasons there is a division of labour between men and women in the family. Women generally look after domestic chores and men work in thefields. Women are not paid for their doemstic work and

hence, don’t add up to National Income.

Unemployment

Unemployment is said to exist when people who are willing to work at the going wages cannot find jobs. The wrokforcepopulation includes people from 15 years to 59 years.

Urban

RuralSeasonal

Disguised

Educated

It happens when people are not able to findjobs during some months of the year.People dependednt on agriculutre usually

face this problem.

Here people appear to be employed. Thisusually happens among family membersengaged in agricultural activity. The jobrequires 5 people but engages 8 people,making 3 extra.

Often there are people who are educatedbut do not get a job due to surplusmanpower. There is unemployment among technically qualified people on one hand, whereas there is a dearth of technical skillsrequires for economic growth.

Wastge of manpower resource.

Increases economicoverload.

Dependence of unemployed people on working population.

Detrimental to overall growth of an economy.

Women are paid only when they enter thelabor market.

Their earning like that of their male

counterpart depends on their education andskill.

Majority of Indian women have meagreeducation and low skill formation.

Women are paid low compared to men.

Most women work where job security isnot there, no legal protection, low andirregular income.

Fact is women with high education earn atpar with men and do exceptionally well infields like teaching and medicine.



Poverty A look at one of the most difficult challenges faced by Independent India. The definition, parameters, view of social scientists and world wide view.

26 crore people in India live in poverty!

India has the single largest concentration

of poor in the world.

Lack of shelter Lack of clean water

Lack of sanitation

No regular Job

Sense of helplessness

Landlessness

Unemployment

Child labour

Malnutrition

Hunger

Can’t send my kids to school!

Can’t afford medical bills!

One in every four people in India is poor.

People in India below poverty

line, often don’t have proper drinking water and sannitation,like toilets.

Most of the times they can’teven manage a proper meal per

day, sometimes they go hungry for days.

Due to lack of education they most often end up doing harshphysical labour, which again isnot a permanent job andchanges according to need. When there’s not enough money to feed the

family, often the kids are also taken into labour and hardly have time and money to go toschools.

When a meal per day is luxury,

nutrition definitely goes for a toss. Most of the kids, die at anearly age due to lack of nutrition

All the bad conditions, with nofood, no health care, lack of aregular job and bad treatment by the society creates a sense of helplessness.

Often the poor people have noproperty of their ow, even if they are farmers, they earn wages by working on someone else’s land.

Lot of times, there’s a struggle tofind a job that can sustain their family.

Due to lack of funds in the family, the children in the family areforced to work, which is against the constitutional rights.

In most of the cases, poor peopledon’t even have proper shelter tolive under. They are often seensleeping in public places, under bridges, on construction sites,railway stations etc.

They even lack the basic necessity of safe and clean drinking water,hence keep falling sick, and their chances of survival are meagre.

Medical treatments are next to impossiblefor them with the increased medical billsand lack of proper access to medicalcentres.




What Social Scientists

have to say?

Income

Consumption

Usually the indicators used to measure poverty are level of income and consumption. Also, known as the ‘ poverty line’.

A person is considered poor if his or her income or consumption level falls below a given “minimum level”necessary to fulfill basic needs. What is necessary to satisfy basic needs is different at different times and in differentcountries. Therefor, poverty line may vary with time andplace.

Factors for calculation of Indian Poverty Line

The usual terminology

Calculating poverty line

Things to know

Minimum level of food requirement (in Calories),depending on age, sex and type of work.

Clothing

Footwear

Fuel & Light

Educational & Medical requirements

Poverty Line = Level of Factors X Cost Price (C.P)

Poverty line for Urban and Rural areas is differentdue to difference in cost price.

Poverty line is calculated based on surveysconducted every 5 years.

These surveys are conducted by National SampleSurvey Organisation (NSSO)

Social Exclusion

According to this concept, poverty must be seen in terms of the poor having to live only in a poor surrounding with other poor people, excluded fromenjoying social equality of better-off people in better surroundings. Social exclusion can be both a cause as wellas a consequence of poverty in the usual sense. Broadly,it is a process through which individuals or groups areexcluded from facilities, benefits and opportunities thatothers enjoy.

Vulnerability

Vulnerability to poverty is a measure, which describes the greater probability of certain communities ( say,members of a backward caste) or individuals (such as widow or a physically handicapped person) of becoming,or remaining poor in the coming years.

Vulnerable groups

The proportion of people below poverty line is also notsame for all social groups and economic categories in

India. Social groups which are most vulnerable to poverty are scheduled caste and scheduled tribe households.Similarly, among the economic groups, it’s the ruralagricultural labour households and the urban casuallabour households.

Apart from these social groups, there is also inequality of incomes within a family. In poor families all suffer, butsome suffer more than others. Women, elderly peopleand female infants are sytematically denied equal access to resources available to the family.

Inter - State Disparities

The proportion of poor people is not the same in every state of India. The success rate of reducing poverty variesfrom state to state. States like Orissa, Bihar, Assam,Tripura and Uttar Pradesh face a serious problem of poverty.




Global poverty Scenario

5.6

7.58.2

16.6

35.3 36.0

70.8

17.0

N

i g e r i a

B a n g l a d e s h

I n d i a

P a

k i s t a n

C h

i n a

B r a z i l

I n d o n e s i a

S

r i L a n k a

Poverty: Comparison among some selected coountries

Source: World Development Report, 2001




Anti-Poverty Measures

Targeted Anti-Poverty programmes

National Rural Employment Guarantee Act

(NREGA) 2005 was passed in September 2005.

The Act provides 100 days assured employmentevery year to every rural household in 200 districts.

One third of the proposed jobs are for women.

The central governement will also establesh National

Employment Guarantee Funds.

National Food for Work Programme (NFWP)

was launched in 2004, in 150 backward districts of the country.

It is open for all rural poeple who are in need of wage employment and desire to do manual unskilledlabor.

Prime Minister Rozgar Yozana (PMRY) startedin 1993.

The scheme was aimed at creating self employmentopportunities for educated unemployed youth inrural areas and small towns.

Rural employment Generation Programme

(REGP) launched in 1995 had a similar aim.

SwaranaJayanti Gram Swarozgar Yojana

(SGSY) was launched in 1999 which brought together poor families to create self help groups through bank credit and government subsidy.

Pradhan Mantri Gramodaya Yozana (PMGY)

launched in 2000, gave additional central assistance to states for basic services such as primary health,primary education, rural shelter, drinking water, and

electrification.

Economics Visualization

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