MONEY, ECONOMICS, AND ECONOMIC TRENDS: Money in state politics - TopicsExpress

MONEY, ECONOMICS, AND ECONOMIC TRENDS: Money in state politics plays pivotal role in shaping public policy in individual states and across the nation. followthemoney.org 28 Nov 2003 Economics deal with assets, value of material, market trends, sustainability etc. Money represents value of a material, individual or community. Presently a nation’s wealth is gauged by its financial standing and rate of money flow. Agenda 21 of Earth summit (UNCED, 1992) promotes the attitude that a nation’s wealth should also account for the full value of its natural resources. This process encourages nations to consider the environmental assets and costs of environmental degradation. To reduce the risk of damage, environmental assessments should be carried out to protect land, water, biodiversity and climate resources essential for sustained advances in productivity, profitability and stability. Every development project shall create an economic stake in conservation. Where degradation occur, those responsible should bear the costs (polluter must pay principle as ruled by Supreme Court of India in 1996). SECTOR CONSIDERATION IN PLANNING AND POLICY MAKING In planning, the current focus is on three sectors viz. the production sector (ie. agriculture, fisheries, Animal Husbandry, mining etc.), the manufacturing sector (ie. food processing, steel industry, automobile etc.) and the service sector (like sales & marketing, insurance, health service, counseling, communication). While, the two last mentioned sectors depend on production, production requires primary inputs drawn mainly from nature viz. land, water, energy. If production slows down or is unable keep pace with the demands of manufacturing or service sector, a supply constraint may ensue. This phenomenon may affect not only the manufacturing and service but also the end user. The resulting inflation may deny access, essentially to the poor. Money melting saw retrenchments and layoffs. Inflation forces the government to revise the pay and allowance affecting fiscal balance and funds for development. A policy of “plenty production” must not use nature at rates that are not replenished naturally. (Prabir dutta, 2006). Scientific evidence indicates this to be happening in many cases suggesting a need to invest in environmental assets, sustainability and biodiversity. Behavioral economics, the human face of economics is in its beginning. Socio-nomics investigates the real engine driving the market ie. social mood. [socionomics.org]. Changing life style and growing population, increase the pressure on land, water and energy. Addressing economic meltdown politically or economically (neglecting nature) will only provide a symptomatic relief. It is necessary to deliberate development on a pragmatic canvas supplementing the (three) traditional sectors with the nature (ie. science of environment) and human behavior (science of the soul).