Public Policy Course Outline Prof. Tarun Das

8/14/2019 Public Policy 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.


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2EEP-1 Course OutlineProf. Tarun Das, IILM

Economic Environment and PolicyCourse OutlineProf. Tarun Das

Contents1. Profile of Resource Person

2. Course Objectives, LearningOutcome and Pedagogy

3. Course Outline

4. Course Modules, Sessions andTopics

5. Assessment Criteria

6. An Introduction to Macroeconomics


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1.1Resource Person- Prof. Tarun Das Has 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 PlanningExpert, 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.


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1.2Resource Person- Prof. Tarun Das

Worked as Consultanttothe: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.


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1.3Resource Person- Prof. Tarun Das Research/Teaching Interest: Public Policy,

Econometrics, Research Methodology, EconomicEnvironment and Reforms, Poverty, Inequality,

Public Debt and External Debt Possesses diversity in skills in Teaching,

Training, Research, Policy Planning and Modeling.Published books and papers on reforms, fiscalpolicies, performance and program budgeting,transport modeling, public debt, external debt,

poverty, inequality, FDI, privatisation, technologytransfer etc..

Qualifications: MA in Econ. (Gold Medalist),Calcutta University, 1969.-Ph.D. in Econ, as Commonwealth Scholar,

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


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2.1 Course Objective

The objective of this course is tofacilitate the learning of macro businessenvironment for informed decisionmaking.

The focus of the course is on holisticunderstanding of the functioning of theeconomy and putting business inbroader macroeconomic framework .

More emphasis will be laid on

understanding of basic concepts,methodology, techniques, their uses andlimitations, rather than formal proofsand derivation of formula.


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2.2 Learning OutcomeAt the end of the course students will have: Comprehensive knowledge of the macro-economic

framework, national income and its components,key macro-economic variables, concepts, and toolsfor effective business planning and decisionmaking.

Comprehensive understanding of the Indian and

global public policies, economic environment andinstitutions, which affect corporate planning, goodgovernance and business prospects.

Practical experiences of team work, groupresponsibility and effective network.


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2.3 Pedagogy

1. Teaching techniques will consist of formal lectures,

case studies and discussion sessions.

2. Selected case studies will be given so as to helpstudents to relate theoretical concepts with real lifesituations in economic analysis, policy formulation

and planning.

3. Students are also required to prepare group projectreports on topical issues relating to economicenvironment and policy and present the groupproject reports in the class.


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2.4 Pedagogy

4. Students will be provided with course materialwell in advance. To make classroompresentations by the teacher more meaningfuland effective, students are required to comeprepared and collect related information and datafrom journals and websites, and participate

actively in classroom sessions.5. In order to learn leadership, teamwork andnetworking with each other, students areencouraged to participate actively in group

discussions and preparation of project reports.


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3.1 Course Outline:A quote from Alice in Wonderland

Would you tell me please, which way I ought to

go from here? asked Alice.That depends a great deal on where you want

to get to, said the cat.I dont much care where ., said Alice.

Then it does not matter which way you go, saidthe cat... Alice in Wonderland, Lewis B. Carroll._____________________________________Eventually Alice realized that it matters a greatdeal to know where to goand how to get

there. The same is true today for any branchof Economics.


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3.2 Introduction to the Course-Economic Environment and Policy

falls under the broad head ofMacroeconomics

3.2 Introduction to the Course-Economic Environment and Policy

falls under the broad head ofMacroeconomics

The master economist must be amathematician, historian, statesman,

philosopher. He must understand

symbols and speak in words. He must

study the present in the light of the past

for the purposes of the future. So s aid John Maynard Keynes ,reg arded as the Father ofMacroeconomics .
http://www-groups.dcs.st-and.ac.uk/~history/PictDisplay/Keynes.html


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3.3 Micro Economics Deals with allocation of resources in a

market economy

Allocation of resources is, in fact, explainedin terms of prices of goods and prices offactors of production

Micro-Economic Theory

ProductPricing

Factor Pricing(Theory of

Distribution)

Theory ofEconomicWelfare

Theory ofDemand

Theory ofProduction &

CostWages(Labor)

Rent(Land)

Interest(Capital)

Profits(Entrepre

neur)

(Welfare Economics)


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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. BouldingMacroeconomics deals not with individualquantities, but with aggregates of thesequantitities, not with individual incomes but with

national income, not with individual prices butwith price levels, not with individual output butwith national output.

Gardner Ackley says Macroeconomics deals witheconomic affairs at large. It concerns the overalldimensions of economic life. It studies the

character of forests independently of trees whichcompose it.


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3.5 Basic Macroeconomic BalanceEquations

Y = C + I + X M (1) Y = C + S (2)

Y = Wages+ Rent+ Interest+ Profits (3)Where,Y = Income, C = Consumption

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

Macroeconomics is the study of the behavior

of these components and the factors whichdetermine them.

Factors include inflation, interest rate,exchange rate, employment etc. and publicpolicies and structural reforms.


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3.6 Macro Economics

Macro-Economic Theory

Theory ofConsumpti

on

Theory ofInvestment

Theory ofIncome &

Employment

Theory of GeneralPrice Level &

Inflation

Theory ofEconomicGrowth

(DevelopmentEconomics)

Macro Theoryof Distribution

(RelativeFactor Shares)

Theory of Fluctuations(Business Cycles)


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3.7 Economic Environment

Economic environment is the mostsignificant component of the business

environment. 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 and

capital, machinery and management.


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4.1 Modules, Sessions, and Topics

Session-1: Introduction to the Course

About the course Readings Learning approaches Learning expectations Evaluation criteria How to earn good credit in this course?

Sessions 2-3 Module I: Introduction toMacroeconomic Environment and Systems. Macroeconomic factors influencing business Brief Introduction to Economic Systems Capitalism,

Socialism, Mixed Economy, Market Friendly Approach Brief Overview of Economic Planning in India

Understanding Economic Reforms


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Sessions 4-6

Macroeconomic framework in the context of Keynesian ModelModule II: Basic Macroeconomic Framework Circular flow of income, GDP, GNP, NDP, NNP etc.

Open versus Closed Economy Keynesian Model

Consumption MPC, MPS, Multiplier Investment function, COR and Accelerator

Business CyclesSessions 7-9Budget, Inflation, Fiscal and monetary policies

Module III: Monetary and Fiscal Policies Inflation

Role of RBI Monetary Policy in India

Banking Sector Reforms The Union Budget Fiscal, revenue, and primary deficits Fiscal Policies


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Sessions 10-12: Industrial scenario and policies.

Module IV: Industrial Policy and regulation Growth, problems and policy issues

Recent changes in Industrial Policy Public versus private sector Major industries in competitive environment: Textile,

Automobile; FMCG; Electronics Competing in the new economic environment

Sessions 13-14: Review of Modules I to IV:What did you we learn?

Sessions 15-17: Role of service sectorsModule V: Services Sector Growth, problems and policy issues

Emerging sectors finance, telecom and retail


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Session 18-19: Dynamics of rural and agriculture businessModule VI: Understanding Rural Business

Agriculture in the Indian economy Public/private initiatives to stimulate the rural

economy Agriculture related industries food processing, biotechnology

Sessions 20-21: Review of Modules I to IV:What did you we learn?

Session 22-24: External sector and balance of paymentsModule VII: External Sector

Exports/Imports and Trade Policy

Capital flows Balance of payments Exchange rate WTO/other trading agreements


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4.5 Essential ReferencesBooks

Essential Text Book:

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

Essential Reference

Economic Survey 2007-08, Ministry of Finance, Govt ofIndia.

Reserve Bank of India- Annual Report 2008, RBI, Mumbai. Economic Times and Economic & Political Weekly

Additional References Francis Cherunilam: Business Environment-Text & Cases,

Himalaya Publishing House. Bimal Jalan- Indias Economic Policy: Preparing for the

Twenty First Century, Viking/ Penguin, 1997. T.N. Srinivasan- Eight Lectures on Indias Economic

Reforms, Oxford University Press. Ernst and Young- Doing Business in India, Ernst & YoungPrivate Ltd.

Uma Kapila: Understanding the Problems of IndianEconomy, Academic Foundation


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4.6 Additional References:Publications by Professor Tarun Das

1. Economic Reforms in India- Rationale, Scope, Progress and

Unfinished 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, NationalInstitute for 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 Sales

No.E.02.II.F.52, December 2001.4. Foreign Investment- Technology Transfer- and Growth Nexus inAsian economies, pp.1-158, UN ESCAP, United Nations,Bangkok, Oct 1997.

5. Policies and Strategies for Promoting Private Sectors 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-2 on Monetary and Financial statistics, UN StatisticalInstitute for Asia and Pacific, Chiba, Japan, Aug 2007.


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4.7 Additional ReferencesPublications by Professor Tarun Das

7. Governance of Public Debt- International Experiences andBest 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 DevelopmentStudies, UNDP, New York. March 2006.

9. General Agreement on Trade in Services Implications for theIndian 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.


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4.8 References of study materials

1. Rakesh Basant, Corporate Response to

Economic 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, Indian Experience of

Inflation, EPW, Jan. 28, 20065. Varsha Chitale, Budget Basics: How the books

are (not) balanced, rediff.com article6. M H Balasubrahmanya, Indias Industrial Policy in

the Pre-Liberalization and Liberalization Periods:A Macro Analysis, Indian Institute of Science


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4.9 References of study materials

7. James Gordon and Poonam Gupta,Understanding Indias Services Revolution, IMFWorking Paper WP/04/171

8. Kuttayan Annamalai and Sachin Rao, WhatWorks: ITCs E-Choupal and Profitable RuralTransformation, World Resources Institute

9. ICFAI Centre for Management Research, TheIndian Rupee-US Dollar Exchange Rate: TheEconomic Impact of a Strengthening Currency

10. US International Commission, The Emergence of

Indias Pharmaceutical Industry and Implicationsfor US Generic Drug Market, Office of EconomicsWorking Paper No. 2007-05-A


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4.10 Reference Journals andWebsites

Journals / Magazines / Newspapers

Economic and Political Weekly The Economist Outlook Business Business Today The Economic Times

Important Websites: www.nationmaster.com www.nic.in www.ciionline.org www.indiabudget.nic.in www.finmin.nic.in www.ficci.com www.planningcommission.nic.in
http://www.nationmaster.com/http://www.nic.in/http://www.ciionline.org/http://www.indiabudget.nic.in/http://www.finmin.nic.in/http://www.ficci.com/http://www.planningcommission.nic.in/http://www.planningcommission.nic.in/http://www.ficci.com/http://www.finmin.nic.in/http://www.indiabudget.nic.in/http://www.ciionline.org/http://www.nic.in/http://www.nationmaster.com/


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5.1 Evaluation Criteria

Sl.

No.

Components Weights

(%)

Week

1 Mid-Term Test 20 5-6

2 Group Project/Assignment

20 7-8

3 End-Term Test 60

Total 100


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5.2 Evaluation Parameters

Evaluation Parameters includesubmission and presentation of GroupProject/Assignment, and completingMid-Term and End-Term Tests.

It is necessary to follow the exact timeschedules for preparation andsubmission of group

project/assignment as has beenindicated by the course coordinators.


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5.3 Group Project and Presentation

Group project/ assignment shall be comprehensive in nature.The topic of the project/assignment shall be chosen by thegroup and finalize with the course teacher by the end of sixthweek of teaching.

The group shall be decided in consultation with the courseteacher. The credit shall be given to the analytical writing and

ability to relate with business decisions by picking up realtime situation.

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

Use of PPT/ OHP is essential. Credit shall be given for structured presentation, analytical

content and ability to respond to queries. Course teachermay call for group viva-voce instead of presentation if deemfit.


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5.4 Mid Term and End Term Test

Mid-Term Test

Mid-term test shall comprise ofobjective and short answerquestions. The test shall be of onehour duration. The test shall be

based broadly on the syllabuscovered till mid-term teaching.

End-Term Test

This would be a two-hour open-bookexamination.


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6.1 Preparation for the course

As regards preparation for the course,

in fact for any course, let me remindyou of an age-old Chinese saying:

The best way to complete a work is tostart. Thereafter, it doest not matter at

what speed you go or if you stop for awhile for taking rest. The only conditionis that you should not leave the work inbetween. Continue to work until you

finish it.


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Public Policy Course Outline Prof. Tarun Das

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