EEP-1 Course Outline Prof. Tarun Das

8/9/2019 EEP-1 Course Outline Prof. Tarun Das

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Prof. Tarun Das, IILM EEP-1 Course Outline 1

Economic Environment and Policy-Session-1: Course Outline

Prof. Tarun Das, Ph.D.Formerly, Economic Adviser, Ministry of Finance




Economic Environment and PolicyCourse Outline

Prof. Tarun DasContents

1. Profile of Resource Person

2. Course Objectives, Learning Outcomeand Pedagogy

3. Course Outline

4. Course Modules, Sessions and Topics5. Assessment Criteria6. An Introduction to Macroeconomics




1.1 Resource Person- Prof. Tarun Das H as 38 years experience for development

management. Worked in last 20 years as:1. Adviser (Modeling), Planning Commission,Govt. of India, New Delhi, 1987-1988.

2. Economic Adviser, Min of Finance, India,1989-Feb 2006.

3. Professor (Public Policy), IILM, March 2006-May 2007.4. Asian Development Bank Strategic Planning

Expert, Ministry of Finance, Govt. of Mongolia,Ulaanbaatar, June 2007- June 2008.

5. Consultant, Commonwealth Secretariat,London, July - August 2008.6. World Bank Consultant to Uzbekistan,

Tashkent, Sep-Oct 2008.




1.2 Resource Person- Prof. Tarun DasWorked as Consultant to the :

World Bank, ADB, GDN, IMF, ILO, UNDP,UN Economic & Social Council for Asia & Pacific,UN Conference for Trade and Development,UN Institute for Training and Research,UN Statistical Institute for Asia and Pacific,UN Economic Commission for Africa.Worked in 17 countries:Cambodia, Ethiopia, Gambia, India, Indonesia,Japan, Lao PDR, Malaysia, Mongolia, Nepal,Philippines, Samoa, Senegal, Switzerland,Thailand, UK, and USA.

Attended conferences in 10 countries:Bangladesh, Belgium, China, France, Germany,Ireland, Malaysia, Morocco, Singapore, UAE.




1.3 Resource Person- Prof. Tarun DasResearch/Teaching Interest : Public Policy,Econometrics, Research Methodology,Economic Environment and Reforms, Poverty,Inequality, Public Debt and External Debt

y Possesses diversity in skills in Teaching,Training, Research, Policy Planning andModeling. Published books and papers onreforms, fiscal policies, performance andprogram budgeting, transport modeling, publicdebt, external debt, poverty, inequality, FDI,privatisation, technology transfer etc..Qualifications : MA in Econ. (Gold Medalist),Calcutta University, 1969.-Ph.D. in Econ, as Commonwealth Scholar ,

East Anglia Univ., England, U.K., 1977.




2.1 Course ObjectiveThe objective of this course is to facilitate thelearning of macro business environment forinformed decision making.The focus of the course is on holistic

understanding of the functioning of theeconomy and putting business in broadermacroeconomic framework .More emphasis will be laid on understandingof basic concepts, methodology, techniques,their uses and limitations, rather than formalproofs and derivation of formula.




2.2 Learning Outcome At the end of the course students will have:

Comprehensive knowledge of the macro-economic framework, national income and itscomponents, key macro-economic variables,concepts, and tools for effective business

planning and decision making.Comprehensive understanding of the Indianand global public policies, economicenvironment and institutions, which affect corporate planning, good governance andbusiness prospects.Practical experiences of team work, groupresponsibility and effective network .




2.3 Pedagogy

1. Teaching techniques will consist of formallectures, case studies and discussion sessions.

2. Selected case studies will be given so as tohelp students to relate theoretical conceptswith real life situations in economic analysis,policy formulation and planning.

3. Students are also required to prepare group

project reports on topical issues relating toeconomic environment and policy and present the group project reports in the class.




2.4 Pedagogy4 . Students will be provided with coursematerial well in advance. To make classroompresentations by the teacher more meaningfuland effective, students are required to comeprepared and collect related information anddata from journals and websites, andparticipate actively in classroom sessions.

5. In order to learn leadership, teamwork and

networking with each other, students areencouraged to participate actively in groupdiscussions and preparation of project reports.




3.1 Course Outline: A quote from Alice in Wonderland

³

Would you tell me please, which way I ought togo from here? asked Alice. That depends a great deal on where you want to

get to, said the cat. I don t much care where ., said Alice. Then it does not matter which way you go, said

the cat... Alice in Wonderland , Lewis B. Carroll.

_____________________________________

Eventually Alice realized that it matters a great deal to know where to go and how to get there . The same is true today for any branchof Economics.




3.2 Introduction to the Course-Economic Environment and Policy falls

under the broad head of Macroeconomics

3.2 Introduction to the Course-Economic Environment and Policy falls

under the broad head of Macroeconomics

³ The master economist must be amathematician, historian, statesman,

philosopher. He must understandsymbols and speak in words. He must

study the present in the light of the pastfor the purposes of the future. ´

So said John Maynard Keynes, regardedas the Father of Macroeconomics.




3.3 Micro EconomicsDeals with allocation of resources in amarket economy Allocation of resources is, in fact,explained in terms of prices of goodsand prices of factors of production

Micro-Economic Theory

ProductPricing

Factor Pricing(Theory of

Distribution)

Theory of EconomicWelfare

Theory of Demand

Theory of Production &

CostWages(Labor)

Rent(Land)

Interest(Capital)

Profits(Entrepre

neur)

(Welfare Economics)




3.4 Macro Economics Deals with the analysis of economy as a national

or aggregate level, such as national income,output, employment, consumption, savings,investment, inflation, money supply, internationaltrade, balance of payments etc.

In the words of Kenneth E. Boulding Macroeconomics deals not with individual

quantities, but with aggregates of thesequantitities, not with individual incomes but withnational income, not with individual prices but with price levels, not with individual output but with national output.

Gardner Ackley says Macroeconomics deals with

economic affairs at large. It concerns the overalldimensions of economic life. It studies thecharacter of forests independently of trees whichcompose it.




3.5 Basic Macroeconomic Balance Equations Y = C + I + X M (1) Y = C + S (2) Y = Wages+ Rent+ Int erest+ Profits (3)Where, Y = Income, C = Consumption

S = Savings, I = Investment,X = Exports, M = Imports

Macroeconomics is the study of thebehavior of these components and thefactors which determine them.Factors include inflation, interest rate,exchange rate, employment etc. andpublic policies and structural reforms.




3.6 Macro Economics

Macro-Economic Theory

Theory of Consumpti

on

Theory of Investment

Theory of Income &

Employment

Theory of GeneralPrice Level &

Inflation

Theory of Economic

Growth

(DevelopmentEconomics)

Macro Theoryof Distribution

(RelativeFactor Shares)

Theory of Fluctuations(Business Cycles)




3.7 Economic EnvironmentEconomic environment is the most significant component of the businessenvironment. It affects the success andfailures, and the survival of a company.Economic environment comprises 3 broadcategories:

( 1) General economic conditions in terms of GDP, per capita income, inflation, trade,employment, poverty and inequality etc.

(2) Industrial conditions: Industrial output,profits, employment, labor relations etc.

( 3) Supply of resources land, labor andcapital, machinery and management.




4.1 Modules, Sessions, and Topics

Session-1: Introduction to the Course About the course

y Readingsy Learning approachesy Learning expectationsy Evaluation criteriay H ow to earn good credit in this course ?

Sessions 2-3 Module I: Introduction toMacroeconomic Environment and Systems.

y Macroeconomic factors influencing businessy

Brief Introduction to Economic Systems Capitalism, Socialism, Mixed Economy, Market Friendly Approach

y Brief Overview of Economic Planning in Indiay Understanding Economic Reforms





Sessions 4-6Macroeconomic framework in the context of Keynesian Model

Module II: Basic Macroeconomic Frameworky C ircular flow of income, GDP, GNP, NDP, NNP etc .

y Op en versus C losed Economyy Keynesian Model

y C onsum p tion ± MP C , MPS, Multi p lier y Investment function, C OR and Accelerator

y Business CyclesS essions 7-9Budget, Inflation, Fiscal and monetary policies

Module III: Monetary and Fiscal Policiesy Inflation

y Role of RB Iy Monetary Policy in Indiay Banking Sector Reformsy The Union Budgety Fiscal, revenue, and primary deficitsy Fiscal Policies





S essions 10-12: Industrial scenario and policies .Module IV: Industrial Policy and regulationy Growth, problems and policy issues

y Recent changes in Industrial Policyy Public versus private sector y Major industries in com petitive environment: Textile,

Automobile; FM C G; Electronicsy C om peting in the new economic environment

S essions 13-14: Review of Modules I to IV:W hat did you we learn?

S essions 15-17: Role of service sectorsModule V: S ervices S ector

y Growth, problems and policy issuesy Emerging sectors ± finance, telecom and retail





S ession 18-19: Dynamics of rural and agriculture businessModule VI: Understanding Rural Businessy Agriculture in the Indian economyy Public/private initiatives to stimulate the rural economy

y Agriculture related industries ± food processing, biotechnology

S essions 20-21: Review of Modules I to IV:W hat did you we learn?

S ession 22-24: External sector and balance of paymentsModule VII: External S ector

y Ex ports/Im ports and Trade Policyy C a p ital flowsy Balance of paymentsy Exchange ratey W TO /other trading agreements




4.5 Essential ReferencesBooksEssential Text Book:

Justin Paul, Business Environment ± Text and Cases, Tata McGraw Hill

Essential ReferenceEconomic Survey 2007-08, Ministry of Finance, Govt of India.Reserve Bank of India- Annual Report 2008, RBI, Mumbai .Economic Times and Economic & Political Weekly

Additional ReferencesFrancis Cherunilam: Business Environment-Text & Cases,

Himalaya Publishing House.Bimal Jalan- India s Economic Policy: Preparing for theTwenty First Century, Viking/ Penguin, 1997.T.N. Srinivasan- Eight Lectures on India s Economic Reforms,

Oxford University Press.Ernst and Young- Doing Business in India, Ernst & YoungPrivate Ltd.Uma Kapila: Understanding the Problems of Indian Economy,

Academic Foundation




4.6 Additional References:Publications by Professor Tarun Das

1. Economic Reforms in India- Rationale, Scope, Progress andUnfinished Agenda, pp.1-80, Bank of Maharashtra, PlanningDept, Pune, Feb 2003.

2. Preparation of Indices for Services Production and Prices, jointly with A. Saha, R. Dasgupta and R. Parmar, pp1-250, National Institutefor Banking and Management ( NIBM), Pune, India, Jan 2003.

3. Implications of Globalization on Industrial Diversification in Asia,pp.ix+1-86, UN ESCAP, Bangkok, UN Publications SalesNo.E.02.II.F.52, December 2001.

4. Foreign Investment- Technology Transfer- and Growth Nexus in Asian economies, pp.1-158, UN ESCAP, United Nations,Bangkok, Oct 1997.

5. Policies and Strategies for Promoting Private Sector s Role inIndustrial and Technological Development in Asia, pp.1-171,ST/ESCAP/1696, UN, New York, 1996.

6. Official Economic statistics- Part-1 on Government FinanceStatistics and Balance of Payments Statistics, pp.1-70, Part-2on Monetary and Financial statistics, UN StatisticalInstitute for Asia and Pacific, Chiba, Japan, Aug 2007.




4.7 Additional ReferencesPublications by Professor Tarun Das

7. Governance of Public Debt- International Experiences and

Best Practices, pp.1-44, Best Practices series No.10,UNITAR, Geneva, 2006.8. Financing International Cooperation behind National Borders-

a Case Study for India, pp.1-46, Office of Development Studies, UNDP, New York . March 2006.

9. General Agreement on Trade in Services Implications forthe Indian financial sector, pp.6-14, Bima Vidya , MDC,Mumbai, July 2003.

10. Fiscal Policies for Management of External Capital Flows, pp.194-207, in Corporate External Debt Management, edited byJawahar Mulraj, CRISIL, Bombay , Dec 1999.

11. Macro-economic Framework and Foreign Investment in India,WG on Investment and Financial Flows, pp.1-75,TD/B/WG.1/Misc.3/ Add.3, UNCTAD, Geneva, 1993.

12. Structural Reforms and Stabilization Policies in India Rationale and Medium Term Outlook, pp.20-56, in EconomicLiberalization and its Impact, edited by SP Gupta, MacmillanIndia Limited, Delhi, 1993.




4.8 References of study materials

1. Rakesh Basant, Corporate Response toEconomic Reforms, EPW, March 4, 20002. Swaminathan A Aiyar, Times of India.3. ICFAI Centre for Management Research,

The Indian Economy: Dealing with inflation4. Pattnaik and Sanantaraya, IndianExperience of Inflation, EPW, Jan. 28, 20065. Varsha Chitale, Budget Basics: H ow the

books are (not) balanced, rediff.com article6. M H Balasubrahmanya, India s Industrial

Policy in the Pre-Liberalization andLiberalization Periods: A Macro Analysis,Indian Institute of Science




4.9 References of study materials

7. James Gordon and Poonam Gupta, UnderstandingIndia s Services Revolution, IMF Working PaperWP/04/171

8. Kuttayan Annamalai and Sachin Rao, What Works:ITC s E-Choupal and Profitable RuralTransformation, World Resources Institute

9. ICFAI Centre for Management Research, The IndianRupee-US Dollar Exchange Rate: The EconomicImpact of a Strengthening Currency

10. US International Commission, The Emergence of India s Pharmaceutical Industry and Implicationsfor US Generic Drug Market, Office of EconomicsWorking Paper No. 2007-05-A




4.10 Reference Journals and WebsitesJournals / Magazines / Newspapers

Economic and Political Weeklyy The Economist y Outlook Businessy Business Todayy The Economic TimesImportant Websi t es:y www .nationmaster.comy www .nic.iny www .ciionline.orgy www .indiabudget.nic.iny www .f inmin.nic.iny www .ficci.comy www .planningcommission.nic.in




5.1 Evaluation Criteria

Sl . No .

C om ponents W eights(%)

W eek

1 Mid-Term Test 20 5-6

2 Grou p Project/ Assignment

20 7-8

3 End-Term Test 60

Total 100




5.2 Evaluation Parameters

Evaluation Parameters include submissionand presentation of GroupProject/Assignment, and completing Mid-Term and End-Term Tests.

It is necessary to follow the exact timeschedules for preparation and submission of group project/assignment as has been

indicated by the course coordinators.




5.3 Group Project and Presentation

Grou p project/ assignment shall be com prehensive in nature . The to p ic of the project/assignment shall be chosen by thegrou p and finalize with the course teacher by the end of sixthweek of teaching . The grou p shall be decided in consultation with the courseteacher . The credit shall be given to the analytical writing andability to relate with business decisions by p icking u p realtime situation .

It is mandatory that the entire class is present during thegrou p presentation . The presentation shall be of 15-20minutes for each grou p with a maximum of two presenters .

Use of PPT/ OH P is essential . C redit shall be given for structured presentation, analyticalcontent and ability to res pond to queries . C ourse teacher maycall for grou p viva-voce instead of presentation if deem fit .




5.4 Mid Term and End Term Test

Mid-Term TestMid-term test shall comprise of objectiveand short answer questions. The test shallbe of one hour duration. The test shall bebased broadly on the syllabus covered tillmid-term teaching.

End-Term Test

This would be a two-hour open-bookexamination.




6.1 Preparation for the course As regards preparation for the course, in fact for any course, let me remind you of an age-old Chinese saying:

The best way to complete a work is to start.Thereafter, it doest not matter at what speed you go or if you stop for a while fortaking rest. The only condition is that youshould not leave the work in between.Continue to work until you finish it.




Thank you

Have a Good Day

EEP-1 Course Outline Prof. Tarun Das

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