QUANTITATIVE EASING- QE1 ,QE2, QE3.

WHAT IS QUANTITATIVE EASING?
one can answer to the question simply as "PRINTING MONEY". But there are a lot of concepts involved in it.
when a country goes in to an economic slump it uses this option as a last resort to bring back the economy back in to the track.
every country has certain foreign reserves,when a country's central bank decides to go for QE(quantitative easing) it takes some part of its foreign reserves,the corresponding worth of it is used to raise the country's liquidity by printing money.(but more generally it goes for open market operations to raise the liquidity than by QE, as i already mentioned QE should be the last resort). QE brings two types of inflation, one is GOOD inflation that is higher prices for equities and corporate bonds and the other in the form of BAD inflation which leads to surging commodity prices.
OPEN MARKET OPERATIONS?
R.B.I------COMMERCIAL BANKS-----PUBLIC.
it is the sale or purchase of securities by R.B.I to or from commercial banks to reduce or increase money with the public.
QE1,as operation twist- nicknamed after chubby checker's dance craze of the day dates back to 1961 when it was put in to action by then president John F Kennedy and federal reserve chief William Martin in an attempt to stop massive flow of money from US to Europe. At Jackson Hole in 2010, Ben Bernanke had set the stage for QE2 -using federal balance sheet to buy financial assets.we could see QE3 return in new form in January 2012.
QE2 had minimized the risk of deflation and positioned US for renewed growth and price stability.QE2 pushed financial investors out of risk spectrum and delivered higher asset prices.

Understanding "CASTE INDIA"

                              CASTE AND CASTE PRACTICES

The concept of caste never existed in India, the word caste is used by Portuguese when they came to India, observing the Indian society and practices they follow thought such a system was intended to keep purity of blood. There were a lot of studies conducted on caste system in India. So, many scholars have given the definition of caste, its typology and its characteristics. Ambedkar’s view of caste and caste practices in India:

Ambedkar studied the definitions of caste proposed by Senart, Nesfield, Risley and Ketkar. After critical evaluation of various characteristics of castes, Ambedkar infers that prohibition  or rather the absence of inter marriage between people of different castes is the only element that can be considered as the critical element of caste. Among Hindus, castes are endogamous while gotra within a particular caste is exogamous.  In spite of endogamy of the castes, exogamy at the level of gotra is strictly observed. There are more rigorous punishments for those who break the laws of endogamy. It is understandable that exogamy cannot be prescribed at the level of caste, for then caste, as a definite, identifiable unit would cease to exit. Ambedkar further says that, Preventing marriages out of the group creates a problem from within the group, which is not east to solve. The problem is that the number of individuals of either sex is more or less evenly distributed in a normal group and they are of similar age. If a group desires to consolidate its identity as a caste then it has to maintain a strict balance in numbers of persons belonging to either sex. Maintenance of numbers becomes the primary goal because, if a group wants to preserve the practice of endogamy. It is absolutely necessary to maintain a numerical equality between marriageable individuals of the two sexes within the group.

What naturally happens is that there is a SURPLUS of either sex in the society. If the group does not take care of this surplus population, it can easily break the law of endogamy. Ambedkar argues that there are two ways in which the problem “SURPLUS WOMEN” is resolved in the society. SURPLUS WOMEN may either be burnt on the funeral pyre of their husbands or strict rules of endogamy may be imposed on them. Since burning of women cannot be encouraged in society, Widowhood, bringing with it prohibition of remarriage is imposed on them. As far as problem of SURPLUS MEN is concerned, Ambedkar says that men have dominated society for centuries and have enjoyed greater prestige than women. The same treatment cannot be accorded to them. A widower can remain so far the rest of his life, but given the sexual desire that is natural, he is a threat to morals of the group particularly if he leads a active social life and does not live as a recluse. He has to be therefore, allowed to remarry a woman who has not been previously been married. If a widower is provided a second woman, then an imbalance in number of women of marriageable age is created. A SURPLUS MEN can be therefore be provided a wife who has not yet reached marriageable age that is a minor girl. Ambedkar identified four means by which numerical disparity between the two sexes can be dealt with.

1) Burning of a widow with deceased husband. 2) Compulsory widowhood. 3) Imposition of celibacy on the widower. 4) Wedding the widower to girl who has not yet attained the marriageable age. These practices take care of the maintenance of numerical balance between both the sexes born out of endogamy.

 

A STORY OF VIRUDHUNAGAR- INCLUSIVE GROWTH AND SUSTAINABLE DEVELOPMENT

CASE STUDY: SOURCE –INDUSTRIAL SURVEY 2011.

Cluster development methods stimulate innovation and improve productivity leading to a critical element of national and regional competitiveness. It is a protective and proactive promotional measure to support the privileged small players. Precisely micro enterprises integrate their competitiveness in the changed and challenged business environment.

Safety match manufacturing cluster is an artisan type cluster with about 2000 plus handmade safety match manufacturing units each growth centre located at VIRUDHUNAGAR, SATTUR, KOVILAPATTI KALUGUMALAI, SRIVILLI-PUTTUR and GUDIVATHAM all in the state of tamilnadu. The industry has generated employment to about 2.5 lakh people both direct and indirect. These clusters are unable to withstand competition emerging from the mechanized players. Hence it was decided to form small groups and establish cluster federation consortium (CFCs) in the mentioned six growth centers with the active cooperation and support from central and state government. Six consortia have been constituted by groups of likeminded entrepreneurs each group having 25-35 members. The all India federation of cottage matches manufacturers association, VIRUDHUNAGAR has played a proactive role for strengthening the clusters by encouraging all the players in the cluster to catalyze their synergies in specific areas like marketing, investment and technology transferring process, modernization and the like. Prior to the formation of these consortia the small players were being exploited.

A number of people got opportunity in the CFCs besides a few micro enterprises started their business in rural areas the CFC is the breeder of employment opportunity. The CFCs set up in six growth centers have started supporting members and non members of the handmade safety matches enterprises housed within the vicinity of 10 km. all the six consortia have created a common brand in the name of UNITED MATCH.

The above achievement is an eye opener to other MSE players. Timely support and intervention initiated by the ministry of MSME-DC, MSME, G.O.I and the dept of MSME tamilnadu, IOB bank are instrumental in making the project a success.

WHY CLUSTER DEVELPOMENT?

The vision of the industrial cluster is to improve core competency by creating a strong technology base for MSME players. THE INTERVENTION IN SAFETY MATCH CLUSTERS SEEMS TO BE FIRST OF ITS KIND IN THE WORLD. Six identical projects proposals have been approved and financial assistance to the extent of Rs 85.54 lakh from the central government and 10.73 lakh from state government was extended. CFCs were established in SGOSERVE, SALEM and Wet grinder cluster in COIMBATORE will become more competitive through the establishment of integrated CFC for cost reduction, quality enhancement and new market penetration. The Brick cluster in THIRUNALVELI and Ceramic cluster in VRINDHACHALAM are real artisan clusters. www.mseclusters-tn.com , portal will map MSME clusters in tamilnadu and will create awareness on cluster revaluation and success of group dynamism to public cluster movement is the only solution to achieve sustainable development and spatial integration.