OM ACADEMY

[ FOR ALL SUBJECTS ]

F.Y., S.Y. T.Y.B.Com. & B.B.A.
[ For Accountancy, Statistics & Theory ]

Summery : IEPP
Unit : 1
Q.1 Human Development Index:-
Ans. Developed in :- 1991 by UNDP
Developed by :- Amartya Sen and Mahebub-ul-haq
It is a composite index of economic and non-economic indicators.
There 3 indicators HDI
a) Longevity :- No. of years a person is able to survive from his birth.
b) Knowledge :- It is a combination of i) Adult Literacy Rate ii) Combined Enrolment Ratio (2/3 of
ALR + 1/3 COMER )
c) Standard of Living : It measured on the principle of purchasing power parity and calculated in US$
Values of HDI :- Minimum value :- 0 (zero) Maximum value : 1
Countries are categorised as i) 0.000 to 0.499 = Low HDI
ii) 0.500 to 0.799 = Medium HDI
iii) 0.800 to 1 = High HDI
Q.2 Multi Dimensional Poverty Index (MPI)
Ans. It was introduced in 2010 by Oxford and Human Development Initiative and the United Nations
Development Program.
It uses 3 dimensions which includes 10 indicators
a) Health :- It includes i) Child mortality ii) Nutrition
b) Education :- It includes i) Years of Schooling ii) Children enrolled
c) Living Standards :- It includes i) Cooking fuel ii) Toilet iii) Electricity iv) Floor v) Asset v vi)
Drinking water
Formula :- M = H x A
A household is multi dimensionally poor if the total of weighted deprivations is equal to 1/3
A household is severely poor if deprivation score is ½
Q.3 Sustainable Development
Meaning:- It means without the sacrificing the need of present generation , we have to satisfy the
needs of future generation.
The term “Sustainable development” was first time used by the “world conservation strategy”
prepared by International Union for the conservation of nature and natural resources.
It was commonly used and defined by Brundtland Report in 1987.
The United Nations is creating a new set of national account called “GREEN GDP”.
Which considered the difference between the benefits derived by economic development and cost
incurred due to the loss of environment.
Q.4 Objectives Of Economic Planning
1) Economic Growth :
It means increase in country’s national production. The economic growth leads to increase in
employment opportunities in an economy.
In the first five year plan the economic growth rate was 3.73%
OM ACADEMY OF ECONOMICS 2 F.Y.B.Com., Sem.-II, Summary Note
2) Self Reliance :- It means reduction in dependency on foreign country.
Recently in May 2020 the government of India had introduced “Atmanirbhar Bharat”.
3) Removal of Unemployment :
Another objective of economic planning is to reduce unemployment.
This objective emphasis from fourth and fifth plan.
4) Social Objective:-
It means to provide social justice to poor people.
Social justice means to reduce inequality of income and wealth.
5) Removal of poverty :
This objective of economic planning was mentioned for the first time in the draft of fifth five year
plan. During this period, the slogans of ‘GaribiHatao’ and ‘Growth with justice’.
6) Modernisation :
It includes structural changes and institutional changes.

UNIT : 2
Q.1 Disaster Management
Disaster has adversely affected humans since the dawn of our existence.
The concept that guide disaster management is the reduction of harm to life property and
environment.
Four phase approach of disaster management:
1. Mitigation: It involves reducing or eliminating the likelihood or the consequences of a hazard.
2. Preparedness: It involves equippin who may be impacted by a disaster who may be able to help
those impacted with the tools.
3. Response: It involves taking action to reduce or eliminate the impact of disasters that have occurred.
4. Recovery: It involves returning victims lives back to a normal state following the impact of disaster
consequences.

Q.2 Rural Credit

Sources of agricultural credit:
1. Non institutional sources : Non institutional finance forms an important source of rural credit in
India.
a. Money lenders- it has been widely prevalent profession in the rural areas. They charge huge rate of
interest.
b. Other private sources– i) Traders, landlords and commission agents. They give credit on
hypothecation on crops. ii) Credit from relatives
2. Institutional sources :
a. Cooperative societies: In 1951-52, only 3.1% total credit was given by cooperative society which
increases to 22.5% in 1995-96.
i) Primary agricultural credit society : it can be started with 10 or more persons. The value of each
share is nominal sothat even the poorest can become the member.
ii) District central cooperative banks: They are the federations of the primary credit societies in
specified areas. Their main aim is to land to the primary credit society.
iii) State cooperative banks: They form the apex of the cooperative society in each state. They control
the working of the DCCBs. It serves as a link between the NABARD and the cooperative central
banks.
b. Commercial Banks : They provide direct and indirect finance to the farmers in the village area.
They are one of the important sources of rural credit. They provide indirect finance for the
distribution of the fertilisers.
c. Regional Rural Banks : Its main objective is to provide finance ot the small and marginal farmers,
agricultural labourers and artisans.
d. NABARD : It was set up in 1982 by the act of parliament to take refinancing function of the RBI. It
is an apex institution. It provides short term and long term credit to the state cooperative banks,
RRBs and other institutions.