|
on Central and Western Asia |
| By: | Banerjee, Abhijit; Pande, Rohini |
| Abstract: | This paper examines how increased voter ethnicization, defined as a greater preference for the party representing one's ethnic group, affects politician quality. If politics is characterized by incomplete policy commitment, then ethnicization reduces average winner quality for the pro-majority party with the opposite true for the minority party. The effect increases with greater numerical dominance of the majority (and so social homogeneity). Empirical evidence from a survey on politician corruption that we conducted in North India is remarkably consistent with our theoretical predictions. |
| Keywords: | Corruption; Ethnic Voting; India |
| JEL: | O12 P16 |
| Date: | 2007–07 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:6381&r=cwa |
| By: | Ncemiddin Bagdadioglu (Department of Public Finance, Hacettepe University); Alparslan Basaran (Department of Public Finance, Hacettepe University); Catherine Waddams Price (Centre for Competition Policy, University of East Anglia) |
| Abstract: | This paper analyses the potential effect of electricity reform on different households, using a series of potential scenarios for price changes, and consumption information from the 2003 Turkish Household Expenditure Survey. Turkey is emerging as a regional energy market, hub, and transit country between Europe and Asia, and has been reforming her energy sector in line with EU Energy Acquis since 2001. Introducing a cost reflective tariff is an essential component of Turkish electricity reform. Yet, this tariff structure might create real hardship for, and thus strong opposition from, some households, which might not be compensated through the rather underdeveloped Turkish social security system. Perhaps to avoid the possible political costs of this before the general election of November 2007, the Turkish Government disregarded the sector regulator EMRA's insistence, and postponed pursuing such tariff for at least five years. Identifying these households, however, helps to anticipate opposition, and perhaps to mitigate it partially through compensation schemes. This might also facilitate Turkey's integration with the Energy Community of South East Europe created in 2005. To explore the likely effect of tariff changes on various groups of households we apply six scenarios. Firstly, we analyse the likely impact of EMRA's proposal of reflecting large regional variation in technical and non-technical losses. We also consider the effect of a potential efficiency saving from the proposed merger of distribution companies. Then, we explore the potential outcome of raising the currently low ratio of residential to industrial tariffs to OECD average. Furthermore, we study the effect of reducing the rather high level of taxes on households. Lastly, we examine the likely consequence of changing the present flat rate prices per kilowatt hour to a tariff which reflects more accurately the pattern of consumer-related and consumption-related costs. |
| Keywords: | Household survey, electric utilities, government policy |
| JEL: | D10 L94 Q48 |
| Date: | 2007–04 |
| URL: | http://d.repec.org/n?u=RePEc:ccp:wpaper:wp07-08&r=cwa |
| By: | Demir, Firat |
| Abstract: | Using micro level panel data, we analyze the impacts of rates of return gap between fixed and financial investments under uncertainty on real investment performance in three emerging markets, Argentina, Mexico and Turkey. Employing a portfolio choice model to explain the low fixed investment rates in developing countries during the 1990s, we suggest that rather than investing on risky and irreversible long term fixed investment projects, firms may choose to invest on reversible short term financial investments depending on respective rates of returns and uncertainty in the economy. The empirical results show that increasing rates of return gap and uncertainty have an economically and statistically significant fixed investment reducing effects in all three countries while the opposite is true with respect to financial investments. |
| Keywords: | Private Investment; Portfolio Choice; Uncertainty; Financialization |
| JEL: | C33 D21 O16 G11 E22 |
| Date: | 2007 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:3835&r=cwa |
| By: | Akhter, Naseem; Ali, Amanat |
| Abstract: | This study measure the linkage of trade liberalization and labor demand elasticities. Using Pakistan firm-level data, spanning the course of trade liberalization, study try to determine whether the trade liberalization increase the own price labor demand elasticities in the manufacturing sector of Pakistan. Elasticities are measure for production workers and non-production workers for major eleven industries at individual level at first and later elasticities are measured by pooling data across the industries at aggregate level. However, in most of the industries, study unable to find any empirical support for the hypothesis of no relationship between trade liberalization and labor demand elasticities in case of Pakistan. |
| Keywords: | Trade liberalization; elasticities; Production and non Production worker; Pakistan |
| JEL: | F16 |
| Date: | 2007–06 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:3881&r=cwa |
| By: | Audretsch, David B; Bönte, Werner; Tamvada, Jagannadha Pawan |
| Abstract: | While considerable concern has emerged about the impact of religion on economic development, little is actually known about how religion impacts the decision making of individuals. This paper examines the influence of religion on the decision for people to become an entrepreneur. Based on a large-scale data set of nearly ninety thousand workers in India, this paper finds that religion shapes the entrepreneurial decision. In particular, some religions, such as Islam and Christianity, are found to be conducive to entrepreneurship, while others, such as Hinduism, inhibit entrepreneurship. In addition, the caste system is found to influence the propensity to become an entrepreneur. Individuals belonging to a backward caste exhibit a lower propensity to become an entrepreneur. Thus, the empirical evidence suggests that both religion and the tradition of the caste system influence entrepreneurship, suggesting a link between religion and economic behaviour. |
| Keywords: | caste-system; entrepreneurship; India; religion |
| JEL: | L26 Z12 |
| Date: | 2007–07 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:6378&r=cwa |
| By: | Siri Terjesen (Brisbane Graduate School of Business, Australia; Max Planck Institute of Economics, Germany) |
| Abstract: | This case follows Sethu Sethunarayanan, Director of the non-profit Center for the Development of Disadvantaged People (CDDP), which is dedicated to the improvement of the Irula tribe in rural villages of southeast India. The Irulas specialize in catching rats, an activity which provides the bulk of their income and food. Following a routine visit to a local village, Sethu recognized an opportunity for a "better rat trap" to aid the Irula rat catchers. With feedback from rat catchers, Sethu developed an innovative new trap. His innovation won the prestigious Global Development Marketplace award from the World Bank which provided the funding necessary to commercialize the new technology. The venture’s implementation involved site visits to identify beneficiaries, health checks and treatment, preparatory workshops, factory establishment, factory training, production, women's micro-credit collectives, distribution and project evaluation. The case focuses on the relationship between human capital and technological entrepreneurship, considering the knowledge and skills required to commercialize technology for the rural poor and the positive impact on this greatly disadvantaged population. |
| Keywords: | Human Capital, India, Innovation, Irula, Social Entrepreneurship, Technological Entrepreneurship, World Bank |
| Date: | 2007–07–05 |
| URL: | http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2007-031&r=cwa |
| By: | Vyas Preeta; Sharma Ankush |
| Abstract: | Indian apparel retail sector poses interesting challenges to a manager as it is evolving and closely linked to fashions. Appealing mainly to youth, the sector has typical information requirements to manage its operations. DSS (Decision Support Systems) provide timely and accurate information & it can be viewed as an integrated entity providing management with the tools and information to assist their decision making. The study exploratory in nature, adopts a case study approach to understand practices of organized retailers in apparel sector regarding applications of various DSS tools. Conceptual overview of DSS is undertaken by reviewing the literature. The study describes practices and usage of DSS in operational decisions in apparel sector and managerial issues in design and implementation of DSS. A multi brand local chain and multi brand national chain of apparel was chosen for the study. Varied tools were found to be used by them. It was also found that for sales forecasting and visual merchandising decisions, prior experience rather than any DSS tool was used. The benefits realized were; “help as diagnostic tool”, “accuracy of records and in billing”, “smooth operations”. The implementation issues highlighted by the store managers were; more initial teething problems rather than resistance on the part of employees of the store, need for investment of time & money in training, due to rapid technological advancements, time to time updation in DSS tools is required . Majority of operational decisions like inventory management, CRM, campaign management were handled by ERP (Enterprise Resource Planning) or POS (Point of Sale). Prioritization as well as quantification of benefits was not attempted. The issues of coordination, integration with other systems in case of ERP usage, training were highlighted. Future outlook of DSS seems bright as apparel retailers are keen to invest in technology. |
| Date: | 2007–07–04 |
| URL: | http://d.repec.org/n?u=RePEc:iim:iimawp:2007-07-01&r=cwa |
| By: | Nader Ghotbi (College of Asia Pacific Studies, Ritsumeikan Asia Pacific University); Tsuneo Tsukatani (Institute of Economic Research, Kyoto University) |
| Abstract: | The dramatic increase of poppy cultivation and opium production in Afghanistan has led to a serious drug addiction problem in te world. The rising heroin use, because of needle sharing, may lead to a much higher incidence of HIV infection and AIDS in Afghanistan in the future. We organized two expeditions into Afghanistan itself, one through the capital, Kabul and the other through Tajik border on Amu]Darya River and along the regions bordering the Central Asian countries. These expeditions included observations on sites and taking photographs and videos, sampling of soil, vegetation and water at random locations for further analysis, interviews with local authorities, and so on. We also used the data provided by other colleagues and organizations. We compared their information with our findings and sometimes used them to enrich and/or correct our own estimates. The production and trade of illicit narcotics is one of the most significant challenges to progress in Afghanistan. As an economic challenge, it diverts agricultural land and labor from more beneficial uses and undercuts the prospects for developing more sustainable lvelihoods. However, a solution for problems associated with poppy cultivation and opium production in Afghanistan requires the inclusion of many srategies. Providing the local farmers with appropriate economic substitutes for poppy is one of such strategies. Other strategies include assistance with agricultural needs such as irrigation systems and seeds, provision of training to farmers for cultivation of other crops, revival of the agricultural infrastructure including irrigation systems, assisting with economic needs of small farmer. |
| Keywords: | Poppy, heroin, Afghanistan, Tajikistan, irrigation agriculture, HIV/AIDS, Amudarya, international cooperation |
| Date: | 2007–07 |
| URL: | http://d.repec.org/n?u=RePEc:kyo:wpaper:635&r=cwa |
| By: | Dalila NICET-CHENAF (GREThA); Eric ROUGIER (GREThA) |
| Abstract: | The existing literature points to a series of determinants of FDI attraction such as the size of markets, the costs of labor, infrastructure, the educational level of the labor force, or policy reforms and political stability … However, potential trade-offs or complementarities between similar countries are rarely underscored as factors explaining the performance or the under-performance in attracting FDI. In this paper we try to determine if there is an inverse (positive) relationship between FDI flows in Tunisia and in Morocco. We test this hypothesis is tested in a VAR model (Vector Autogressive Regression) and we show that FDI in Tunisia attract, in an indirect way, the FDI in Morocco, probably by improving the climate of business in the region. But, meanwhile, Morocco undergoes a significant diversion of FDI in favour of Tunisia in the long run. |
| Keywords: | Foreign direct investment (FDI) ; trade-off, attraction ; Morocco ; Tunisia |
| JEL: | F21 O57 F59 |
| Date: | 2007 |
| URL: | http://d.repec.org/n?u=RePEc:grt:wpegrt:2007-02&r=cwa |
| By: | Shah, Deepak |
| Abstract: | India is known for its livestock wealth and ranks high among the nations having bovine population. However, despite having huge livestock population, India stands insignificant in the world trade of livestock products. The recent concerted efforts made by the government in the era of liberalization after opening up of the national economy to the international market have certainly boosted India’s export trade of livestock products to newer heights. The dairy industry of India is already at a take-off stage and the entry of the corporate sector following the liberalized policies of government is bound to complement the efforts of National Dairy Development Board (NDDB) to usher in a white revolution. The most important achievement of the dairy industry is the near-self sufficiency in milk production. Nonetheless, the possibility of India emerging as a potential exporter of various livestock products will largely depend on India’s own ability to exploit her potential in this sector and generate exportable surplus of these commodities, aside her competitive strength in the world market. |
| Keywords: | Export Trade Livestock India |
| JEL: | F10 |
| Date: | 2007–07–09 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:3928&r=cwa |
| By: | Shah, Deepak |
| Abstract: | Maharashtra has 720 km. of coastline with the continental shelf area of 111512 sq. km. There are as many as 32 inland varieties of fish produced in this state. Among these varieties, shrimps, prawns, harpodon neherias, ribbon fish, otalithes, pomfrets, anchoviella, mackeral and cattle fish put together account for over 70 per cent share in total inland fish production of Maharashtra. Brihan Mumbai and Thane are the only two major regions of the state accounting for bulk of the total inland fish production. Though Maharashtra accounts for a significant share in total marine fish production of India, her share in total fish production of India has declined over the past two decades mainly due to a sharp decline in her share in total marine fish production of India. The major problem faced by the marine fisheries of Maharashtra is relating to depletion of resources due to illegal presence of foreign vessels and vessels belonging to other states, which appeared to have created pressure on the coast line. As a result, the marine fish production of Maharashtra has grown at very low pace during the last two decades. In order to tackle this problem, there is need for the Government of India to introduce zonalisation of coast line in the National Fishing Policy. This will certainly help in checking the depletion of marine resources. In fact, the present fishing fleet of the state is not capable of exploiting the deep sea resources. It is to be further noted that there has been decline in inland water spread area and numerical strength of fish curing yards in the state. The number of fishery schools in the state has also stagnated over the last two decades. These are certainly disturbing features of the fisheries sector of Maharashtra. Although in order to develop fisheries sector, the department of fisheries in the state is conducting various training programme relating to carp fish seed production, fresh water prawn culture, integrated fish farming and management of aquarium, etc., there is also need to educate fishermen with respect to dissemination of information relating to modern fishing techniques and efficient marketing of fish catch. Equally important is the need for more innovative technologies in this sector, diffusion of developed technology by extension workers and adoption by the clients. Education of fishermen about modern fishing techniques has significant impact on adoption of recommended fish culture practices by the farmers. Further, extension and mass media participation have strong positive relationship with adoption of fish culture practices. Nonetheless, inadequate infrastructure and flow of information technology are the major barriers for better market integration in the existing marine fish markets of India. |
| Keywords: | Management Fisheries Development |
| JEL: | Q22 |
| Date: | 2007–07–09 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:3924&r=cwa |
| By: | Shah, Deepak |
| Abstract: | The results obtained in respect of annual maintenance cost and returns for various categories of grape orchardists are in conformity with the financial analysis. The gross returns from grape orchards during various stages of production are noticed to be twice the cost of production for various categories of orchardists. The results of financial analysis also show a B-C ratio in grape cultivation in the range of 1.86 and 2.15 for various categories of orchardists with an average of 2.07. Among various categories, the medium and large categories of orchardists not only show quicker payback period but they also show higher NPV and B-C ratio as compared to marginal and small categories of orchardists. The large and medium categories of orchardists are, therefore, noticed to manage their grape gardens more efficiently as compared to small and marginal categories of orchardists. However, in general, the cultivation of grapes is noticed to be a lucrative proposition for all the categories of orchardists because of substantially high element of profit involved in the cultivation of this high value crop. Due to high element of profit, the onus of technological efforts have been more favourably inclined and concentrated behind the cultivation of grapes in the state of Maharashtra. Another important aspect of this high value crop is its international competitiveness. Among various fruits and vegetables, Indian grapes are highly competitive in the world market. Efforts should, therefore, be made to boost the export trade of this valued crop by enhancing its production volume. |
| Keywords: | Grape Economy India |
| JEL: | R11 |
| Date: | 2007–07–09 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:3927&r=cwa |
| By: | Shah, Deepak |
| Abstract: | The RFIs operating in Maharashtra have not only shown slower growth in their loan advances and other operational indicators during the period between 1991 and 2000 but also poor performance thereafter. The credit cooperatives in particular have shown significantly high NPAs in Maharashtra. In Maharashtra, Vidarbha region not only shows very low magnitudes of credit flow through cooperatives but also decline in share of loan for cotton crop vis-à-vis other field crops. One of the adverse effects of slowing down in loan advances for cotton crop is seen on the farming community of this region where a significant number of cotton growers have committed suicide either due to lack of loan advances to them or because of pressure created by various financial institutions in terms of recovery of loan despite crop failure. With a view to revive the agricultural credit delivery system, there is need to tackle twin problems facing the system, viz., growing NPAs with falling CD ratios and poor recovery performance of RFIs, aside from adopting innovative approaches like linking of SHGs and NGOs with mainstream financial institutions. In brief, the focus of rural credit delivery system should be on strategies that are required for tackling issues such as sustainability and viability, operational efficiency, recovery performance, small farmer coverage and balanced sectoral development. |
| Keywords: | Rural Credit Delivery India |
| JEL: | G21 |
| Date: | 2007–07–09 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:3922&r=cwa |
| By: | Shah, Deepak |
| Abstract: | Developing countries like India should find potentiality in non- traditional exports at a time when growth in the traditional ones is foundering. At the same time, it deserves mention that the future growth in horticultural production in developing world mainly depend on future price mechanism and also on the import demand of these high value crops in various regions of the world. The production deficit of various regions in fruits and vegetables will act as engine of export growth of the same for developing nations. Import demand for fruits and vegetables has already been predicted to grow sharply in developed region of the world in the near future. This will lead to rise in export prices, especially for fruits. Production deficit of other countries and regions and a likelihood of rise in export prices of these high value crops may serve as a catalyst for significant expansion in the production of horticultural crops, particularly in developing world. India is expected to take advantage of this situation and cooperatives are likely to play a key role in shaping India’s exports. However, in order to exploit this situation cooperatives have to be developed as economically effective organizations, capable of meeting the challenges of the new, liberalized economic environment. Besides, they have to achieve full utilization of the existing infrastructural facilities with due emphasis on scaling up of the economy through expansion of production capacity and upgradation of technology. |
| Keywords: | Cooperative Institutions Horticultural Exports |
| JEL: | F10 |
| Date: | 2007–07–09 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:3923&r=cwa |
| By: | Shah, Deepak |
| Abstract: | Many states in India have initiated various measures to protect their forest resources. Maharashtra is no exception to this phenomenon. An attempt, therefore, has been made in this paper to examine the extent to which this state is successful in conserving and managing its forest resources. The main foci of attention of this study are on evaluating various forest related indicators of Maharashtra such as distribution of forest area, outturn of major and minor forest produce, income and expenditure pattern on state forestry, extent of social forestry, and afforestation, etc. The study revealed very interesting observations. One of the major observations of this study was the sharp decline in revenue receipts from state forestry, especially after the late eighties period. Very slow growth in total value of forest produce harvested and a sharp increase in total expenditure on state forestry were found to be the major causative factors responsible for this decline in revenue receipts. Although the Government has banned felling of trees in many parts of the state, it has also adversely affected not only the harvesting of forest produce and thereby revenue receipts from state forestry but also the working of FLCS in the state. The study provides certain policy suggestions that will not only help the state to increase its revenue receipts from state forestry but also in respect of achieving its goal of maintaining ecological balance in the state. |
| Keywords: | Management Forest Resources |
| JEL: | Q23 |
| Date: | 2007–07–09 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:3920&r=cwa |
| By: | Shah, Deepak |
| Abstract: | An investigation into rural credit delivery system in Maharashtra shows slower growth in institutional finances through commercial banks, credit cooperatives, RRBs and LDBs, particularly during the decade of 1991- 2000, which is mainly due to adverse environment created by the financial sector reforms. Due to unfavourable policy framework, the entire rural credit delivery system encompassing rural branches of commercial banks, cooperative credit institutions and RRBs is reduced to a moribund state. High transaction costs and poor repayment performance are the twin root causes of the moribund state of rural credit delivery system. With a view to revive the agricultural credit delivery system, there is need to adopt innovative approaches like linking of Self-Help Groups (SHGs) and Non-Government Organizations (NGOs) with mainstream financial institutions. Such linkages are reported to have not only reduced transaction costs but also ensured better repayment performance. One of the recent studies conducted in Maharashtra has shown cent per cent recovery of loans through SHGs despite having excessively high rates of interest (24-36 per cent per annum) on their loan advances. One of the further disquieting features of RFIs in Maharashtra has been the high proportion of NPAs to total assets, particularly of RRBs and SCARDBs, which are estimated to hover around 36-48 per cent during the mid-to late nineties. One of the reasons for such high incidence of NPAs of RFIs has been the familiar practice of debt forgiveness, which eroded repayment and allowed defaulters to scot free with no deterrent reprimand. Political interference in issues of prudent fiscal management has got a lot to do with this unfortunate scenario. In order to rejuvenate rural credit delivery system, the twin problems facing the system, viz., high transaction costs and poor repayment performance, need to be tackled with more fiscal jurisprudence reserving exemplary punishment for willful defaults, especially by large farmers. In fact, insofar as the rural credit delivery system is concerned, the focus should be on strategies that are required for tackling issues such as sustainability and viability, operational efficiency, recovery performance, small farmer coverage and balanced sectoral development. |
| Keywords: | Rejuvenation Rural Credit Delivery in India |
| JEL: | R11 |
| Date: | 2007–07–09 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:3951&r=cwa |
| By: | Shah, Deepak |
| Abstract: | An analysis encompassing two case studies conducted in forward and backward regions of Maharashtra (India) has shown deterioration in the financial health of central level credit cooperatives (Sangli District Central Cooperative Bank (SDCCB)) in forward region and gross inefficiency in their functioning (Buldana District Central Cooperative Bank (BDCCB)) in the backward region of the state, due mainly to their mounting NPAs or overdues’. Because of substantially high NPAs, the fixed expenses of these institutions have been adversely affected, which in turn have grossly affected the break-even levels of loan advances and deposits of these credit institutions, so much so that there has been huge gap between the break-even levels of loan advances and deposits and the actual loan advances and deposits. In the case of BDCCB, the deficit between actual and the break-even levels are so high (about 60 per cent) that it will be well-nigh impossible for it to overcome this situation. High transaction costs, poor repayment performance, and mounting NPAs are the root causes of the moribund state of rural credit delivery through these cooperatives. Further, it is to be noted that the estimated trend over the past two decades in Maharashtra shows a slower growth in institutional finances through credit cooperatives and also in their membership during the decade of economic reforms (1991-2000) as against the decade preceding it (1980-1990). On the other hand, the outstanding loans of these cooperatives have grown at much faster rate as compared to their loan advances during both pre- and post economic reform periods. The slower growth in institutional finance through credit cooperatives during the decade of 1991-2000 is mainly due to adverse environment created by the financial sector reforms. Due to unfavourable policy framework, much of the deposits of the credit cooperatives are going into investments, instead of advancing loans to the farming sector. As a result, the C-D ratios of these credit cooperatives have been adversely affected. With a view to revive agricultural credit delivery through cooperatives, the need of the hour is to adopt innovative approaches like linking of SHGs and NGOs with mainstream financial institutions, including cooperatives. Such linkages are reported to have not only reduced transaction costs but also ensured better repayment performance. In brief, in order to rejuvenate rural credit delivery system through cooperatives, the root problems facing the system, viz., high transaction cost, poor recovery performance, and NPAs, need to be tackled with more fiscal jurisprudence reserving exemplary punishment for willful defaults, especially by large farmers, and the individual cases who have borrowed credit from these institutions. In fact, insofar as rural credit delivery through credit cooperatives is concerned, the focus should be on strategies that are required for tackling issues such as sustainability and viability, operational efficiency, recovery performance, small farmer coverage and balanced sectoral development. |
| Keywords: | Financial Health Credit Cooperatives |
| JEL: | R11 |
| Date: | 2007–07–09 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:3949&r=cwa |
| By: | Shah, Deepak |
| Abstract: | Although India is blessed with diverse agro-climatic conditions and so has the ability to produce a wide variety of fruits, vegetables, flowers and a host of other agro-based products, a substantial quantity of horticultural produce of our country is lost due to poor post harvest processing, handling, transportation and storage operations. In order to curb these losses, some of the agencies like National Horticulture Board (NHB) and National Cooperative Development Cooperation (NCDC) are making sincere efforts to create adequate infrastructure facilities for horticultural crops. Among various schemes introduced by NCDC and NHB, the Soft Loan Scheme (SLS) of NHB is noteworthy. Under SLS, an assistance is provided to cooperative societies, public and private limited companies, and farmers association with a maximum limit of Rs.1.00 crore at 4 per cent service charges per annum with one year moratorium period to set up projects related to infrastructure development. Maharashtra is noticed to be the only state which has received about 52 per cent of the total soft loan distributed by NHB to 26 beneficiaries in the country. Majority of the beneficiaries of SLS in Maharashtra are processing cooperatives. The present study attempts to evaluate not only the NHB’s soft loan scheme but also the impact of the scheme on development of post-harvest infrastructure (PHI) for horticulture crops in Maharashtra. The focus of this study is on two processing-cum-export oriented grape growers’ cooperative societies. The study shows a positive impact of SLS towards development PHI facilities since such facilities have not only increased the export trade of the selected societies but they have also helped in increasing the productivity levels of the crops grown in the area, besides helping in reducing the post harvest losses of the produce. Nonetheless, with a view to further improve the efficiency of SLS, the study has made a few major suggestions, which mainly revolve around simplification of loan procedure adopted by the NHB, timely disbursement of the loan, financing of the entire comprehensive project rather than for certain specific components, subsidization of electricity tariffs for the processing units, subsidization of sea freight, provision of funds for setting up of Research and Development unit for the marketing of produce, provision of foreign market intelligence, etc. However, how best these suggestions are taken care of by the NHB and various other organizations will depend on their future strategies and policies relating to financing of PHI related facilities for horticultural crops. |
| Keywords: | Infrastructure Development Agro-Processing Cooperatives |
| JEL: | R11 |
| Date: | 2007–07–08 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:3905&r=cwa |
| By: | Shah, Deepak |
| Abstract: | An investigation into rural credit delivery system in Maharashtra shows slower growth in institutional finances through commercial banks, credit cooperatives, RRBs and LDBs, particularly during the decade of 1991-2000, which is mainly due to adverse environment created by the financial sector reforms. Due to unfavourable policy framework, the entire rural credit delivery system is reduced to a moribund state. High transaction costs and poor repayment performance are the twin root causes of the moribund state of rural credit delivery system. With a view to revive the agricultural credit delivery system, there is need to adopt innovative approaches like linking of Self-Help Groups (SHGs) and Non-Government Organizations (NGOs) with mainstream financial institutions. The revival of rural credit delivery system of Maharashtra also depends on strategies that are required for tackling issues such as sustainability and viability, operational efficiency, recovery performance, small farmer coverage and balanced sectoral development of the state. |
| Keywords: | Rural Credit Delivery |
| JEL: | R11 |
| Date: | 2007–07–05 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:3859&r=cwa |
| By: | Shah, Deepak |
| Abstract: | Although the Government has introduced a number of crop-oriented schemes to improve the output of various slow growth foodgrain crops such as pulses and coarse cereals, the success of these schemes will largely depend on the extent of adoption as the farmers grow these crops on poor and unirrigated land with generally low levels of inputs like fertilizers, pesticides, etc. Further, it is to be noted that pulse crops are more susceptible to pests and diseases than the cereal crops and, therefore, involve high risk. However, a recent study has suggested a number of strategies to further increase pulses output in Maharashtra. These strategies mainly revolve around protective irrigation, soil fertility management, improved crop production technique, plant protection measures, and diversification of cropping pattern. However, these strategies have not yielded the desired results so far as pulses and coarse cereal production in the country are concerned. |
| Keywords: | SUSTAINABILITY SLOW GROWTH FOODGRAIN CROPS |
| JEL: | O33 |
| Date: | 2007–07–05 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:3858&r=cwa |
| By: | Shah, Deepak |
| Abstract: | The study showed a reduction in the operational efficiency of the selected PACS during the post-economic reform period as against the pre-economic reform period. The operational efficiency was measured in respect of various liquidity ratio, profitability ratios and financial leverage ratios. Not only the selected societies showed a decline in their current ratio, rate of return on assets, return on owner’s equity and Marginal Efficiency of Capital (MEC) but also showed higher dependency on lender’s capital for their finances. This dependency was seen to be higher in the case of ‘A’ graded society. Nonetheless, ‘A’ graded society showed an improvement in its permanent capital. Further, as for ‘A’ graded society, there was not much improvement in the net worth, and in fact the share of net worth in its total liability had declined in the post-economic reform period. The declining share of net worth had caused an increase in debt-asset ratio of this society during the latter period. The return on owner’s equity of the selected societies were seen to fall sharply during the post-economic reform period. Since the return on owner’s equity is a function of as to how efficiently a firm manages its assets, the net profit margin on sales and the degree of financial leverage, a reduction in this equity could, therefore, be considered as a sign of reduction in the efficiency of the societies in managing their assets and liabilities, and also income and expenditure pattern during the latter period as against the former period. The reform initiatives could be held responsible for this moribund state of cooperative credit sector. Due to unfavourable policy framework, much of the rural finances extended through cooperatives are now going into investment rather then extending loans to farming sector. The need of the hour is not to rely on the financial sector reforms but tackling issues such as sustainability of and viability of these credit cooperatives. |
| Keywords: | Viability Measurement Reform Period |
| JEL: | R11 R1 |
| Date: | 2007–07–05 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:3856&r=cwa |
| By: | Shah, Deepak |
| Abstract: | The study conducted during 1994-95 in Jalgaon and Kolhapur districts of Maharashtra showed two differing scenarios insofar as the impact of milk cooperatives on production and marketed surplus is concerned. While milk cooperatives had positive and significant impact on both production and marketed surplus of milk in Kolhapur district, such impact could not be ascertained in Jalgaon district. The study also showed lower production and marketed surplus during summer season followed by rainy and winter seasons. However, the percentage marketed surplus was the highest in summer season followed by winter and rainy seasons. The higher percentage of marketed surplus in summer season was due to lower milk production, higher demand and higher prices offered by various agencies compared to other seasons. On an average, nearly three-fourths of milk produced was sold in extension and two-thirds in control area of both the selected districts. However, this proportion differed in different seasons and herd size categories. An analysis drawn from Marketed Surplus Function (MSF) also showed that total milk production in the household was the single most significant factor contributing to marketed surplus of milk. The next important variable positively affecting the marketed surplus of milk was the education level of the head of the household, particularly in control area of both the districts. Further, the negative impact of family size on the marketed surplus of milk could be ascertained only in Kolhapur district. In general, price of milk had very little influence on the marketed surplus of milk. Relatively small variation in price of milk within a season could be one of the reasons for lack of impact of price on marketed surplus of milk. Since in the short run there was no possibility of increasing milk production despite variation in prices, the MSF did not show significant influence of prices on marketed surplus of milk. |
| Keywords: | Milk Cooperatives Marketed Surplus |
| JEL: | R11 |
| Date: | 2007–07–05 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:3855&r=cwa |
| By: | Shah, Deepak |
| Abstract: | Many states in the country have initiated various measures to protect their forest resources. Maharashtra is no exception to this phenomenon. An attempt, therefore, has been made in this paper to examine the extent to which this state is successful in conserving and managing its forest resources. The main foci of attention of this study are on evaluating various forest related indicators of Maharashtra such as distribution of forest area, outturn of major and minor forest produce, income and expenditure pattern on state forestry, extent of social forestry, and afforestation, etc.The study revealed very interesting observations. One of the major observations of this study was the sharp decline in revenue receipts from state forestry, especially after the late eighties period. Very slow growth in total value of forest produce harvested and a sharp increase in total expenditure on state forestry were found to be the major causative factors responsible for this decline in revenue receipts. Although the Government has banned felling of trees in many parts of the state, it has also adversely affected not only the harvesting of forest produce and thereby revenue receipts from state forestry but also the working of FLCS in the state. The study provides certain policy suggestions that will not only help the state to increase its revenue receipts from state forestry but also in respect of achieving its goal of maintaining ecological balance in the state. |
| Keywords: | Management Forest Resources |
| JEL: | Q23 |
| Date: | 2007–07–06 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:3890&r=cwa |
| By: | Shah, Deepak |
| Abstract: | The present investigation was conducted in Kolhapur district of Maharashtra. The study showed a reduction in the operational efficiency of the selected PACS during the post-economic reform period as against the pre-economic reform period. The operational efficiency was measured in respect of various liquidity ratio, profitability ratios and financial leverage ratios. Not only the selected societies showed a decline in their current ratio, rate of return on assets, return on owner’s equity and marginal efficiency of capital (MEC) but also higher dependency on lender’s capital for their finances. This dependency was seen to be higher in the case of ‘A’ graded society. Nonetheless, ‘A’ graded society showed an improvement in its permanent capital during the latter period as against the former period. On the other hand, permanent capital position of ‘B’ graded society had declined during the latter period. Further, in the case of ‘A’ graded society there was not much improvement in the net worth, and in fact the share of net worth in its total liability had declined in the post-economic reform period. The declining share of net worth had caused an increase in debt-asset ratio of this society during the latter period as against the former period. In fact, among various ratios, the most important ratio estimated in this study was the return on owner’s equity. The estimated return on owner’s equity of the selected societies were seen to fall sharply during the post-economic reform period. Since the return on owner’s equity is a function of as to how efficiently a firm manages its assets, the net profit margin on sales and the degree of financial leverage, a reduction in return on equity of the selected societies could, therefore, be considered as a sign of reduction in the efficiency of the societies in managing their assets and liabilities, and also income and expenditure pattern during the latter period as against the former period. |
| Keywords: | Institutional Reforms Viability of PACS |
| JEL: | R11 |
| Date: | 2007–07–08 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:3903&r=cwa |
| By: | Shah, Deepak |
| Abstract: | In order to curb post-harvest losses of horticultural produce and attract private investment in the horticulture industry, the National Horticulture Board (NHB) had initiated soft loan schemes (SLSs) in 1993-94. Under these schemes, soft loan assistance with a maximum limit of Rs. 1.00 crore is provided at the rate of 4 per cent service charges per annum with one year moratorium period to set up projects related to marketing, processing and also export oriented units and purchase of plants and machinery for the same. The state of Maharashtra received the maximum assistance under the scheme. The present investigation is an attempt to evaluate the NHB soft loan schemes for the state of Maharashtra, specially with respect to the post-harvest infrastructure (PHI) facilities created and adequacy of incentives under the scheme. This study has made some interesting observations. The focus of this study is specifically on two grape growers’ societies. The study showed a positive impact of soft loan scheme towards development of PHI facilities in the area. However, in order to improve the efficiency of the soft loan schemes, the study also suggested various measures which mainly revolved around simplification of loan procedure adopted by the NHB, timely disbursement of the loan, financing of the entire comprehensive project rather than for certain specific components, subsidization of electricity tariffs for the processing units, subsidization of sea freight, provision of funds for setting up of Research and Development (R&D) unit for the marketing of produce, provision of foreign market intelligence for the exports of horticultural crops, etc. Participation of NCDC in working capital requirement of the grape growers’ societies is another suggestion of this study. |
| Keywords: | Incentives Post Harvest Infrastructure Facilities Horticulture Crops |
| JEL: | R11 |
| Date: | 2007–07–05 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:3857&r=cwa |
| By: | Shah, Deepak |
| Abstract: | This paper seeks to evaluate the present and future prospects of developing and developed countries in agricultural exports in general and in horticultural exports in particular. The study also evaluates the behaviour of international export prices for agricultural commodities, both for developing and developed nations. In general, this study provides an insight into the direction in which various developed and developing countries are heading for insofar as their agricultural and horticultural exports are concerned in the changed market conditions. The study has made a few major observations. First, the study shows decline in market share of developing countries’ in world agricultural exports in the face of marginal increase in their market share in world fruits and vegetable (F&V) exports during the period between 1981 and 1997. Second, although the study shows lower market share of developing countries’ in world F&V exports during the period between 1981 and 1997, the growth in F&V exports as proportion of total agricultural exports is noticed to be much faster for developing countries’ as against the developed countries’ during the same period. Third, though agricultural exports of Least Developed Countries (LDC) have grown only marginally between 1981 and 1997, the growth in their F&V exports is seen to have been tremendous, especially after the late eighties period. Similarly, Socialist Countries of Asia (SCA) and developing countries of Oceania have also shown sharp increases in their F&V exports after the late eighties period. Fourth, while except America, other Africa and Oceania, all the developing countries have shown decline in their market share in total F&V exports of Developing Market Economies (DME), Asia shows rise in its market share not only in agriculture but also in F&V exports of DME. Another major observation of this study is in terms of instabilities in export prices. The instabilities in export prices of agricultural commodities, including horticultural ones, are noticed to be more sharp for developing world as compared to developed world. The study, therefore, has categorically emphasized upon the fact that the future growth in horticulture production and trade, especially of developing world, will mainly depend on future price mechanism and also on the import demand of these high value crops in various regions of the world. |
| Keywords: | Horticultural Exports Developing Countries |
| JEL: | F10 |
| Date: | 2007–07–09 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:3925&r=cwa |
| By: | Shah, Deepak |
| Abstract: | The present study, carried out in the state of Maharashtra during 2003-04, has its foci on the cooperative leadership and characteristics in cooperative success and failure, especially with respect to fruit marketing societies operating in Maharashtra. The study concentrates on two societies dealing with the marketing of banana in the state of Maharashtra – one showing success (NCFSS) and the other failure (KGFSS) due to positive and negative leadership qualities and characteristics associated with societies. Due to strong financial position, the NCFSS showed autonomy/independence in its functioning. This society had shown perfect knowledge about the market forces and its business activities in accordance to the new domestic as well as global market environment. The KGFSS showed poor grasp either in terms of studying the market forces or shown inefficiency because of its own internal drawbacks in terms of managing the society or its own personal interests involved in the functioning of the society. The KGFSS is unable to generate allies for lobbing to safeguard as well as promoting its own interests and the interests of its members, whereas NCFSS is quite successful in such lobbing and promotional interest related activities. Since a significant number of fruit marketing societies operating in Maharashtra have shown a falling trend in their amount of extension of loan and its recovery, and also in respect of higher amount of losses in proportion to profit, efforts should be made to rectify these deficiencies in the functioning of these societies dealing with the marketing of high value crops. Some remedial measures and strategies framed or initiated by these marketing societies, particularly in respect of recovery of their loan advances, will certainly improve the efficiency and functioning of these societies in the future. Government support in this respect will have a catalytic effect in improving the overall efficacy and efficiency, as well as functioning |
| Keywords: | Rural Cooperative Marketing Management Efficiency and Era of Globalization |
| JEL: | R11 P13 |
| Date: | 2006–12–10 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:3853&r=cwa |